Regional investors commenced trading with firm footing today on tracking a positive lead from Wall Street overnight where an upbeat US labour market report propelled the S&P 500 and Dow Jones Industrial Average to fresh record highs. The government reported that U.S. employers added 288,000 workers to their payrolls in June and the unemployment rate fell to 6.1%. The U.S. economy is now creating about 231,000 jobs each month in 2014, compared to roughly 194,000 a month last year. The jobs report is the latest piece of data to show the world's biggest economy continues to improve steadily.
Meanwhile, risk sentiments encouraged further after better than forecast service and manufacturing PMI data out of China reinforcing signs that the broader economy is stabilizing. Premier Li Keqiang said last month authorities will ensure a minimum growth rate of 7.5%. Beijing has stepped up policy support in recent months to give a lift to economic growth, which dipped to 18-month low in the first quarter. Such measures include targeted reserve requirement cuts for some banks, quicker fiscal disbursements and hastening construction of railways and public housing projects.
Among Asian bourses
Australia stocks extend gain to third day
Australian share market extended winning streak for third consecutive day, as risk appetite was boosted up after the U.S. reported strong hiring for June. All ASX sectors improved, with shares in materials, financials and consumer discretionary players leading rally. The benchmark S&P/ASX200 and the broader All Ordinaries each grew 0.6% to 5525 and 5511.80, respectively. For the week, the S&P / ASX 200 and the broader All Ordinaries Index both gained 1.5%.
Also Read
Shares of material and resources companies continued northward journey on tracking strength in the iron-ore prices. Resources giant BHP Billiton climbed up 0.91% to A$37.57, while Rio Tinto rose 0.3% to A$62.65. Iron ore miner Fortescue Metals Group was up 1.3% to A$4.69.
Woodside Petroleum (WPL) shares rose by 0.5% to A$41.83 after Australia's second largest oil and gas producer announced its plan to purchase a 25% interest in exploration permits off the coast of Morocco.
Australian dollar declined against greenback and other major currencies after RBA governor Glenn Stevens said on Thursday the dollar was more than a few cents overvalued and repeated his caution to property investors that house prices can fall. Around late afternoon, the Australian dollar was quoted at 0.9362 against US dollar.
Nikkei hits five month high
Japan share market advanced today, buoyed by an increasingly positive outlook for growth in both the United States and China. Meanwhile, yen depreciation against greenback also supported the momentum. The benchmark Nikkei 225 index rose 0.58% to finish at 15437.13, its best close since 23 January, while the Topix index of all first-section shares climbed 0.52% to 1285.24.
The US dollar surged after strong U.S. jobs data, jumping to 102.20 yen in New York on Thursday from 101.88 yen in Tokyo earlier in the day. On Friday in Tokyo the unit held up, sitting at 102.05 yen. A weaker yen is positive for Japanese exporters as it makes them more competitive abroad and increases profits when repatriated.
Honda Motor, which counts North America as its biggest market for sales, rose 1% to 3,570 yen. Toyota Motor Corp., the world's largest carmaker, added 0.5% to 6,201 yen. Consumer-electronics manufacturer Sony Corp. increased 1.4% to 1,720 yen.
Panasonic rose 0.9% to 1,255 yen. The company said it's negotiating details of the U.S. battery plant with Tesla, though the amount of funding is yet to be decided. Asahi newspaper reported Panasonic will invest over 20 billion yen in the electric-car maker.
Shares of Seven & i Holdings Co gained 2% to 4447 yen after its March-May quarterly results showed an on-year operating profit increase of 5% to Y77.4 billion--exceeding guidance by about Y3.5 billion.
FamilyMart ended flat after falling initially after announcing an operating profit fall of 11% on year to Y9.0 billion in its first quarter. Still, earnings are largely on track to meet full-year guidance, said Nomura Securities analyst Masafumi Shoda.
China stocks fall for the first time in five days
Mainland China share market declined for the first time in five consecutive sessions. Investors cashed out some profit off the table after the benchmark indices climbing more than 1% this week after data showed China's manufacturing expanded in June at the fastest pace this year and a services index increased to the highest level since March 2013. The benchmark Shanghai Composite closed 0.19% down from prior day to 2059.37. Trading turnover decreased to 83.59 billion yuan from yesterday's 96.18 billion yuan.
