China's Purchasing Managers' Index for manufacturing was at 48.3 in April, compared with 48 in March, according to a preliminary reading published by HSBC Holdings Plc and Markit Economics today, 23 April 2014. A figure below 50 signals a contraction.
Among Asian bourses, Japanese share market finished the session sharp higher, gaining back ground lost in the prior session, as investors chased for bargain buying on tracking another day of gains on Wall Street overnight and on slight depreciation of yen against the US dollar. The Nikkei 225 index closed 1.1% higher to finish at 14546.27, while the Topix index of all first-section issues rose 0.97% to 1,173.81.
Tokyo shares commenced trading with firm footing on Wednesday, driven by tracking merger-driven gains in Europe and on Wall Street overnight. Meanwhile, buying pressure accelerated on tracking sharp rally in railway and hotels giant Seibu Holdings on its return to the Japanese market. Shares of Seibu Holdings added a pleasant surprise to the market with a solid gain in their first day of re-listing, restoring some faith in the IPO market after some recent high-profile disappointments.
Exporters were generally higher in Tokyo, helped by the weaker yen. A weaker domestic currency enables them to make their prices more competitive overseas. Denso gained 2.3% and Advantest rose 3.1%. SoftBank added 2.3%. Sumitomo Metal Mining rose 4.2% as nickel futures hit a new 2014 high.
JX Holdings, Japan's largest petrochemical refiner, initially fell after the firm cut its net profit forecast for the fiscal year that ended March 31 by 34%. But it later recovered to post a 0.6% gain as the company kept its dividend guidance intact.
JSR ended down 5.5% after slashing its sales and profit views for the same period to well under the consensus forecasts.
Seibu Holdings Inc., operator of Japan's biggest hotel chain, jumped 11% to 1,770 yen on its trading debut in Tokyo after pricing its public offering at the bottom of its planned range.
Resona gained 2.5% to 493 yen after Einhorn's Greenlight said it bought the stock at 547 yen per share and described the Tokyo-based bank as cheap on both an absolute and relative basis.
The average price of regular gasoline in Japan this week stood at Y164.2 ($1.60) per litre, or $6.08 per gallon, unchanged for the second straight week, data from the Agency for Natural Resources and Energy released on Wednesday showed.
In Australia, Australian share market finished the session near six-year highs today, as risk appetite buying across the broad, with shares in technology, financials, retailers, consumer goods and energy companies led rally. The benchmark S&P/ASX200 rose by 0.7% from prior day to finish at 5517.80, while the broader All Ordinaries added 0.64% to 5502.20.
Sydney shares commenced trading with firm footing on Wednesday, driven by tracking merger-driven gains in Europe and on Wall Street overnight. Meanwhile, buying pressure accelerated on calming concerns about the Reserve Bank prominent interest rates hike speculation after consumer price inflation for the March quarter came in lower than expected at 0.6%. This took the annual rate of growth for headline inflation to 2.9%, below economists' expectations of 3.2% and within the Reserve Bank's 2-3% target band. A softer-than-forecast reading has therefore given the central bank some breathing room and left it open to keep the cash rate on hold for some time.
Financial sector went up 0.9%, with top banks and financials led rally after a surprisingly low inflation report. ANZ Banking Group added 0.9% to A$34.59, Commonwealth Bank of Australia 1.3% to A$79.01, Westpac Banking Corp 0.9% to A$35.62 and National Australia Bank 0.5% to A$35.67.
Materials sector jumped 0.4%, on the back of firmer mining stocks despite China's downturn in manufacturing easing. Resources giant BHP Billiton was up 0.5% to A$38.20, while Rio Tinto rose 0.1% at A$62.79. Fortescue Metals Group declined 1.3% to A$5.25 after its production figures missed market expectations. Newcrest jumped 1% to A$10.12 after it reported an 11% fall in its March quarter gold production but maintained its full-year guidance.
In New Zealand, equities on the New Zealand stock market rose, as a front bench Labour Party MP quit, stoking speculation the incumbent National-led government will return for a third term. Contact Energy, Vector and MightyRiverPower gained. Xero led the advance.
Labour MP Shane Jones, who ran for the party's leadership last year, has quit politics to take up a Pacific economic ambassador post created for him by the National-led government, a move that may weaken Labour's prospects in this year's election. The opposition parties want to further regulate New Zealand's energy market, which has spooked investors from the sector.
By the provisional closing, the NZX 50 Index rose 37.983 points, or 0.7%, to 5142.922. Within the index, 30 stocks rose, 11 fell and nine were unchanged.
