US equities ended higher for the second consecutive day yesterday, aided by positive corporate earnings results from Coca Cola Co. and Johnson & Johnson. Technology stocks, meanwhile, witnessed some gains on value-buying. Dow Jones ended higher by 0.6% and S&P 500 rose by 0.7%.
China's gross domestic product expanded at 7.4% year-on-year in the first quarter, the slowest rate of growth since September 2012, and below both the 7.7% growth posted in the year to December and the central government's official annual target of about 7.5% growth, but narrowly beat consensus forecasts of 7.3%. The slowdown in the Chinese economic growth to the weakest pace in six quarters reinforced prospects for stimulus from the Beijing. Other data from China saw industrial production rose 8.8% yoy in March while fixed assets rose 17.6% yoy and retail sales rose 12.2% yoy.
However, gain on the regional market were limited on rising tensions in Ukraine and on caution ahead of American housing and industrial activity data later in the global day.
Among Asian bourses, Japanese share market finished sharply higher, as bargain buying spurred across the board after last week's steep fall, a weaker yen, and a big rally in shares of SoftBank. Risk sentiments in Tokyo bolstered further after Bank of Japan Governor Haruhiko Kuroda on Wednesday reiterated the positive outlook for future inflation rates, saying that Japan can achieve its 2% price stability target from the end of fiscal 2014 through to March 31, 2016. The benchmark Nikkei 225 added 3.01% to finish at 14,417.68, while the Topix index of all first-section shares tacked on 2.68% to 1,166.55.
Bank of Japan Governor Haruhiko Kuroda told lawmakers at the Lower House Financial Affairs Committee that the aggressive easy policy launched last April is steadily exerting its intended effect, as expected. He added that Japan's economy is on a smooth path toward achieving the 2% price stability target. Kuroda also repeated the standard BOJ view that the core consumer price inflation rate is likely to remain around 1.25% on year for some time before increasing again and eventually moving to 2%.
SoftBank was the single biggest positively-weighted Nikkei component, surging 8.5% after earnings at Chinese e-commerce giant Alibaba--in which SoftBank owns a 37% stake--showed that profits more than doubled in its fourth quarter to over $1.3 billion. Yahoo Japan Corp. advanced 4.3%.
In Australia, Australian share market finished modest higher, on the back of better than expected Chinese economic growth data, with resources, industrials and mining stocks led rally. The benchmark S&P/ASX200 and the broader All Ordinaries each rose by 0.6% from prior day to finish at 5420.30 and 5412.60, respectively.
BHP Billiton shares grew by 0.4% to A$37.94 after the mining giant increased full year iron ore guidance by 5 million tonnes. The miner said today that production of its biggest money-spinner would now reach 217 million tonnes in the 2014 financial year rather than 212 million tonnes. Full year guidance for copper was maintained at 1.7 million tonnes despite improved performance at Escondida in Chile.
Fortescue Metals Group shares rose 1.2% to A$5.395 despite revealing a set of March quarter results that were weaker than market expectations. The miner believes it can run its operations at sprint capacity during the June quarter to ensure the full year target of 127 million tonnes is met. That will require Fortescue to ship a massive 41.6 million tonnes in the June quarter; a rise of about 32% above the 31.5 million tonnes that were shipped in the March quarter.
Shares in wealth manager Challenger Financial were up 4.8% to A$6.40 after the company reported assets under management increased 1% over the March quarter to A$49.5 billion, up 21% year-on-year. Challenger Life annuity sales for the March 2014 quarter were $496 million, an increase of 29% on the prior corresponding period (pcp), the company reported. Retail annuity sales were A$478 million, an increase of 35% on pcp, with strong growth achieved in both term and lifetime annuity products.
In China, Mainland China share market finished slight higher, on the back of stimulus speculation after China's economic growth slowed to the weakest pace in eighteen months. The benchmark Shanghai Composite Index, which tracks both A and B shares, closed 3.52 points higher at 2105.12, after hitting an intraday high of2112.05 and low of 2092.16.
Among SSE sectors, 6/10 sectors of the SSE index declined, with consumer staple sector was top loser in the SSE sectoral peers, with a 0.5% fall, while telecommunication services was top gainer in the SSE sectoral peers, with a 0.5% gain. Elsewhere, financial was up 0.5% and utilities up 0.3% while material sector was down 0.5% and healthcare down 0.3%.
