Asia Pacific share market mostly inclined on Friday, 09 December 2016, on tracking another strong day on Wall Street, where the main equity benchmarks rose to record highs Thursday on optimism that U.S. President-elect Donald Trump will unveil growth-spurring fiscal policies, including tax cuts. Also, the European Central Bank's decision to extend its debt-buying programme helped to underpin risk sentiments.
U.S stocks hit new records overnight on expectations U.S. President-elect Donald Trump's economic policies would help support growth and inflation in the world's largest economy.
The ECB trimmed back its asset buys in a surprise move on Thursday but promised protracted stimulus to aid a still fragile recovery, and dismissed any talk of tapering the programme away. The ECB said it would reduce its monthly asset buys to 60 billion euros ($63.68 billion) as of April, from the current 80 billion euros, and extend purchases to December from March - three months longer than what some analysts had forecast. That dragged down two-year yields across Europe and sharply steepened the yield curve, a gift for banks that typically borrow short maturities and lend long. The promise of lower rates for longer was taken as a green light for carry trades, where investors borrow euros at cheap rates to invest in higher yielding currencies. ECB President Mario Draghi said the unexpected move was not an outright winding-down of the central bank's quantitative easing (QE) program, and the central bank reserved the right to increase the size of purchases again if the eurozone economy falters. The ECB's bond purchase changes came less than a week before the Federal Reserve's policy meeting next Tuesday and Wednesday.
Investors' focus will now turn to next week's the Federal Open Market Committee meeting, during which the U.S. central bank is expected to raise rates. The market will focus on how aggressively the Fed will further tighten policy in coming quarters to keep the economy from overheating.
Oil built on its gains after rebounding overnight on growing optimism that non-OPEC producers might follow the cartel's lead by agreeing to cut output. U.S. crude added 0.7% to $51.18 a barrel. Brent crude rose 0.3% to $54.06.
Spot gold was down slightly at $1,170.03 an ounce and was set for a weekly decline of about 0.6%, pressured by the stronger U.S. dollar and expectations that the Fed will raise interest rates next week.
Among Asian bourses
Australia Market ends at 4-month high
Australian share market closed session at four month peak today, with financials and energy players added leading gains. At the closing bell, the benchmark S&P/ASX 200 index advanced 17 points, or 0.31%, to 5560.60, while the broader All Ordinaries index inclined 16.80 points, or 0.3%, to close at 5615.80.
Energy stocks were ahead as crude oil prices steady on Friday, holding onto the previous session's gains on optimism that non-Opec producers might agree to cut output. Woodside Petroleum rose 2.4% to A$30.59 and Origin Energy gained 1.6% to A$6.55.
Metals and mining stocks reversed early gains to close lower after China iron ore and steel futures ran in to profit taking after a six-day rally. Rio Tinto fell 0.1% to A$62.65 and BHP ended down 0.2% to A$25.98. Fortescue shed 0.2% to A$6.68.
Nikkei attains new 2016 high
The Japan share market inclined to a new 2016 high today, on tracking positive lead from Wall Street overnight and yen depreciation to 115 level against greenback. The Nikkei Stock Average rose 230.90 points, or 1.2%, to 18996.37, the highest level since Dec. 30 2015. The Nikkei rose 3.1% this week. The Topix index of all first-section issues finished up 12.67 points, or 0.84%, at 1,525.36.
Shares of banks and financials gained on speculation for U.S. fiscal stimulus and a higher yield environment. Japanese government bond yields rose after the European Central Bank's decision Thursday to extend but scale back its monthly stimulus. Mitsubishi UFJ Financial Group Inc. gained 2.2% to 762.8 yen. Nomura Holdings Inc. rose 4.8% to Y770.6.
Energy stocks advanced after crude oil closed above $50 a barrel Thursday, as market participants turned their attention to a planned meeting between OPEC and non-OPEC producers to discuss coordinating production cuts. Oil explorer Inpex Corp. rose 4.1% to Y1,248.0. Oil distributor Idemitsu Kosan Co. gained 5.3% to Y3,130.
China Stocks end stronger
Mainland China stock market ended stronger, after official data released today showing that China's producer prices rose at the fastest pace in over five years in November (up.3% year on year in November, its biggest rise since October 2011). China's consumer prices also rose 2.3% year on year in November, accelerating from a 2.1% gain in October. The fast increase in producer prices suggests an improved demand in the macro-economy and better corporate performance. Most sectors in the mainland rose, with banks leading the gains. The Shanghai Composite Index added 0.54%, to 3,232.88, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 0.35% to 2,070.01. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, fell 0.7% to close at 2,099.89 points. For the week, the Shanghai Composite Index dipped 0.34%.
Shares of banks and infrastructure companies were biggest contributor to the market gains, with China State Construction Engineering Corp jumping 8.71% to 10.11 yuan and Bank of Communications, the country's fifth-biggest lender, rising 4.24% to 6.15 yuan.
Casinos drag on Hong Kong stocks
The Hong Kong stock market finished down for the first time in last four sessions, with Macau gaming counters leading retreat after a report that China was restricting cash withdrawals in Macau amid efforts to control capital outflows. The Hang Seng Index ended down 0.44%, or 100.86 points, to 22,760.98, while the Hang Seng China Enterprises index declined 0.29%, or 28.87 points, to 9,867.95. Turnover increased to HK$76.4 billion from HK$73.5 billion on Thursday. For the week, Hang Seng index still rose 0.9%.
Shares of casino operators including tumbled after a report that Macau was preparing to halve the amount of cash China UnionPay card holders can withdraw from ATM machines. The shares clawed back some of their losses after China UnionPay dismissed cash-curb reports. Galaxy Entertainment (00027) slipped 7% to HK$35. Sands China (01928) plunged 7.9% to HK$34.55. Melco International (00200) dived 10.4% to HK$11.22. Wynn Macau (01128) declined 7% to HK$13.1.
Nifty hits 4-weeks closing high
Key benchmark indices ended on a positive note after hovering in narrow range for most part of the session. The barometer index, the S&P BSE Sensex, rose 52.90 points or 0.20% to settle at 26,747.18. The Nifty 50 index rose 14.90 points or 0.18% to settle at 8,261.75. The Sensex hits its highest closing level in more than two weeks. The Nifty hits its highest closing level in four weeks.
Mahindra & Mahindra (M&M) fell 1.43% to Rs 1,189.10. The company said it will be undertaking scheduled maintenance shutdown at some of its automotive and tractor plants in December 2016. It will also observe on need basis few days as 'no production days' at some of its automotive/tractor plants including Chakan plant of its wholly-owned subsidiary Mahindra Vehicle Manufacturers as part of its efforts to optimize inventories during December year-end. The management does not envisage any adverse impact on the availability of products in the market due to adequacy of stocks to serve the market requirements.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 shed 0.3% to 6893.30. Indonesia's Jakarta Composite index added 0.1% to 5308.13. Taiwan's Taiex grew 0.2% to 9392.68. South Korea's KOSPI index was down 0.3% to 2024.69. Malaysia's KLCI slipped 0.1% to 1641.42. Singapore's Straits Times index fell 0.1% to 2956.13.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
