Headline shares of the Asia Pacific market closed mostly higher on Thursday, 14 August 2014, extending gain to a fourth day, on easing geopolitical tensions over Ukraine and speculation that Chinese policy makers will expand stimulus. Also, gain was aided by bets the Fed won't raise rates earlier than expected after slowdown in the US retail sales. The MSCI Asia Pacific Index added 0.3% to 147.75 after rising 2.2% the past three days.
The fears over geopolitical tensions calmed further after Russian President Vladimir Putin said his country will do all it can to stop the conflict in Ukraine. Russia shouldn't isolate itself from the outside world, Putin said in Crimea on Thursday, 14 August 2014, as Ukraine opened the door to a compromise over a humanitarian aid convoy from its eastern neighbour.
Meanwhile, buying was also supported by growing speculation that Chinese policy makers will expand stimulus after drop in China's credit expansion last month. China's total social financing (TSF) aggregate, a broad measure of liquidity in the economy, fell to 273.1 billion yuan (US$44.34 billion) in July, about one-seventh of that in June and the lowest monthly reading since October 2008 in the depths of the global financial crisis.
Also, the gain was aided by reinforced speculation that the Federal Reserve won't rush to raise rates after slowdown in the US retail sales. Fed Chair Janet Yellen has said officials will keep the central bank's benchmark interest rate low for a considerable time after its bond buying ends. The Fed has kept short-term US interest rates near zero since December 2008, bolstering demand for emerging-market assets as investors seek higher yield. Among Asian bourses
Nikkei ups 0.66%
Also Read
Japanese share market advanced for fourth consecutive day on tracking a stronger lead from offshore markets overnight and yen weakening against major currency rivals. The benchmark Nikkei 225 index advanced 100.94 points to close at 15314.57, while the Topix index added 8.37 points to 1270.50.
The yen weakened 0.2% to 102.59 per dollar in the Tokyo Stock Exchange on Thursday, after falling 0.2% yesterday. A weaker yen is good for Japanese exporters, who can afford to price their goods more competitively overseas.
Export related stocks gained the most in the Tokyo. Sony Corp gained 1.1% to 1,835 yen. Suzuki Motor Corp climbed 1.7% to 3,341.5 yen. Canon Inc., world's biggest camera maker, added 0.8% to 3,399 yen.
Obayashi Corp added 3% to 801 yen on a report the general contractor has created robots for checking building excavation work.. The Nikkei Newspaper said the company plans to cut costs 30% by replacing half its skilled workers with the robots as early as 2015.
Aiful Corp. tumbled 16% to 447 yen after the consumer lender said quarterly profit plunged 71% to 3.6 billion yen in the three months through June. Nomura lowered the company's share-price outlook to 240 from 300 yen after the results.
Australia market ups 0.6% on strong results by companies
Australian stock market closed higher on the back of solid corporate results from local companies, including market heavyweight Telstra and some of the major banks. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose by 0.6% to 5548.50 and 5542.90, respectively.
Shares of Telstra rose 2.2% to A$5.56 after chief executive David Thodey announced the return of cash to shareholders for the second time this year with a A$1 billion share buyback and a bigger dividend. He said that even after the payout, the company would be keeping a cash stockpile of up to A$5.1 billion. Telstra reported a 14.3% increase in its full-year, after-tax profit to A$4.28 billion. Revenue increased by 3.5% to A$25.3 billion
Crown Resorts shares jumped 5.6%% to A$15.66 after the gaming company reported a massive 65.7% rise in net profit after tax of A$655.8 million, as strong earnings in the gambling hub of Macau continued to offset weakness at its hotels and casinos in Australia..
Fairfax Media shares climbed up 6.2% to A$0.94 after the company reported a turnaround annual profit of A$224.4 million, despite a 3% decline in revenue, and flagged investments in education, travel, health and lifestyle with its A$68 million net cash.
China stocks fall on growth concerns
Mainland China stock market closed lower on growing concern that a sustained recovery may be at risk in the second half of the year despite government efforts to shore up growth. The benchmark Shanghai Composite lost 0.74%, or 16.41 points, to close at 2206.47. Turnover decreased to 141.70 billion yuan from yesterday's 146.49 billion yuan.
The amount of money flowing into China's economy slowed to the lowest level in nearly six years in July, adding to fears that a sustained recovery may be at risk in the second half of the year despite government efforts to shore up growth. China's total social financing (TSF) aggregate, a broad measure of liquidity in the economy, fell to 273.1 billion yuan (US$44.34 billion) in July, about one-seventh of that in June and the lowest monthly reading since October 2008 in the depths of the global financial crisis.
Chinese banks made 385.2 billion yuan (US$62.53 billion) worth of new yuan loans in July, down sharply from 1.08 trillion yuan in June and well below expectations of 727.5 billion yuan, central bank data showed yesterday. Broad M2 money supply rose 13.5% last month from a year earlier, the People's Bank of China said in a statement on its website, lower than the forecast 14.4% rise.
