Asia Pacific share market advanced on Monday, 07 November 2016, amid positive developments on US election front as the FBI said Hillary Clinton would not face charges over her use of a private email server.
Earlier on Sunday, the Federal Bureau of Investigation confirmed that Hilary Clinton committed no criminal acts in relation to a private email server. The FBI reached a similar conclusion in July but opted to reopen its investigation just last week, roiling the Clinton election campaign with just days to go before the vote.
Investors had been unnerved by signs of a tightening presidential race between Clinton and Trump, whose stance on foreign policy, trade and immigration has rippled through financial markets.
Clinton is seen as a candidate of the status quo and her policies are viewed as more predictable than her Republican rival, a political novice.
However, despite giving boosts to Clinton's prospects, investors are unlikely to make big bets given Trump's gains in polls recently may not be entirely due to the FBI probe. Initial results of the Tuesday vote are expected to begin rolling out by Wednesday morning Asia time.
Among Asian Bourses
Australia Market rebounds on bargain hunting
Australian share market advanced for the first time in last five sessions, on the back of bottom fishing in recently battered stocks. Every industry category on the main section except bullion issue gained ground, led by healthcare, energy, financials, information technology, consumer discretionary issues. At the closing bell, the benchmark S&P/ASX 200 index surged 70 points, or 1.35%, to 5,250.80, while the broader All Ordinaries index rebounded 67.80 points, or 1.29%, to 5,330.90.
The financial sector, comprising banks and insurers, surged 1.8%. Among top lenders, Westpac gained 2.7% to A$30.50 after reporting annual financial results broadly in line with expectations, while the nation's biggest lender, Commonwealth Bank, jumped 2.2% to A$72.53. National Australia Bank rose 1.5% to $26.27, and ANZ added 0.3% to $27.03. Within the insurance space, Suncorp gained 2.6% to A$11.85 and Insurance Australia Group added 2.9% to A$5.39.
Energy stocks went up on tracking strength in crude oil prices. Oil prices rose, with traders citing opportunistic buying following sharp declines in the previous week on the back of weak fundamentals. Brent crude oil futures were trading at $46.08 per barrel, up 1.1%. U.S. West Texas Intermediate (WTI) crude futures grew 1.3% at $44.63 a barrel. Woodside Petroleum added 1.5% to A$28.32, Origin Energy 3.9% to A$5.37, and Santos 3.9% to A$3.50.
Nikkei rises after FBI says no charges against Clinton
The Japan share market finished the session higher, with risk sentiments boosted up as yen's descent against greenback and easing worries over her US presidential bid after news that market-favourite Hillary Clinton would not face criminal charges over her use of a private email server. Total 31 out of 33 TSE sectoral issues declined, with Transportation Equipment, Glass & Ceramics Products, Metal Products, Machinery, Banks, Real Estate, and Marine Transportation issues being major gainers. The benchmark Nikkei 225 index gained 1.61%, or 271.85 points, to finish at 17,177.21 while the broader Topix index was up 1.17%, or 15.76 points, at 1,362.80.
Export related stocks surged on tracking yen depreciation against US dollar Toyota Motor Corp gained 2% to 5,810 yen while rival Nissan Motor Co was up 1.7% to 1,029 yen. Suzuki Motor jumped 7.2% to 3,831 yen after it upgraded its full-year earnings forecast.
Financial stocks also rose, with Mitsubishi UFJ Financial Group jumping 1.9% to 529.4 yen and Sumitomo Mitsui Financial Group up 1.2% to 3,540 yen. Dentsu was up 0.39% at 5,130 yen despite news reports that labour authorities raided its headquarters on suspicion that the Japanese advertising giant made its employees work overtime illegally.
