Headline shares of the Asia Pacific market closed mostly higher in thin trade on Monday, 06 October 2014, lifted by tracking gain of the Wall Street on last Friday after better-than-forecast U.S. payrolls boosted confidence in the world's largest economy. The MSCI Asia Pacific Index rose 0.7% to 139.01.
Wall Street stocks have barrelled higher on Friday, 3 October 2014, after the Labour Department reported the US economy gained a strong 248,000 jobs in September, pushing the jobless rate down to 5.9%, a six-year low. The better-than-forecast U.S. payrolls boosted confidence in the world's largest economy.
But, gain on the upside checked amid holiday in key regional markets and on caution ahead of FOMC minutes later this week for signs of when the U.S. Federal Reserve might raise interest rates.
The Fed is due to release minutes on Wednesday of a meeting last month. Investors will be watching for clues about a timetable for rate hikes and discussion surrounding the decision to keep the "considerable time" phrase in its pledge to keep interest rates near zero.
Members of the Fed's rate-setting Federal Open Market Committee think full employment is somewhere between 5% and 6%. At 5.9% unemployment, the key data already below the top end of what Fed rate-setters think is full employmenti.e., the lowest the unemployment rate can get before inflation begins to accelerate undesirably.
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Among Asian bourses
Aussie shares drop on profit booking
Australian share market finished weaker, dragged down by selloff across the board, with biggest banks and miners being major losers amid ongoing weakness in major commodities and the local currency. The benchmark S&P/ASX 200 Index declined 0.48% to 5292.90 and the broader All Ordinaries Index sank 0.43% to 5292.60. Turnover was relatively thin with 1.12 billion shares worth of A$2.16 billion traded today, because of the public holiday in many states.
Shares of banks and financial companies declined, with top four lenders leading fall amid worries about raising US interest rates and the looming final report from the government's Financial System Inquiry. Commonwealth Bank of Australia fell 0.6% to A$76.17, National Australia Bank 0.8% to A$32.71, Westpac Banking Corp 0.5% to A$32.42 and ANZ Banking Group 0.3% to A$31.55.
Materials and resources stocks were weaker amid softer gold, crude oil, and iron ore prices. Resources giant BHP Billiton fell 2.2% to A$32.70 despite outlining a plan to shareholders to overtake Rio Tinto as Australia's lowest cost producer of iron ore. Main rival Rio Tinto erased 2.1% to A$57.59. Iron ore miner Fortescue Metals Group shed 4.4% to A$3.30. Oil Search lost 0.5% to A$8.80. Australia's biggest gold producer, Newcrest Mining, fell 3.4% to A$9.96, as the precious metal's spot price fell below $US1200 per tonne for the first time since December.
Nikkei ends 1.16% up
Japanese share market finished the session sharp higher, lifted by broad-based bargain buying, led by exporters and other currency-sensitive stocks, thanks to yen depreciation to mid-109 level against the greenback. The Nikkei 225 index added 1.16%, or 182.30 points, to 15890.95 by the break, while the Topix index of all first-section shares climbed 1.08%, or 13.86 points, to 1296.40.
Shares of Exporters and other currency-sensitive companies advanced the most in Tokyo market. Sony Corp., which gets 72% of its sales abroad, rose 2.2% to 1937 yen. Canon Inc, the world's biggest camera maker, added 0.9% to 3520 yen. Air-conditioner maker Daikin Industries added 0.7% to 6597 yen, while chip testing equipment maker Advantest Corp gained 3.1% to 1387 yen. Toyota Motor Corp, the world's biggest automaker, advanced 1.5% to 6383 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, jumped 1.9% to 3605 yen.
Hang Seng jumps 1.09%
Hong Kong equity market closed modestly firmer, on tracking gain on the Wall Street on Friday, on tracking gain on the Wall Street on Friday and as as tensions regarding the Occupy Central campaign alleviated. Most of the sectoral blue-chips advanced, led by property developers after the mainland eased housing curbs and Macau gaming stocks on rising mainland visitors during the National Day Golden Week. The benchmark Hang Seng Index advanced 1.09% to 23315.04.
Shares of Casino operators gained on earnings optimism after tourism arrivals jumped in Macau in the past five days. Macau's tourism office said that visitor arrivals from China during the period rose 14% from a year earlier. Sands China surged 7.1% to HK$42.95 and Galaxy Entertainment Group rose 6.6% to HK$48.35.
Shares of Mainland developers jumped after China's central bank said people in the country applying for a loan to buy a second home may get discounts (previously only available to first-time home buyers) if they have paid off their initial mortgage. The central bank also eased a ban on mortgages for people buying a third home. China Resources Land added 2.5% to HK$7.22 and China Overseas Land & Investment 0.7% to HK$21.35. Sino Land Co rose 1.7% to HK$12.30, New World Development Co 2.1% to HK$9.14 and Sun Hung Kai Properties 2.8% to HK$111.70.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.1% to 9095.14. South Korea's KOSPI index eased 0.4% to 1968.39. Indonesia's Jakarta Composite index added 1.1% to 5003.71. Malaysia's KLCI added 0.17% to 1840.82. New Zealand's NZX50 climbed 0.08% to 5241.31. Markets in India, Singapore and mainland China were closed for a holiday.
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