The regional bourses, however, trimmed intraday gains, on tracking sharp slide in the Chinese market, amid jittery over the latest move by China's securities regulators to clean up the margin-trading business.
The China Securities Regulatory Commission punished a dozen mainland Chinese brokers for allowing customers to delay repayments by longer than currently allowed under China's margin-trading rules. Outstanding margin loans totaled 1.08 trillion yuan (US$174 billion) as of Jan. 13, up from about 400 billion yuan at the end of June last year, according to China Securities Finance Corp. data. On the Shanghai Stock Exchange alone, the outstanding value of borrowings for margin trading has reached 767 billion yuan, more than double end-July's 284 billion yuan, according to latest data.
Among Asian bourses
Nikkei rises 0.9% on bargain buying, stronger dollar
Japanese share market traded higher, as yen softness against the greenback and positive lead from the Wall Street helped shares rebound from Friday's selloff. The market briefly pared gains as Chinese stocks tumbled after regulators took measures to rein in margin trading at three of the nation's biggest securities firms. The Nikkei Stock Average ended up 0.9% at 17014.29, while the broader Topix added 0.6% to 1372.41.
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Shares of currency-sensitive exporters advanced the most in Topix industry groups, with Tokyo Electron rising 1.4% to 8376 yen and Fuji Heavy Industries adding 2.6% to 4279 yen. Sony gained 2.5% to 2,443.5 yen and Canon Inc. climbed 0.8% to 3,787.5 yen. Honda Motor Co added 1% to 3,624 yen.
Airlines stocks tumbled the most among the Topix industry groups following gains in the oil prices. Japan Airlines Co. slid 1.9% to 3720 yen. ANA Holdings Inc. dropped 1.3% to 300.50 yen.
Japanese brokerages and banks after fresh steps by Chinese regulatory authorities to crack down on margin trading. Daiwa Securities Group dropped 1.8% to 854.90 yen, Nomura Holdings slipped 0.6% to 616.90 yen, and Sumitomo Mitsui Financial Group fell 1% to 3994 yen.
Among individual share movers, Advantest Corp was up 1.2% to 1351 yen, on reports that chip-testing equipment maker is expected to post a group operating profit of Y9 billion for its April-December period, bouncing back from a year-earlier loss, thanks to rising demand for smartphones in China and elsewhere.
Sharp Corp fell 8.7% to 230 yen on reports that the firm likely to suffer net loss for the current fiscal year, from Y30 billion net profit forecasts, due to stiff competition in major product lines and eroding margins due to a weaker yen on imported items it produces overseas.
Australia market rises for the first time in six sessions
Australian share market closed higher, after a week of losses, thanks to strength in shares of mining and energy companies that helping to offset losses elsewhere. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both advanced by 0.19% to 5309.10 and 5289, respectively.
Shares of material and resources companies mostly higher, with heavyweight BHP Billiton gaining 2.4% to A$27.71, while Rio Tinto rose 0.5% to A$54.16 on rumours that it has sold more stockpiled iron ore than expected. Australia's third largest iron ore miner Fortescue Metals Group fell 1.3% to A$2.28.
Energy stocks were also higher, led by Oil Search, which gaining 4.9% to A$7.49, after expansion of the giant PNG LNG project in Papua New Guinea took a step closer to reality. ExxonMobil and Oil Search have made a deal with the local government that would see a final investment decision on a third LNG processing train taken "as soon as possible". Other energy stocks also had a good day with improved global sentiment on the oil price. Santos was up 0.67% to A$7.54, Horizon Oil shot up 4% to A$0.13, and Senex lifted 1.8% to A$0.285.
Shares in OzForex crashed 10.3% to A$2.43 after the international payments and foreign exchange services business reported that Westpac Banking Corp would no longer provide banking services to the company as it exits the money-service industry.
Macquarie Group advanced 5.4% to A$58.25 after hiking its fiscal-year profit forecast to a 10%-20% range due to improved trading results and a better currency environment.
China market plummets on margin lending crackdown
Mainland China share market stumbled sharply, as risk aversion selloff across the board, with shares of brokerage houses being major losers after regulators took measures to rein in margin trading. The benchmark Shanghai Composite Index tumbled 260.15 points to 3116.35 on turnover of 409.9 billion yuan, after falling as much as 8.33% at one point. The decline was the biggest since June 10, 2008, when the index closed down 7.73%.
Financial stocks led the market lower, as many banks, insurers and brokerages, hit the 10% downward limit for trading. Citic Securities and Haitong Securities both were suspended from trading after falling 10% daily limit. Bank of China, Citic Securities and Bank of Communications also ended at 10% lower limit.
Property developers were also down after a fresh fall in home prices across China's major cities, with Gemdale Corp. and Poly Real Estate Group Co both ended 10% lower circuit, while China Merchants Property Development Co. closed lower by 8.6%.
Hang Seng ends 1.5% down
Hong Kong share market closed steep lower today, on tracking slide in the Mainland A-share market after the China's securities regulator took measures to clamp down on margin trading. The Hang Seng Index ended down 365 points or 1.5% to 23738.49, off an intra-day high of 24049.55 and day low of 23590.05. Turnover rose to HK$127.9 billion from HK$95 billion on Friday.
Mainland Chinese brokers took a hard hit after regulators punished 12 securities firms for wrongdoing. Citic Sec (06030) and Haitong Sec (06837) were suspended to open new margin accounts for three months. Both stocks plunged 16.5% to HK$23.6 and HK$15.36. Other losers among the brokerages included Shenyin Wanguo HK (down 14.6%), China Galaxy Securities Co (down 13.2%) and China Everbright (down 10.9%).
Chinese insurers and banks also suffered heavy blow. Ping An (02318) plunged 8% to HK$81.2. China Life (02628) slipped 6.8% to HK$29.6. CPIC (02601) and PICC Group (01339) also dived 8.5% and 6.8%. Bankcomm (03328) dived 8% to HK$6.35. BOC (03988) pounded 6% to HK$4.18. CCB (00939), ABC (01288) and ICBC (01398) also fell between 3.8% and 4.3%.
Also affecting sentiment was a fresh fall in home prices across China's major cities. Among the real-estate names listed in Hong Kong, China Vanke Co dropped 6.3%, China Resources fell 3.1%, and China Overseas Land & Investment gave up 3.5%.
Sensex begins the week on positive note
Indian stock market closed edged higher on the first trading session of the week, on the back of gains in pharma, cement and telecom stocks. Shares of FMCG major Hindustan Unilever (HUL) dropped on profit taking after the company reported a modest growth in bottom line driven by a sharp rise in profit on sale of surplus properties. As per provisional closing, the S&P BSE Sensex was up 147.27 points or 0.52% to 28,269.16. The CNX Nifty was up 36.90 points or 0.43% at 8,550.70, as per provisional closing.
India's Prime Minister Narendra Modi on Friday, 16 January 2015, called for making India a $20 trillion economy from a $2 trillion economy today. Speaking at an event, Modi also said that the government is committed to achieving the 4.1% fiscal deficit target announced in the Union Budget 2014-15.
Finance Minister Arun Jaitley reportedly said today, 19 January 2015, that the government will increase spending on infrastructure.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.4% to 9174.06. South Korea KOSPI was up 0.8% to 1902.62. New Zealand's NZX50 rose 0.4% at 5638.14. Singapore's Straits Times index advanced 0.2% at 3307.70. Indonesia's Jakarta Composite index jumped 0.07% to 5152.09. Malaysia's KLCI grew 0.56% to 1753.31.
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