Shares of material and energy sector suffered the biggest losses among 10 industry groups. Jiangxi Copper Co fell 2% to 13.67 yuan, while Aluminum Corp of China slid 3% to 3.84 yuan. Datong Coal Industry Co slid 4.2% to 6.23 yuan. Yanzhou Coal Mining Co. lost 3.2% to 7.64 yuan.
Shares of mainland property developers declined after home sales across the country fell 28% in July, the biggest monthly decline this year. The value of homes sold fell to 424.2 billion yuan (US$69 billion) last month from 591.2 billion yuan in June, according to the difference between the National Statistics Bureau's data for the first seven months and the first half of the year. The value of sales in the first seven months fell 10.5% to 2.99 trillion yuan from a year earlier, the data showed. Among realty stocks, China Vanke lost 2% to 9.36 yuan. Gemdale Corp slid 1.6% to 9.13 yuan. Poly Real Estate Co dropped 1.4% to 5.70 yuan.
Hang Seng falls 0.36% at close
Hong Kong share market closed down in volatile trade on concerns local economic growth likely slowed in the second quarter, with Tencent, Chinese banks, and petrochemical shares being the major losers. The benchmark Hang Seng Index declined 88.98 points to close at 24801.36. Market turnover stood at HK$81.09 billion, up from yesterday's HK$74.45 billion.
Gross domestic product (GDP) in the second quarter was estimated to have expanded 2.4% from a year earlier, according to the reports. The economy grew 2.5% in the first quarter. On a quarterly basis, three economists had forecasts ranging from a 0.7% contraction to 0.4% growth. The economy slowed to a seasonally adjusted 0.2% in the January-March quarter versus the fourth quarter of 2013.
The growth slowdown fears arose after Hong Kong's exports to key markets were weak at the start of the year. Now consumption the biggest contributor to Hong Kong's economy is set to prove a drag. Retail sales have fallen for a fifth consecutive month due to declining tourist arrivals and overall spending from both domestic and mainland shoppers. Hong Kong's Retail Management Association has revised down the city's 2014 retail sales growth to 5% from 12%.
Shares of casino companies rose, after Japan government cabinet has already set up a task force to legalise casino gambling and build a major casino in Tokyo before the 2020 Olympics. Dynam Japan (06889) soared 10% to HK$22.35 as the company said earlier that it plans to run casinos in the country. Other gaming players were also higher. Both Sands China (01928) and Galaxy Ent (00027) added 1% to HK$53.15 and HK$60.55. SJM (00880) and Wynn Macau (01128) shot up 3.4% to HK$20.1 and HK$31.5. Melco (00200) and Melco Crown (06886) put on 2% to HK$21.75 and HK$77.4. MGM China (02282) advanced 1.5% to HK$26.35.
Tencent (00700) announced strong earnings yesterday, triggering target price upgrades from a slew of investment research houses. But the stock dipped 2.3% to HK$130.1.
Nifty settles at three-week high
Indian stock market extended gains for the fourth straight session as inflation dropped to five-month low level and foreign capital inflows rose. The S&P BSE Sensex was up 184.28 points or 0.71% to 26,103.23, its highest closing level since 25 July 2014. The CNX Nifty was up 52.15 points or 0.67% to 7,791.70, its highest closing level since 24 July 2014.
Stocks of state-owned ONGC ended 2.03 higher after company yesterday posted 19% rise in net profit for the April-June quarter. Shares of Tata Steel in two-way movements, gained 1.23% despite company's consolidated net profit plunged by 70.38% to Rs 337.33 crore in the April-June quarter. Shares of Lanco Infratech and Adani Power gained up to 5.05% following a mega deal for a power plant between the two companies.
The annual rate of inflation based on monthly Wholesale Price Index (WPI) eased to 5.19% for July 2014, from 5.43% for June 2014, data released by government today, 14 August 2014 showed. Meanwhile, the government revised upwards WPI inflation for May 2014 at 6.18% from 6.01% reported earlier.
Foreign Portfolio Investors (FPIs) bought Indian shares worth a net Rs 718.27 crore on Wednesday, as per provisional data from the stock exchange.
The Indian stock exchanges will remain closed on Friday on account of Independence Day.
Elsewhere in the Asia Pacific region-- South Korea's KOSPI index rose 0.04% to 2063.22. Taiwan's Taiex index closed marginal 0.01% down at 9230.61. Malaysia's KLCI rose 0.2% to 1861.58. Indonesia's Jakarta Composite index fell 0.25% to 5155.55. New Zealand's NZX50 rose 0.15% to 5062.41. Singapore's Straits Times index fell 0.2% to 3294.83.
Powered by Capital Market - Live News