China Stocks end higher
Mainland China stock market finished session slight higher, as risk sentiments aided by Chinese Premier Li Kiqiang's remarks over the weekend that China will maintain steady growth and speed up its economic transformation. Offering further solace was the news that the Federal Bureau Investigation (FBI) said it stood by its earlier recommendation that no criminal charges were warranted against Democrat Hillary Clinton, two days ahead of the US presidential election. Sectors were mixed, with strong rally in coal miners and metal producers offset massive profit-taking in speculative stocks. The benchmark Shanghai Composite Index advanced 0.26% to close at 3,133.33 points. The CSI 300 index of the 300 biggest companies traded in Shanghai and Shenzhen added 0.07% to close at 3,356.59 points.
Coal miners and metal producers rose sharply on signs that government efforts to reduce over-capacity are starting to bear fruit, pushing some commodity prices higher.
Hong Kong Stocks rebound from a three-month low
The Hong Kong stock market rebounded from a three-month low higher on news that the Federal Bureau of Investigation confirmed that Hilary Clinton committed no criminal acts in relation to a private email server. The Hang Seng Index rose 0.7% or 158.78 points to 22801.40, while the Hang Seng China Enterprises Index added 1.23% or 116.73 points to 9608.24. Turnover increased to HK$60.4 billion from HK$51 billion on Friday.
HSBC (00005) gained 3% to HK$59.15 after the global banking group's 3Q adjusted pre-tax earnings came in better than market expectations. Hang Seng Bank (00011) softened 1% to HK$139.9.
Second round of testing for the Shenzhen-HK Connect program just completed over weekend. Credit Suisse expects the southbound inflow may reach RMB150 billion when the program is launched at end-November. HKEx (00388) put on 1% to HK$202.6.
Macau gaming counters were higher. Sands China (01928) added 3% to HK$35.05. Galaxy Entertainment (00027) climbed 2% to HK$32.5.
Property stocks tumbled after the city's government late Friday imposed fresh measuresincluding an increase in transaction taxesto cool the city's home property market Centaline Property Agency said in latest reports that Property transactions will fall as much as 70% in the next three months after the government unexpected move. SHKP (00016) sank 10% to HK$104. New World (00017) and CK Property (01113) plunged 9% to HK$8.87 and HK$52.8.
Sensex ends with firm note
Indian benchmark indices settled on a firm note tracking gains in global stock markets triggered by the Federal Bureau of Investigation (FBI) clearing Democratic candidate Hillary Clinton of any wrongdoing over the weekend. The barometer index, the S&P BSE Sensex, gained 184.84 points or 0.68% to settle at 27,458.99. The Nifty 50 index gained 63.30 points or 0.75% to settle at 8,497.05.
Lupin jumped 6.93%. The company announced that it has received notification that the inspection carried out by the USFDA in March 2016 at its Goa facility is now closed and the agency has issued an Establishment Inspection Report (EIR). This closes all outstanding US FDA inspections at Lupin's Goa facility, the company said. Commenting on the receipt of the EIR, Vinita Gupta, Chief Executive Officer and Nilesh Gupta, Managing Director, Lupin said that the company is committed to ensuring that all systems and processes followed by it are compliant with cGMP and are committed to bringing quality products to market.
Pfizer gained 0.34% after net profit rose 52.49% to Rs 126.33 crore on 6.35% rise in total income to Rs 581.96 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours on Friday, 4 November 2016.
NMDC rose 0.55% at Rs 127.70. The company said its total production rose 20.60% to 16.80 million tonnes in October 2016 over October 2015. Total sales rose 19.84% to 18.97 million tonnes in October 2016 over October 2015. The announcement was made after market hours on Friday, 4 November 2016.
Engineering and construction major L&T fell 1.26% to Rs 1,401 amid volatility after the Government of India offloaded stake in the company via bulk deal mechanism on the stock exchanges on Friday, 4 November 2016.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 2.4% to 6872.27. Indonesia's Jakarta Composite index rose 0.4% to 5386.21. Taiwan's Taiex rose 1.3% to 9189.84. South Korea's KOSPI index added 0.8% to 1997.58. Malaysia's KLCI was up 0.1% to 1650.59. Singapore's Straits Times index climbed 0.4% to 2800.95.
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