The U.S. consumer-price index for August declined 0.1% from July, data showed on Wednesday. Excluding food and energy components, core prices are up 1.8% from a year earlier, raising market speculation that the Fed wouldn't be too worried about the pace of price increases yet.
The U.S. Federal Reserve has started its two-day policy meeting on Wednesday. The US Federal Reserve will decide later today in the global day whether to lift interest rates which have been close to zero for the last seven years. Investors around the world are guessing that the Federal Open Market Committee (FOMC) will signal an initial a measured tightening soon, but hold off a September rate hike.
Among Asian bourses
Australia market extends gain
The Australian share market ended higher for second straight session, following global rally in equity markets overnight, with nine out of ten ASX sectors higher, led by shares of major energy, miners, technology, and big banks. The benchmark S&P/ASX 200 index advanced 47.90 points, or 0.94%, to 5146.80 points. The broader All Ordinaries index ended up 47.60 points, or 0.93%, at 5171.20.
Energy stocks were the strongest for the day, on the back of an almost 6% surge in oil prices. Brent crude oil price rose above $50 per barrel for the first time in a week on Thursday. The U.S. West Texas Intermediate (WTI) crude futures were trading at $47.21 per barrel, up 6 cents from their previous close, while Brent rose to a high of $50.14 before retreating back to 49.98 a barrel, though still up 23 cents. Santos gained 2% to A$5. Woodside Petroleum 2.9% to A$29.95, Oil Search 1.9% to A$7.57, and Origin Energy 3.5% to A$7.31.
Mining stocks were also higher, particularly among gold producers after the precious metal rallied to its highest level in a week. Gold was trading near its highest in a week on Thursday, adding to overnight gains from its biggest jump in nearly a month. Spot gold had ticked up 0.2% to $1120.95 an ounce at 0638 GMT, near a one-week high of $1124.30 reached in the previous session. The metal gained 1.3% on Wednesday in its biggest daily jump since Aug. 20. Newcrest Mining rose 3.6% to A$11.81. Diversified miner BHP Billiton was up 2.8% to A$24.65 and Rio Tinto 1.4% to A$52.01.
Nikkei rallies on yen depreciation, offshore lead
The Japanese share market finished the session higher, following rally on the offshore markets overnight, brushing off disappointing trade data and Standard & Poor's Japan's long-term credit rating cut. The increment was underpinned on yen depreciation against greenback and calming fears of the Federal Reserve interest rates hike after sluggish U.S. inflation data. Total 30 out of Topix's 33 industry groups ended higher, with Securities & Commodities Futures, Iron & Steel, Information & Communication, Other Financial Business, Electric Appliances, and Mining issues led gainers. The Nikkei Stock Average advanced 260.67 points, or 1.43%, to end at 18432.27 points. The broader Topix index jumped 1.31%, or 19.31 points, to 1491.91 at the close in Tokyo.
Japan's exports rose 3.1% in August from a year earlier, down from 7.6% in the preceding month. Imports fell 3.1% on-year. This translates into a monthly deficit of 569.7 billion yen a year earlier
Standard & Poor's cut Japan's long-term credit rating one level to A+ on Wednesday, saying it sees little chance of the government's strategy turning around the poor outlook for economic growth and inflation over the next few years. The move came a day after the Bank of Japan refrained from boosting record asset purchases, betting there will be resumption in growth and inflation. That's left the onus on Prime Minister Shinzo Abe and his Cabinet to consider a fiscal stimulus package to boost what evidence indicates is a lackluster recovery in the second half of the year so far.
Shares of export-oriented companies attracted hefty buy orders in Tokyo, with industrial machinery and electronics makers leading advances. Pneumatic control engineering firm SMC Corp rose 5.8%. Sensor maker Keyence Corp. gained 6.5%. Electric motor maker Nidec Corp. added 4.7%. Fanuc rallied 3.4%, while Fast Retailing and SoftBank forged higher by 2.2 and 1.9% respectively.
