Asia Pacific share market mostly advanced in light trade on Monday, 25 May 2015, with Chinese bourses leading the region rally amid speculation the government will accelerate measures to bolster the economy, while better-than-expected export data and a weaker yen boosted Japanese bourses and news of M&A bolstered Australian stocks. The MSCI Asia Pacific Index gained 0.2% to 153.70.
Turnover across the region relatively thin due to market holiday in key markets. Markets in the U.S., U.K., Hong Kong and South Korea are closed Monday.
Among Asian bourses
Weaker yen drives Nikkei to fresh 15-years high
Japanese share market advanced to fresh 15 years high, as risk sentiments buoyed by yen depreciation to upper 121 level against the greenback and mid-131 level against the euro and better than expected export data for April. The Nikkei Stock Average ended up 0.74% at 20413.77. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.7% to 1659.15.
Shares of currency sensitive exporters were top gainers in the Tokyo market on the back of yen depreciation against the US dollar. The greenback surged on an unexpected jump in US core inflation in April and remarks by Federal Reserve chief Janet Yellen in support of a rate hike this year. The dollar was at 121.62 yen in afternoon trade on Monday, up slightly from 121.52 yen in New York and sharply up from 120.71 in Tokyo on Friday. A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated. Auto makers were higher as government figures showed vehicles were the largest contributor to April's gain in exports, with Toyota Motor Corp gaining 1.4% at 8,459 yen and Honda Motor Corp rising 1.4% to 4,180.5 yen.
Toshiba Corp gained 3% to 409.9 yen. The electronic maker announced on last Friday that it was expanding an accounting probe to its television, memory chip, and computer divisions in addition to infrastructure projects after earlier warning the investigation would take a toll on its balance sheet.
Tokyo Electric Power Co Inc advanced 6.7% to624 yen after the utility operator announced it has jointly won a large power and water infrastructure contract in the desert state of Qatar.
Suntory fell 1.7% to 5,160 yen while Japan Tobacco gained 1.07% to 4,700.5 yen following news reports that the brewer plans to buy JT's vending machine businesses.
Japan's trade account returned to deficit in April after a month in the black, but the shortfall shrank drastically to 53.4 billion yen compared with 825.5 billion yen a year earlier, finance ministry data showed. Exports grew 8% on year, while imports fell 4.2%. The ministry said the overall deficit was the narrowest since March 2009.
Australia market surges on M&A news
The Australian share market finished the session sharply higher, led by blue-chip lenders and miners as bargain hunters moved in and merger and acquisition activity stirred investor interest. The benchmark S&P/ASX 200 Index advanced 56.80 points, or 1%, to 5721.50, while the broader All Ordinaries Index added 51.70 points, or 0.91%, to 5719.90. Market turnover was relatively light, with 1.85 billion shares changing hands worth of A$3.74 billion.
Materials and resources players closed higher on sign of consolidation in the industry. Among the major mining shares, Rio Tinto added 1.6% to A$57.63 and Fortescue metal added 2.8% at A$2.17 after the iron ore price rallied 3.5% on Friday night to US$59.96/tonne. BHP Billiton closed 0.8% up at A$29.48.
Nickel miner Sirius Resources spurted 20.3% to A$3.90, after A$2.7 billion merger with base metals miner Independence Group was announced. Also in the mining industry, gold miner Evolution Mining is buying the Cowal gold mine in central NSW for US$550 million. Its shares were halted from trade at A$1.175 as it raises capital to help fund its deal.
Skilled Group jumped 11.8% to A$1.37, after the labour hire and recruitment company announced it had resumed merger talks with Programmed Maintenance Group, which dropped 4.2% to A$2.51.
New Zealand shares rise
Equities on the New Zealand share market rose after Contact Energy said it would return surplus cash to shareholders. Fisher & Paykel Healthcare and Metro Performance Glass gained ahead of reporting their earnings. By the provisional closing, the NZX 50 Index rose 18.964 points, or 0.3%, to 5794.981. Within the index, 20 stocks rose, 15 fell, and 15 were unchanged. Turnover was $111 million.
Nuplex Industries fell 1.3% to $3.71. The company, which makes resins used in industrial coatings and paint, is forecasting a 64% gain in sales in Asia by 2018 as its expansion of plants in China, Vietnam, Thailand and Indonesia bears fruit.
Methven rose 0.9% to $1.17. The tap and shower manufacturer and exporter lifted annual profit by 21% to $5.69 million in line with guidance, after the acquisition of a Chinese manufacturing plant widened margins.
Shanghai Composite hits fresh seven-year high
Mainland China share market finished higher for fifth straight session on Monday, 25 May 2015, as investors continued hunting for underperforming stocks and rotated out of overvalued stocks. All SSE sectors climbed with financial, infrastructure and transport stocks being top gainers after Beijing said it is seeking private funding for over $300 billion worth of public projects. The Shanghai Composite Index advanced 156.20 points, or 3.35%, to finish at 4813.80 points. The CSI300 index added 148.15 points, or 3%, to 5099.49.
The National Development & Reform Commission (NDRC) on Monday unveiled the list of 1,043 so-called public-private partnership (PPP) projects on its website, in the latest effort by the government to reinvigorate China's flagging economy.
China's Ministry of Finance said Monday it would cut import duties on cosmetics, shoes and clothes by 50% on average, as part of a plan to boost domestic consumption and to sustain economic growth.
Shares of industrial players advanced after China outlined plans to support manufacturing in 10 major areas, with China Shipbuilding Industry Co. and Ningbo Port Co. both soaring 10% daily limit. China outlined plans to support manufacturing in 10 major areas. China Southern Airlines jumped 8.04% to 10.75 yuan while China Eastern Airlines added 6.60% to 8.88 yuan.
Citic Securities Co. and Haitong Securities Co. surged after China and Hong Kong approved cross-border sales of mutual funds from July 1 in a move that will widen access to financial markets and capital in the world's second-largest economy.
Sensex slides on Fed rate hike concerns
Indian benchmark indices in India edged lower, after comments from Federal Reserve Chairwoman Janet Yellen on Friday, 22 May 2015, indicated that the US central bank is on track to raise interest rates this year. Higher US interest rates will reduce the attraction of riskier emerging-markets assets. As per provisional closing, the S&P BSE Sensex was down 314.27 points or 1.12% at 27,643.23. The CNX Nifty was down 88.70 points or 1.05% at 8,370.25, as per provisional closing. Cement stocks and index heavyweights ITC, HDFC and Infosys led decline for key benchmark indices on the first trading session of the week.
Index heavyweight and cigarette major ITC dropped after the company reported muted growth in Q4 net profit. Kotak Mahindra Bank declined after the government today, 25 May 2015, deferred the bank's proposal for increasing the aggregate foreign investment in the bank to 55%. IDFC dropped after the government today, 25 May 2015, rejected the proposal from Sharekhan and Human Value developers Pvt Ltd for the transfer of CCDs and CCPs of their companies held by IDFC to Baring Private Equity Asia IV Mauritius.
Foreign portfolio investors bought shares worth a net Rs 211.42 crore during the previous trading session on Friday, 22 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 237.62 crore on Friday, 22 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index grew 0.07% to 9645.17. Singapore's Straits Times index was 0.3% higher at 3460.85. Malaysia's KLCI declined 1.1% to 1767.38. Indonesia's Jakarta Composite index lost 0.5% to 5288.36.
Powered by Capital Market - Live News