New Zealand dollar rose to a two-week high against its trans-Tasman counterpart after Australian inflation came in below expectations, leaving the Reserve Bank of Australia with room to keep interest rates on hold, while the local central bank prepares to hike rates tomorrow. The kiwi rose as high as 92.65 Australian cents, the highest since April 10, trading at 92.53 cents from 91.72 cents yesterday. The local currency traded at 85.89 US cents from 85.97 cents earlier and 85.78 cents yesterday.
In China, Mainland China share market declined amid concerns about a potential share oversupply and after a private manufacturing report signaled persisting weakness in the mainland economy. The benchmark Shanghai Composite Index closed 0.26% down at 2067.38, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, declined 0.1% to 2194.67.
The selloff in the Shanghai triggered on renewed concerns about negative impact of the anticipated resumption of new-share sales after an announcement by the securities regulator that 18 more companies have been given the green light to go public on domestic exchanges, bringing the total number of firms that are ready for initial public offerings to 46. Meanwhile, investors' sentiments hammered further after latest data indicated Chinese manufacturing activity slowed for the fourth-straight month in April. The HSBC/Markit flash Purchasing Managers Index (PMI), which measures China's factory activity, rose to 48.3 points in April from 48 points in March, which was an eight-month low. A reading below 50 suggests a contraction in activity.
Among SSE sectors, 7/10 sectors of the SSE index declined, with telecommunication services sector was top loser in the SSE sectoral peers, with fall of 1.4%, while industrial issue was top gainer, with rise of 0.2%. Elsewhere, consumer discretionary sector was down 1%, information technology down 0.5%, healthcare down 0.5%, financials down 0.3% and materials down 0.2%.
Chinese government will not change its economic policy bias as growth is still within the target range and will not resort to short-term stimulus measures as the economic volatility is temporary, the National Development and Reform Commission said. Q1 economic growth slowed but it is only 0.1%age point lower than 7.5%. So major indicators are still within reasonable range, said Li Pumin, the NDRC's spokesman.
In Hong Kong, shares in the city's market finished deeply in red territory a after flash PMI reading suggests China's manufacturing sector is on track to record a fourth straight month of contraction. The benchmark Hang Seng index declined 0.97% to 22509.64, while Hang Seng China Enterprises Index retreated 1.25% to 9905.63.
Among the HK 50 blue chips, 41 fell and 8 rose, with remaining one stock closed steady. China Overseas Land & Investment declined 3.5% to HK$19.34, contributing 9-points losses to the benchmark Index and becoming the worst-performing blue chip. China Resources Power Holdings Co advanced 2.5% to HK$19.46, contributing 3-points gains to the benchmark Index and becoming the best-performing blue chip, on news that Fu Yuning would replace Song Lin as chairman of China Resources Group.
Shares of Chinese property developers and coal producers led losses in Hong Kong as a fourth month of contraction for mainland factory activity added to concern the nation may miss its economic-growth goal. China Overseas Land declined 3.5% to HK$19.34. China Resources Land Ltd. slipped 1.7% to HK$15.98. China Coal Energy Co. dropped 3% to HK$4.25.
China Mobile fell 2.6% to HK$70 after mobile carrier said its net income slid 9.4% to about 25.24 billion yuan ($4 billion) in the first quarter. China Unicom (00762) fell 3.1% to HK$10.
In India, Volatility ruled the roost in late trade as the key benchmark indices trimmed gains after extending intraday gain, as traders rolled over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expired today, 23 April 2014. The stock market remains closed tomorrow, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
As per provisional closing, the S&P BSE Sensex was up 118.67 points or 0.52% at 22,877.04. The index jumped 154.15 points at the day's high of 22,912.52 in late trade, a lifetime high for the barometer index. The index rose 21.76 points at the day's low of 22,780.13 in early trade. The CNX Nifty was up 33.55 points or 0.49% at 6,848.90. The index hit a high of 6,861.60 in intraday trade, a lifetime high for the index. The index hit a low of 6,820.75 in intraday trade.
Mahindra & Mahindra (M&M) rose 1.34%. M&M during market hours today, 23 April 2014, said that the company's agri division has signed a joint venture agreement with HZPC, Holland, one of the leading innovative companies in the world in potato breeding, seed potato growing and seed potato trading to offer the best quality seed potatoes to farmers within and outside India. Mahindra will hold 60% stake and HZPC the remaining 40% stake in the new joint venture company.
Elsewhere in the Asia Pacific region, Malaysia's KLSE Composite added 0.05%. Taiwan's Taiex index fell 0.2%. South Korea's KOSPI index was down 0.2%. Indonesia's Jakarta Composite Index dropped 0.1%. Singapore's Straits Times index lost 0.71% on profit-taking after it closed at its highest since June 2013 in the previous session. .
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