Among SSE sectors, 8/10 sectors of the SSE index declined, with healthcare sector leading the sectoral retreat, with drop of 1.15%, followed by telecommunication down 0.6%, materials down 0.6%, industrials down 0.4%, energy down 0.3%, consumer discretionary down 0.2% and technology down 0.16%.
Port operators declined after rallying yesterday following State Council approval for an international transportation and logistics center in Dalian city. Rizhao Port dropped the most since September, trimming its advance this week to 12%. Dalian Port PDA Co. tumbled 10%, paring its weekly gain to 21%.
Shares of Jiangsu King's Luck Brewery JSC Ltd. climbed 10%, after soaring yesterday by the maximum 44% in its first day of trading in Shanghai.
Hong Kong stocks mixed
Hong Kong shares closed mixed, as investors were opting for profit taking after the benchmark index climbed to highest level since December 2013 early today. The benchmark Hang Seng Index closed 0.06% higher at 23546.36 after fluctuating in and out of the neutral line. The gauge gained 1.4% for the week, its biggest such advance in seven weeks. Trading turnover decreased to HK$53.55 billion from yesterday's HK$56.57 billion.
Among the HK 50 blue chips, 23 fell and 22 rose, with five stocks remaining steady. China Resources Land advanced 3.3% to HK$15.16, contributing 3-points gains to the benchmark Index and becoming the best-performing blue chip.
CNOOC declined 2.6% to HK$13.68, contributing 20-points losses to the benchmark Index and becoming the worst-performing blue chip. Credit Suisse cut the energy explorer's equity rating to underperform from neutral, and reduced its target price to HK$11 from HK$12.60.
Shares of Mainland developers continued northward move after Barclays Research's bullish comments. Barclays Plc said government easing of housing curbs will boost shares in the sector. AllianceBernstein said it didn't see strong evidence of a widespread property market bubble on the mainland. China Resources Land rose 3.3% to HK$15.16. Shimao Property Holdings, a mainland developer controlled by billionaire Hui Wing Mau, jumped 5.4% to HK$16.54. Guangzhou R&F Properties Co, a builder in the southern Chinese city, rose 2.7% to HK$10.50. China Vanke (02202) added 8% to HK$15.8.
Shares of Casino players advanced, led by Galaxy Entertainment, the casino operator controlled by billionaire Lui Che-woo, with gain of 2.6% to HK$66.45 after HSBC raised its rating on the stock to overweight from neutral on gains in market share and its strong long-term outlook, saying Macau gaming stocks are still under-owned. Sands China increased 2.4% to HK$61.15.
Sensex, Nifty attain record closing high
Indian benchmark indices edged higher on the last trading session of the week after comments from Finance Minister Arun Jaitley that there is no cause to panic about the possibility of higher inflation. A decline in crude oil prices aided gains on the domestic bourses in what was a volatile trading session. The S&P BSE Sensex garnered 138.31 points or 0.54% to settle at 25,962.06, while the CNX Nifty garnered 36.80 points or 0.48% to settle at 7,751.60, a record closing high for the index.
Most IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra (up 0.11% to Rs 2,115.70), HCL Technologies (up 0.92% to Rs 1,480.55) and Infosys (up 0.88% to Rs 3,239.15), gained. Wipro (down 1.46% to Rs 547.50) and TCS (down 0.33% to Rs 2,409.80) declined.
Bharti Airtel gained 0.34% to Rs 338.50 after the Reserve Bank of India on Thursday, 3 July 2014, advised that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can invest upto 74% of the paid up capital of Bharti Airtel under the Portfolio Investment Scheme.
Adani Ports and Special Economic Zone (APSEZ) gained 1.76% to Rs 275.15. The company said after market hours that it has signed an agreement with France's CMA CGM Group to develop a new common user container terminal at Mundra Port.
Maruti Suzuki India rose 0.49% to Rs 2,642.80. The company said during market hours that its production rose 29.64% to 79,948 units in June 2014 over June 2013. The company had on 1 July 2014 said total vehicles sales rose 33.5% to 1.12 lakh units in June 2014 over June 2013.
Elsewhere in the Asia Pacific region- Taiwan's Taiex index was down 0.17% to 950.05. South Korea's KOSPI index fell 0.07% to 2009.66.Malaysia's KLSE Composite fell 0.2% to 1884.91. Singapore's Straits Times index fell 0.03% to 3272.25. New Zealand's NZX50 added 0.42% to 5188.90. Indonesia's Jakarta Composite Index was up 0.35% to 4905.83.
Powered by Capital Market - Live News
