Headline indices of the Asia Pacific market rallied for second straight day on Thursday, June 27, 2013, helped to recouping some recent losses on reduced concern that the Federal Reserve will begin to withdraw its stimulus in the near future. MSCI's broadest index of Asia Pacific shares outside Japan gained nearly 2%, pulling away from an 11-month low hit earlier this week.
Investors across the region took a hearts from the US Commerce Department's slashing of first-quarter economic growth projections to 1.8%, from an earlier estimate of 2.4% that reinforced speculation that the Federal Reserve would keep pumping money into the economy through its bond-buying program.
Market sentiment was also supported by the European Central Bank assurance it would keep its own loose monetary policy in place for the foreseeable future as it tries to stoke growth in the recession-hit euro zone.
Markets have also won support from receding concerns over a Chinese liquidity crunch after assurances by China that it will move in to stabilize the liquidity crisis that has gripped the country's financial markets.
In the Asia Pacific region, the Japan's share market advanced for the first time in four days as investors chased for bottom hunting across the board on tracking overnight rise on Wall Street, fading China liquidity fears and yen depreciation against major currencies. The Nikkei Stock Average advanced 379.54 points to 13,213.55, while the broader Topix index climbed 29.55 points to 1,098.83.
Taiwan shares rose sharply today, sending the benchmark Taiex index 1.3% higher at 7883.90, extended Wednesday's rebound after recent losses. TSMC raised 3% at NT$104.50 while UMC added 6.6% limit-up at NT$14.45. Fubon Financial jumped 3.5% to NT$40.00 and Chinatrust Financial was up 1.4% at NT$18.15.
Australian stock market rallied for second straight day, adding A$25 billion to the market's value. The benchmark S&P/ASX200 jumped 79.6 points, or 1.7%, to 4811.3, while the broader All Ordinaries rose 77 points, or 1.6%, to 4784.8. Banks and retail stocks led today's charge, with the financial sector rising 1.9%, consumer staples up 2.4% and consumer discretionary adding 2.2%.
New Zealand shares extended their rally from a three-month low earlier in the week as stock markets around the world recovered on the prospect of slower US growth tempering optimism for higher interest rates. OceanaGold led gainers. The NZX 50 Index rose 23.355 points, or 0.532%, to 4,416.961. Within the index, 30 stocks rose, 13 fell and seven were unchanged.
China's shares closed mixed in lackluster trade on Thursday, June 27, 2013, with the benchmark Shanghai Composite index down by 0.1% to finish at 1950.01. The market registered decline for seventh session in row, after reversing initial gains, amid lingering worries about the domestic economic growth after the Fitch Ratings on Wednesday cut its forecast on China's 2013 economic growth to 7.5% from its previous projection of 8% in March. Goldman Sachs, HSBC, Bank of America-Merrill Lynch and Credit Agricole have all recently cut their growth projections for China, with Credit Suisse saying the Chinese economy might slow to 6% expansion in the year ahead.
Chinese stocks rose in the morning today after China reported better than expected industrial profits. the National Bureau of Statistics said in a statement today that industrial profits increased 15.5% from a year earlier in May, compared with a 9.3% pace in April and 5.3% in May. The profits totaled 470.5 billion yuan last month.
Hong Kong stocks rose, with the Hang Seng Index up by 0.5% to 20440.08, as investors stepping in for risk assets after China reported better than expected industrial profits and on hopes the Federal Reserve will maintain its bond purchases for longer. Among the 50 blue chips, 32 stocks rose and 15 fell, with three stocks remaining steady. China Coal dipped 3.6% to HK$4.04, while CR Power gained 6% to HK$18.36, making themselves the biggest blue-chip loser and winner. HK heavyweights were higher, with China Mobile added 0.8% to HK$77.85, while HSBC was flat at HK$80.5. Thermal IPPs shares rose, with Huaneng Power and Huadian Power shot up 6.5% and 5.3% to HK$7.66 and HK$3.21.
Singapore shares rose for the third consecutive session and were headed for their biggest daily rise in more than a week on easing worries about an imminent end to the Federal Reserve's bond buying. The benchmark Straits Times Index rose 1.4% to 3,147.28 points.
Indian stock market closed sharp higher in volatile trade, with the BSE barometer index, SENSEX, provisionally closed 1.7% up at 18868.15, on heavy buying by funds and retail investors amid firm global cues. Lower than expected March quarter CAD also underpinned risk appetite in the market. Also, covering up of pending short-positions by participants due to settlement in the derivatives segment supported the uptrend.
Elsewhere in the region, Indonesia's JKSE rose 1.9%. Malaysia's KLSE added 0.6%. South Korea's KOSPI rose 2.9%.
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