Asia Pacific share market finished firmly higher on last trading session of the week ended Friday, 19 September 2014, supported by cheer on Wall Street overnight and as Scotland voted to stay in the U.K. in a referendum on independence. The MSCI Asia Pacific Index advanced 0.3% to 144.45.
On Wall Street, both the S&P 500 and the Dow Jones Industrial Average pushed to record highs on Thursday after the Labor Department said American jobless claims fell by 36,000 to 280,000 in the period ended Sept. 13. Meanwhile, buying spree also underpinned after the Federal Reserve this week renewed its pledge to keep interest rates near zero for a considerable time after its bond-buying program ends, probably next month.
Global markets got a reprieve on Friday as Scotland voted against referendum on independence from the United Kingdom, a prospect that had been tipped to spark chaos. The Prime Minister David Cameron said he would stick with his promise to cede more policy-making powers for Scotland after a no vote. He also pledged a constitutional shakeup of the U.K. that would take into account how England and Wales are governed.
Among Asian bourses
Aussie shares rise for second day
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Australian share market closed higher for second straight day, as gains in shares of property trusts, financials, retailers and technology companies were more than offset by losses in materials and resources companies. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.3% to 5433.10 and 5437.30, respectively. Turnover was stronger with 2.10 billion shares worth of A$5.18 billion traded today. For the week, the benchmark S&P/ASX 200 lost 1.8%, while the broader All Ordinaries shed 1.7%.
The financial stocks advanced, with top four big banks being major gainers. Commonwealth Bank of Australia added 0.3% to A$77.81, Westpac Banking Corp 0.4% to A$33.17, and ANZ Banking Group 1.6% to A$31.92. National Australia Bank, which has direct exposure to the UK, added 2.1% to A$33.90.
Materials and resources stocks declined, with resources giant BHP Billiton declining 0.6% to A$35.48, while main rival Rio Tinto erased 0.6% to A$61.59. Fortescue Metals Group declined 4.3% to A$3.76. Arrium shares tumbled 6.3% to A$0.375, extending yesterday's 29.2% slump. The stock was dumped after it came out of a trading halt on Thursday following the completion of the institutional part of a A$754 million capital raising.
Alacer Gold Corp shares soared 11% to A$2.13 after OceanaGold Corp said it had discussed a possible merger. OceanaGold gained 3.1% to A$2.64.
Nikkei rises to seven-year high on weaker yen
Japanese share market finished the session at highest level in nearly seven-years, boosted by Prime Minister Shinzo Abe pledge to undertake pension fund reform and as the yen weakened to lower 109-level against the US dollar. The benchmark Nikkei rose 1.58%, or 253.60 points, to finish at 16321.17, its best finish since November 2007, while the Topix index of all first-section shares jumped 1.06%, or 14 points, to 1331.91. The index added 0.7% this week to end at its highest level since November 2007.
Japanese Prime Minister Shinzo Abe said on Friday he aims to reform the country's $1.2 trillion public fund as soon as possible. Earlier this month, Abe appointed Yasuhisa Shiozaki, a proponent of diversifying the assets of the Government Pension Investment Fund (GPIF) away from government debt, to the post of health minister, whose job includes supervising the pension fund.
The yen depreciated to six-year low of 109.14 against the greenback, compared with 108.68 yen on Thursday. The weaker yen benefits Japanese exporters by increasing their overseas earnings in yen terms while giving them scope to price goods more competitively in foreign markets.
Export related stocks extended gain, on the back of yen weakening against the greenback, with Honda Motor Co rising 1.2% to 3,756 yen. Canon Inc., the world's biggest camera maker, gained 1.4% to 3,591 yen. Fast Retailing Co. rose 3.6% to 36250 yen. Fanuc Corp. gained 2.5% to 19320 yen. TDK Corp. rose 5.4% to 6240 yen. Shin-Etsu Chemical Co. rose 3.6% to 7150 yen.
IHI jumped 5.1% to 540 yen, after Credit Suisse raised its rating on the stock to outperform from neutral and increased its price target forecast to 600 yen from 450 yen.