Securities and steel producers were also among the day's top performers, with Nisshin Steel and Nippon Steel and Sumitomo Metal up 4.7 and 3.1% respectively, while Nomura Holdings gained 3.7%.
Sensor maker Keyence Corp. jumped 6.6% and air-conditioner maker Daikin Industries gained 4.2% after BNP Paribas SA rated the stocks a buy.
Omron Corp added 4.4% after an electronic components maker said it will buy California-based robotics company Adept Technology Inc after both companies' boards approved the deal.
Shizuoka Bank sank 2.9% after Credit Suisse Group AG initiated coverage on the regional lender with an underperform rating.
China market tumbles after rollercoaster ride
The Mainland China's stock market finished the session steep lower, due to heavy selloff in last half hour of trading, triggered on concern anti-corruption crackdown extends deeper into the financial industry. The Shanghai Composite Index tanked 2.1%, or 66.20 points, to 3086.06 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.48%, or 24.94 points, to 1658.42. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, edged up 0.37%, or 7.05 points, to close at 1933.30.
The major index bounced back from morning losses to rise above 3,200 points in the early afternoon, before ending sharply lower at below 3,100 points, evidence of a lack of investor confidence. Thursday's sharp recession came after the anti-corruption watchdog's announcement on late Wednesday that the assistant chairman of China's securities watchdog, the China Securities Regulatory Commission, Zhang Yujun, was being investigated for "serious violations of the law." Three senior executives from China's top securities broker, CITIC Securities Co, are also being investigated for alleged insider trading and leaking inside information, police announced earlier Tuesday.
All 10 SSE industry groups ended down, with consumer staples issue suffered the most, down 3.6%, followed by consumer discretionary (down 3.5%), healthcare (down 3.2%), material (down 2.4%), energy (down 2.3%), utilities (down 2.2%), financials (down 2%), industrials (down 1.7%), telecommunication services (down 1.4%), and information technology (down 0.2%).
Citic Securities plunged 4.2% following news from Tuesday that the brokerage's president and two other executives are being probed for suspected insider trading and leaking information.
Hong Kong market sinks in late trade
Hong Kong stock market ended down in volatile trade, on tracking slump in the Mainland A-share market today. The benchmark Hang Seng Index (HSI) opened 206 points higher at 22,172, reclaiming the 22,000 level. But the reversal of Shanghai market in afternoon trade dragged the index down by nearly 200 points. The Hang Seng Index dropped 112.03 points, or 0.51%, at 21854.63 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, grew 59.46 points, or 0.6%, to 9964.17 points. Turnover increased to HK$89.9 billion from HK$83.3 billion on Wednesday.
Shares of beer producers inclined after AB InBev made offer for SABMiller in a potentially biggest deal in brewing industry history. Goldman Sachs Group Inc. said a deal between SABMiller Plc and Anheuser-Busch InBev NV is a game changer for China's beer industry if it gets completed. Tsingtao Brewery (00168) surged 8.6% to HK$37.2. China Resources (00291) jumped 4.7% to HK$25.55. San Miguel HK (00236) leaped 23% to HK$1.57.
Shares of aviation counters declined after Nymex oil jumped 5.7% to US$47.15 overnight. China East Air (00670) dipped 3.9% to HK$4.31. Air China (00753) slipped 2.3% to HK$6.07. But Cathay Pacific (00293) added 1.7% to HK$14.68 on investment rating upgrade by research house.
Shares of insurers went up after BofAML is bullish on Chinese insurers and raised its valuations for the players. China Taiping (00966) gained 5% to HK$24.5. PICC P&C (02328) shot up 3% to HK$15.5. CPIC (02601) added 3.2% to HK$30.35.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 1.4% to 8445.50. South Korea's KOPSI rose 0.1% to 1976.49. New Zealand's NZX50 rose 0.5% to 5694.23. Singapore's Straits Times index rose 0.9% at 2895.81. Indonesia's Jakarta Composite index added 1.1% to 4378.38. Malaysia's KLCI rose 2.1% to 1681.54. Indian stock market closed for holiday
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