Asia Pacific share market finished mostly higher on last trading session of the week ended Friday, 06 February 2015, as risk sentiments encouraged by tracking solid gain on the US equities overnight and stabilization in crude oil price. But, gains on the upside were limited on caution ahead of the closely-watched U.S. jobs report and uncertainty about Greece's bailout program. The MSCI Asia Pacific Index rose 0.3% to 142.10.
Crude oil headed for the biggest weekly advance since February 2011. Benchmark Brent crude futures were $1 higher on the day at $57.77 a barrel. Brent has gained almost 18% since last Friday and is on its strongest two-week run since 1998.
But, gains on the upside was limited amidst continued worrying over the Athens after the finance ministers of Germany and Greece openly clashed during a press conference in Berlin, failing to reach any deal to resolve the latter's financial crisis. Also, investors were in caution ahead of closely-watched US jobs report for January due later in the session.
Among Asian bourses
Australia market climbs to fresh seven-year high
The Australian share market advanced for twelfth consecutive session, closing at highest level since May 2008, amid growing expectation the Reserve Bank of Australia to continue cutting interest rates in the first half of 2015 after downward revisions to economic growth and inflation. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each gained by 0.16% to 5820.20 and 5774.70, respectively. Since the start of the rally on January 21, the ASX200 index has surged 10% higher.
The Reserve Bank of Australia on Friday lowered both its medium-term forecasts for inflation and economic growth, saying the economy won't grow fast enough in the next year to prevent a further rise in unemployment. The central bank now expects gross domestic product growth between 2.25% to 3.25% through 2015, down a quarter percentage point from its November outlook. Inflation is forecast between 2% to 3% for the same period, compared with a prior view of 2.5% to 3.5%. The market participants expects the central bank downward revision of both growth and inflation is paving the way for at least one more cut by June 2015 after the RBA cut interest rates by one quarter of a percentage point on Tuesday to a record low 2.25%, its first cut since August 2013.
Financial stocks closed mixed amid profit taking following strong rise in recent sessions. Commonwealth Bank of Australia declined 0.3% to A$92.98 and ANZ Banking Group lost 0.2% to A$34.90, while National Australia Bank advanced 0.7% to A$37.21 and Westpac Banking Corp jumped 1.4% to A$36.96.
Energy stocks advanced after Crude oil for March 2015 contract increased by 4.2% at 50.48 $ / barrel. Woodside Petroleum dropped 0.7% to A$35.49, while Origin Energy climbed 0.9% to A$11.97, Santos added 0.1% to A$8.10 yuan, and Oil Search grew 0.6% to A$8.28.
Nikkei rebounds 0.82%
Japanese share market finished the session higher, as investment appetite for risk improved on tracking solid gains on the US stocks overnight and greenback strength against yen. The benchmark Nikkei Stock Average added 0.82% to close at 17648.50, while the broader Topix has gained 0.5% to close at 1417.19.
Oil-related shares advanced the most in Tokyo after crude oil rebounded overnight. Fuel refiner and oil explorer JX Holdings surged 4% to 473.2 yen. Oil explorer Inpex Corp. climbed 0.9% to 1,372.5 yen. Japan Petroleum Exploration Co. rose 2.3% to 3,755 yen.
Nisshin Steel soared 19% to 1,433 yen, after the company boosted its full-year net income forecast by 23% to 16 billion yen.
Nikon dropped 5.5% to 1,467 yen, after camera manufacturer cut its full-year net-income forecast by 47% to 20 billion yen, missing analysts for a 37.3 billion yen profit.
Suzuki Motor sank 5.8% to 3,439.5 yen after the automaker cut its full-year net-income forecast 8.7% to 105 billion yen.
China stocks fall on concerns over growth, new share sale
Mainland China share market ended lower, as risk aversion selloff amidst deepening concerns over domestic economic slowdown and on worries a raft of new initial public offerings (IPOs) due next week will hurt market liquidity. The Shanghai Composite Index closed 1.93% down at 3075.91, taking this week's loss to 4.2%.
Shares in the Mainland market trapped under selling pressure since morning amid deepening concern over economic slowdown. Sentiment also fell after state media reports on Thursday that the central bank's recent RRR cut won't mark the start of an aggressive easing stance. Further, supply pressure from a batch of initial public offerings slated for next week and stubbornly high short-term interest rates in the money market also weakened investors' appetite. A total of 24 companies will begin selling shares starting Feb. 9, locking up 2.05 trillion yuan ($328 billion).
All ten SSE industry groups declined, with utilities issue leading retreat, lower by 3.7%, followed by information technology (down 2.9%), energy (down 2.7%), materials (down 2.4%), telecommunication services (down 2.2%), industrials (down 2.2%), consumer discretionary (down 1.2%), healthcare (down 0.9%), financial (down 0.7%), and consumer staples (down 0.5%).
Among the actively traded stocks, Huadian Power International Corp. tumbled 5.9% to 5.25 yuan. Inner Mongolian Baotou Steel Union Co. dropped 4.8% to 4.74 yuan. Poly Real Estate Group Co. retreated 5.3% to 9.49 yuan. Great Wall Motor Co. rose 5.3% to 48.35 yuan after monthly vehicle sales jumped 26.5% in January from a year earlier.
Hang Seng falls on profit booking
Hong Kong share market ended down in volatile trade, registering first drop in four consecutive sessions, as profit booking triggered on tracking fall in Mainland A-share market. The benchmark index opened 77 points higher, which evaporated sooner in tandem with the Shanghai market. The Hang Seng Index ended down 86.10 points or 0.35% to 24679.39, off an intra-day high of 24843.20 and day low of 24645.76. Turnover declined to HK$75.94 billion from HK$100.17 billion on Thursday.
Shares of casino companies advanced after reports that Macau will review its casino concessions by year end, and rumours that the government may issue a seventh concession. Galaxy Ent (00027) soared 7% to HK$43, becoming the top blue chip winner. Sands China (01928) added 3.1% to HK$38.35. MGM China (02282) gained 2.6% to HK$18.78. Wynn Macau (01128) put on 3.5% to HK$22.25.
Cheung Kong (00001) rose 2.5% to HK$150.1 and Hutchison Whampoa (00013) added 2% to HK$104.5, ahead of the results of shareholders and court meetings for its proposed reorganisation proposal. If the merger becomes effective, the dealings in the new company CKH Holdings shares will begin on 18 March.
Sensex, Nifty hit lowest level in more than 2 weeks
Indian stock market has extended losses for sixth trading session on caution ahead of the Delhi assembly polls tomorrow. As per provisional closing, the S&P BSE Sensex was off 119.19 points or 0.41% to 28,731.78. The CNX Nifty was off 50.65 points or 0.58% at 8,661.05.
HDFC Bank edged lower after announcing successful completion of raising funds through issue of shares to institutional investors in the domestic market and via issue of American Depository Receipts (ADR). NMDC edged higher after reporting Q3 earnings. Shares of public sector oil marketing companies (PSU OMCs) declined on rise in global crude oil prices. Index heavyweights Reliance Industries edged lower. Tata Motors tumbled after weak Q3 earnings.
Foreign portfolio investors sold Indian shares worth a net Rs 27.43 crore yesterday, 5 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 325.61 crore yesterday, 5 February 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 0.6% to 9456.18. South Korea KOSPI rose 0.14% to 1955.52. New Zealand market closed for public holiday. Indonesia's Jakarta Composite index added 1.2% to 5342.52. Singapore's Straits Times index was down 0.73% at 3431.36. Malaysia's KLCI was up 0.56% to 1813.25.
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