Shanghai Composite rises 0.58%
Mainland China share market advance for third consecutive session, after Chinese central bank boosting its stimulus program and as Premier Li Keqiang pledge to support for small firms by cutting their taxes, increasing their subsidies and encouraging banks to step up lending to them. The benchmark Shanghai Composite index climbed up 13.52 points, or 0.58%, to finish at 2329.45. The CSI 300 index added 16.55 points, or 0.69%, to 2425.21. For the week, Shanghai Composite and CSI 300 index were down 0.1% and 0.5%, respectively.
The media reports stated that the People's Bank of China on Tuesday offered a total of 500 billion yuan (US$82 billion) of liquidity to the country's five biggest banks through a three-month standing lending facility, a sign that authorities are stepping up efforts to shore up a faltering economy. The SLF was first introduced in 2013 as a supplement to other monetary policy tools. Morgan Stanley said the liquidity injection was equivalent to a 50-basis-point cut in reverse requirement ratio with a three-month duration.
Premier Li Keqiang said on Wednesday that the Central Government will boost its support for small firms by cutting their taxes, increasing their subsidies and encouraging banks to step up lending to them. Companies with monthly sales revenues between 20,000 yuan and 30,000 yuan (US$3,258 and US$4,887) will have their tax bills waived, Li told a weekly meeting of the State Council. Banks will be encouraged to come up with plans that focus on lending to small and micro-sized companies, and the government will lend its support to firms by buying their goods and services, he said. The pledge to support companies came as China's economy appeared to be stumbling again.
Stocks of shipbuilders and aviation were key outperformers in the Shanghai market today. China Shipbuilding Industry spiked 4.2%, China CSSC Holdings surged 8.1% and AVIC Heavy Machinery soared the maximum allowed 10%.
Shares of drug makers also ended higher after China's commerce ministry said last week it would push for prescription drugs to be sold at pharmacies instead of through the hospitals. Shanghai Pharmaceuticals put on 3.4% and Jointown Pharmaceutical Group 2.7%.
Hang Seng ends 0.57% up
Hong Kong share market ended higher, following a strong lead from the Wall Street overnight and as Scotland voted against independence from the United Kingdom. The Hang Seng Index ended 137.44 points, or 0.57%, down at 24306.16. Market turnover was HK$94.72 billion, compared to the yesterday's turnover of HK$70.19 billion.
Shares of Hong Kong-listed British banks advanced as results from Scotland's independence referendum showed Scottish voters opted to stay in the UK. HSBC Holdings PLC rose 1.7% to HK$84.20 and Standard Chartered PLC jumped 0.9% to HK$156.40.
Insurers were mixed. China Pacific Insurance Group Co jumped 0.2% to HK$28.20 after state-media reports said the firm is considering an equities incentive mechanism for its executives and employees. Meanwhile, Ping An Insurance Group Co closed 0.1% down at HK$62 after reports said regulators may allow the life insurer to issue the country's first preferred shares.
Macau casino operators rose for a second day. Sands China rose 3.6% to HK$44.65, MGM China Holdings 3.8% to HK$23, Wynn Macau 6% to HK$26.45 and Galaxy Entertainment Group 3% to HK$51.35.
Tencent (00700) rose 1.9% to HK$125.2 after Alibaba set its IPO price at the higher end of the pricing range.
Sensex provisionally settles flat
Indian stock market closed virtually flat after swinging between positive and negative zone alternately in intraday trade. As per provisional figures, the S&P BSE Sensex was down 6.85 points or 0.03% at 27,105.36. The CNX Nifty was almost unchanged at 8114.40, as per provisional figures.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra gained after the company announced that it will work together with Bosch Software Innovations to develop an ecosystem to enable innovative solutions for the connected world and connected enterprises. HCL Technologies rose after the company informed the stock exchanges about an announcement by North Carolina state government of HCL Technologies expanding its presence in Wake County in United States. Infosys rose after the company announced a global partnership with Huawei and expansion of its partnership with Hitachi Data Systems and Microsoft Corp.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index advanced 0.04% to 9240.45. South Korea's KOSPI index added 0.3% to 2053.82. Singapore's Straits Times index rose 0.24% to 3305.05. Indonesia's Jakarta Composite index added 0.37% to 5227.58. Malaysia's KLCI gained 0.23% to 1849.49. New Zealand's NZX50 jumped 0.53% to 5181.35.
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