The regional bourses were broadly moved in narrow range on the day as global market investors took to the side-lines ahead of monthly US employment data, seen as a key variable on the direction of the Federal Reserve's policy.
The U.S. March jobs report expected to be release later on the global day in Washington. Many economists think it will show a bounce-back in hiring by employers who held off adding staff during winter.
A strong jobs report would boost confidence that that U.S. economic recovery is on track while also reinforcing expectations that interest rate hikes are in the pipeline after the Federal Reserve ends its bond purchasing program that has provided extraordinary monetary stimulus.
Risk sentiments was also bearish after the ECB did not cut interest rates or announce any new stimulus measures, as some had been hoping. The ECB decided to leave its main interest rate at a record-low 0.25%. ECB President Mario Draghi dismissed fears that consumer prices might fall in countries that use the euro common currency, but stressed that the bank was ready to act if inflation remained low.
Among Asian bourses, Tokyo stocks ended tad lower on late profit-taking as investors awaited the release of key U.S. jobs data later in the global day and talks of softer Japanese machinery orders for February releasing on upcoming Thursday, April 10. The Nikkei-225 index edged down 0.05%, or 8.11 points, to 15,063.77, while the Topix index of all first-section shares fell 0.07%, or 0.88 points, to 1,215.89.
Buying was strong among weaker-yen sensitive sectors, especially real estate developers and non-bank lenders. Sumitomo Realty & Development added 2.9%, Mitsui Fudosan gained 2.3%, Credit Saison rose 2.3% and Acom surged 4.0%. Heavy buying was also seen in Nikkei April call options, centering on a 15,500 strike price--almost 10% above Friday's closing cash market price. Call option buying is effectively a bullish play that stocks will go up over a certain period time.
In Australia, Australian stock market advanced, with materials and resources and energy blue chip players led rally. Australia's benchmark S&P/ASX200 and the broader All Ordinaries both finished 0.24% higher at 5422.80 and 5428.60, respectively.
Sydney market opened weaker and traded below the neutral line earlier in the day. However, market managed to claw back lost ground by the close of trade, as stable interest rates and a bigger than expected trade surplus buoyed confidence.
Materials and resources stocks were top winner in the Sydney market today, with resource giant BHP Billiton leading the way, up 0.6% to A$37.75 after the company announced it has secured key tax exemptions for a potential A$20 billion demerger of its non-core assets including nickel, aluminium and zinc projects. Meanwhile shares of Rio Tinto rose 0.06% to A$63.72 and Fortescue Metals Group higher by 1.1% to A$5.45.
Shares of energy players climbed up on the back of rise in crude oil prices. World oil prices rose on encouraging European economic data and a commitment by the ECB for further stimulus if it becomes necessary. Brent crude rose by US$1.36 or 1.3% to US$106.15 a barrel while US Nymex rose by US67c or 0.7% to US$100.29 a barrel. Whitehaven Coal jumped 1.6% to A$1.62, while Santos added 2% to A$13.47 and Oil Search 0.4% to A$8.45.
In China, Mainland China share market finished higher on calming jitters over liquidity crunch after drop in money market rates. Meanwhile, China's mini stimulus package designed to boost spending on railways and tax relief for struggling small businesses also buoyed risk confidence.
The benchmark Shanghai Composite Index, which tracks both A and B shares, advanced 0.74% from prior day closure to finish at 2058.83, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 0.95% to 2185.47.
Risk sentiments for cyclical assets underpinned on calming jitters over liquidity crunch after drop in money market rate. The overnight repo, a benchmark measure of interbank funding availability, traded at a weighted average of 2.78%, down 17 bps from previous session's closure. The seven-day repo rate, a gauge of interbank liquidity conditions, was quoted at 3.02% late afternoon, down 114 bps from previous session's closure.
Meanwhile, buying pressure in shanghai also supported by growing speculation the government will take additional steps to support the economy after China's State Council on Wednesday outlined a package of measures including railway spending and tax relief to support the economy and create jobs after a slowdown endangered Premier Li Keqiang's target of 7.5% growth this year.