Shares of financial sector gained the most in the Shanghai market, with brokerage houses led rally. Founder Securities advanced 3% to 5.92 yuan after saying 2013 net income almost doubled from a year ago. Guoyuan Securities Co. rose 2% to 9357 yuan. Haitong Securities Co. advanced 0.9% to 9.89 yuan.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., China's biggest producer, slumped 4.1% to 20.14 yuan after full-year net income fell 72% from a year earlier.
China National Chemical Engineering Co., which builds power plants, dropped 1.9% to 6.27 yuan.
In Hong Kong, shares in the city's market finished the session tad higher after trimming gain late afternoon, as investors cashed in intraday profit, spur by above expectation China's 1Q GDP, on caution ahead of American housing and industrial activity data later in the global day. The benchmark Hang Seng index closed 24.75 points higher at 22696.01, after touching intraday peak of 22866.56.
Among the HK 50 blue chips, 28 fell and 18 rose, with remaining four stocks closed steady. Lenovo Group advanced 2.2% to HK$9.34, contributing 4-points gains to the benchmark Index and becoming the best-performing blue chip. China Resources Power Holdings Co declined 3% to HK$20.90, contributing 4-points losses to the benchmark Index and becoming the worst-performing blue chip.
Shares of MMG declined 1.5% to HK$1.96 despite the mining company kept its annual production and cost guidance is unchanged. MMG announced 39,635 tonnes and 9,449 tonnes of copper cathode production and copper production for the first quarter of 2014, an increase of 15% and 16% from a year earlier and up 1% and 23% quarter-on-quarter. Production of zinc and lead amounted to 133,929 tonnes and 18,544 tonnes, up 5% and 49% year-on-year but down 27% and 25% quarter-on-quarter. MMG said annual production and cost guidance is unchanged and it is on track to deliver 173,000 to 186,000 tonnes of copper and 600,000 to 625,000 tonnes of zinc in 2014.
GOME Electrical Appliances shares climbed up 2.9% to HK$1.44 after the electronic retailer said it repurchased on-market 10 million shares yesterday at HK$14 million, equivalent to HK$1.4 per share.
Sinopoly Battery shares jumped 5.6% to HK$0.57 after the company said it agreed to acquire the entire issued share capital of Giant Industry Holdings Limited at HK$190 million from Kam Chi Yip.
Shares of China Southern Airlines declined 1.6% to HK$2.43 after the civil aviation company forecasted to post record a net loss of about Rmb300 million to Rmb350 million for the first quarter of 2014, as compared to the net profit of Rmb57 million for the same period last year. During the first quarter of 2014, the financial expenses of China Southern Airlines substantially increased as compared with the corresponding period of 2013 due to the exchange losses (as compared with the exchange gains for the corresponding period of 2013) resulting from the substantial depreciation of Renminbi.
In India, key benchmark indices extended losses and hit fresh intraday low in afternoon trade. The market sentiment was hit adversely after private weather forecaster Skymet on Tuesday, 15 April 2014, said it expects the June-September monsoon to be below normal this year. The forecast of below-normal rains triggered worries that food price inflation will edge up. Increase in global crude oil prices also hit sentiment on the domestic bourses adversely. At 13:15 IST, the S&P BSE Sensex was down 115.96 points or 0.52% to 22,368.97. The index declined 136.55 points at the day's low of 22,348.38 in afternoon trade, its lowest level since 7 April 2014. The index rose 48.69 points at the day's high of 22,533.61 in early trade.
Increase in crude oil prices triggered concerns about India's current account deficit and fiscal deficit. Brent oil rose edged higher on Tuesday, 15 April 2014, after news that Ukrainian armed forces launched military operations in the east of the country. The June contract for Brent settled 29 cents higher at $109.36 a barrel on Tuesday, 15 April 2014. India imports majority of its crude oil requirements.
IT major Tata Consultancy Services (TCS) dropped ahead of its Q4 results today, 16 April 2014. Infosys declined after the company's American depositary receipt (ADR) dropped on the New York Stock Exchange on Tuesday, 15 April 2014, after the company announced its Q4 March 2014 results and issued guidance for the year ending 31 March 2015 (FY 2015). Index heavyweight and cigarette major ITC edged higher in volatile trade. Interest rate sensitive realty stocks edged lower.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 added 0.28%. Taiwan's Taiex index added 0.08%. Singapore's Straits Times index rose 0.21%. Indonesia's Jakarta Composite Index rose 0.07%. South Korea's KOSPI index was down 0.06 point. Malaysia's KLSE Composite fell 0.46%.
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