Investors took heart from the Chinese economic growth data that met analysts' estimates. The world's second-largest economy expanded by 7.5% from a year earlier in the second quarter ended June 2013, slowing from the previous quarter's 7.7%, according to data from the National Bureau of Statistics in Beijing. The statistics bureau said GDP saw the second consecutive quarter of slowing growth but still has the right conditions to meet its 7.5% growth target for this year.
But gains across the regional bourses were meager with investors reluctant to make any significant moves on cautious ahead of the US data on June's retail sales today that may add to the case for the Federal Reserve to reduce monetary stimulus. Retail sales were up 0.6% in May. Market pundits were expecting a further improvement in June's retail sales numbers on the back of cheaper borrowing costs and increasing household wealth.
In the Asia Pacific region, Australian stock market closed slight higher led by banks and financials. The benchmark S&P/ASX200 added 0.14% to 4981.10, while All Ordinaries jumped 0.16% to 4965.60.
Treasury Wine Estates, the world's second-biggest listed winemaker by revenue, closed 12.5% lower at A$5.095 in Sydney on news of A$160 million write-down. Treasury announced today it will take a A$160 million before tax hit to its earnings to help rid the key US market of aged and excess wine stock as well as cope with a restructure of its distribution system into America.
The Australian Bureau of Statistics said on Monday that sales of new motor vehicles in Australia jumped by the most in 10 months in June to hit record high, sign consumers were upbeat enough to splash out on big ticket items despite surveys showing subdued confidence. Figures from the ABS showed new vehicle sales rose 4% to a seasonally adjusted 97,687 in June, from 93,927 in May. The jump left sales up 7.1% on June last year and a big acceleration from May. Sales of passenger vehicles increased by 3.7% in the month, while those for sports utilities rose 2.7%. Sales of other vehicles, including trucks, climbed 6.6%, which came on top of a 4% rise the previous month and pointed to solid business investment.
In New Zealand, the Auckland shares jumped, pushing up the NZX 50 Index for an eighth straight session, led by A2 Corp, Telecom, Port of Tauranga and Fletcher Building. The NZX 50 rose 37.907 points, or 0.8%, to 4606.24.
A2 Corp, which markets milk with a protein variant said to have health benefits, rose 4.6% to 68 cents in New Zealand. The shares have gained 45% in the past 12 months and were aided by the company's April announcement of infant formula sales targeting the Chinese market.
In China, Shanghai's share market rallied today, extending last week gaining streak, after data showed domestic economy expanded in line with expectation in the second quarter and as the government approval for doubling the investment quota for foreigners. The benchmark Shanghai Composite index rose 1% to finish at 2059.39.
Brokerages stocks were best performer in the Chinese market today after China's securities regulator on Friday approved nearly doubling the investment quota to US$150 billion for Qualified Foreign Institutional Investors. CITIC Securities, China's biggest listing broker, jumped 4% to 10.96 yuan. Haitong Securities rose 4% to 10.98 yuan. Founder Securities surged 6.4% to 6.15 yuan.
Shares of Tech and telecom related companies also climbed up in China after reports presided over by Premier Li Keqiang that China has set an annual average growth goal of 20% in the consumption of information products and services from 2013 to 2015 as the country is striving to boost domestic consumption to promote economic transition. Datang Telecom Technology Co rose 4.8% to 13.42 yuan. Fiberhome Telecommunication Technologies Co jumped 6.9% to 17.92 yuan. Shenzhen Kingdom Sci-Tech Co surged 8.5% to 16.17 yuan.
In Hong Kong, the HK stock market closed tad higher after moving in and out of the neutral line. The benchmark Hang Seng Index finished 0.12% higher from prior day closure at 21303.31. The benchmark index had fallen as low as 0.34% and rose as high as 0.54% during intraday course.
Angang Steel Co jumped 8.2% to HK$ 4.22 after issuing a positive first-half profit alert. Angang Steel forecasted on last Friday to report net profit of about Rmb702 million for the six months ended 30 June 2013 as compared to a loss of Rmb1,976 million for the same period in 2012.
Indian stock market was hovering near intraday high in mid-afternoon trade. Firmness in Asian and European markets boosted gains. Sentiment also strengthened after the latest data showed that rise in inflation based on the wholesale price index (WPI) in June 2013 was more or less in with market expectations. The Sensex, was up 83.54 points or 0.42%, up 158.82 points from the day's low and off 30.43 points from the day's high.
Among key Indian stocks, Reliance Industries (RIL) extended intraday gain. Bank stocks were mostly higher even as the Reserve Bank of India (RBI) imposed monetary penalty on the 22 banks for violation of its instructions. SpiceJet jumped on high volume on reports that Kuwait Airways is looking to pick up a nearly 25% stake in the budget airline. Opto Circuits (India) galloped on high volume.
India's inflation based on the wholesale price index (WPI) accelerated in June 2013 due to increase in food prices and prices of non-food primary articles, data released by the government today, 15 July 2013, showed. WPI inflation increased to 4.86% in June 2013, from 4.7% in May 2013. Fuel and manufactured products inflation eased in June 2013, the latest data showed. Meanwhile the government revised downwards WPI inflation for April 2013 to 4.77% from 4.89% reported earlier.
Consumer price inflation accelerated in June 2013, data released by the government after trading hours on Friday, 12 July 2013, showed. The combined consumer price index (CPI) for urban and rural India edged up to 9.87% in June 2013 from 9.31% in May 2013.
Industrial production declined 1.6% in May 2013, as against a downwardly revised 1.9% growth in April 2013, data released by the government after trading hours on Friday, 12 July 2013, showed. The continuous decline in the output of mining sector remained the major drag on the growth of industrial production, while the output of manufacturing sector also declined in May 2013. The output of the mining sector declined 5.7% and that of the manufacturing sector declined 2% in May 2013. However, the electricity generation grew 6.2% in May 2013, restricting further decline in the output of industrial production in May 2013.
Elsewhere in the region, benchmarks in Singapore, Indonesia and Malaysia closed little higher, while South Korea and Taiwan markets rose 0.3% and 0.4%, respectively. Japan's financial markets were closed for a public holiday.
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