Shares of technology companies climbed the most in Shanghai, with Sanan Optoelectronics led rally with a 5% gain. China Minmetals Rare Earth soared by 10% daily limit to 19.59 yuan.
Shares of Chinese banks and property developers shone today on calming jitters over liquidity crunch as demand for cash eased after banks met quarter-end capital requirements. China Construction Bank, the nation's second-biggest lender, rose 1% to 3.99 yuan. Huaxia Bank advanced 1.7% to 8.53 yuan. Gemdale Corp. led a gauge of developers higher, rising 1.7%.
In Hong Kong, shares in HK market declined for the first time in six sessions in row, as investors cashing out profit off the table on caution ahead of anxiously awaited U.S. employment data. The benchmark Hang Seng Index was down 0.24% to 22510.08.
Among the HK 50 blue chips, 24 fell and 23 rose, with 3 stocks remaining steady. Tencent Holdings declined 3.9% to HK$525, contributing 74-points losses to the benchmark Index and becoming the worst-performing blue chip. Hong Kong Exchanges & Clearing advanced 2.9% to HK$130.50, contributing 13-points gains to the benchmark Index and becoming the best-performing blue chip, on hopes of its mutual market access with the Shanghai bourse.
Kingsoft (03888) dipped 4.5% to HK$29.95 after it announced a convertible bond issue worth of HK$2.33bn.
SHKP (00016) edged up 0.4% to HK$99.9 after the government approved its construction plan for the site in Stubbs Road, where the former Lingnam University situated.
Country Garden (02007) plunged 5.6% to HK$3.54 on lower contract sales growth for the first quarter, and false promotions accused by the buyers of its Fujian residential project.
In Indonesia, Jakarta's Composite Index ended down 0.7% at 4857.94, a one-week low. The benchmark was up 1.9% on the week, taking its year-to-date gain to 13.7%.
A Bank Indonesia survey showed Indonesia's consumers were more optimistic in March, bolstered by expectations that the economy will improve in the next six months.
In India, key benchmark indices finished lower as investors turned cautious ahead of beginning of the 9-phase Lok Sabha elections on Monday, 7 April 2014. Increased profit-booking by funds and retail investors at prevailing record levels also dampened the trading sentiment.
The S&P BSE Sensex was down 149.57 points or 0.66% to 22,359.50, its lowest closing level since 28 March 2014. Among the 30 Sensex shares, 24 stocks fell and the remaining stocks rose. Barring realty, metal and consumer durables, all other BSE sectoral indices ended in the red.
Kotak Mahindra Bank was down 0.72%. Kotak Mahindra Bank Managing Director Uday Kotak today, 4 April 2014, said that bank capitalisation will be a significant challenge and constraint for Indian lenders in coming years. Kotak was speaking at a banking event in Pune.
Bharti Airtel fell 1.74% to Rs 316.25 on profit booking after the stock rose 11.54% in the preceding nine trading sessions to Rs 326.10 on 2 April 2014, from a recent low of Rs 292.35 on 21 March 2014.
Shares of state-run oil marketing companies (PSU OMCs) were in demand, with HPCL (up 4.66%), Indian Oil Corporation (up 3.21%) and BPCL (up 0.98%), all gained.
Most of Indian metal shares rose. Hindustan Zinc (up 0.15%), Tata Steel (up 0.84%), Hindalco Industries (up 0.44%), Bhushan Steel (up 0.49%), Hindustan Copper (up 5.49%), and National Aluminum Company (up 1.94%) edged higher. Steel Authority of India (Sail) (down 1.11%), Sesa Sterlite (down 0.18%) and Jindal Steel & Power (down 0.05%) declined.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 jumped 0.03%. Malaysia's KLSE Composite rose 0.05%. Singapore's Straits Times index fell 0.23%. Indonesia's Jakarta Composite Index fell 0.68%. Taiwan's Taiex index fell 0.19%. South Korea's KOSPI index was down 0.28%.
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