Shares in the Asia Pacific market closed higher on Monday, June 10, 2013, as investors chased for bottom hunting after US jobs data helped allay concern the Fed might wind down its stimulus.
Bargain buying was main theme of the day following last week sharp correction on doubt over Fed stimulus tapering. Demand for risk assets got life after U.S. employment data on Friday suggested the economy is improving but not enough to persuade the Federal Reserve to start scaling back its stimulus program.
Traders were encouraged after a closely watched U.S. Labor Department measure of employment showed the world's largest economy added 175,000 jobs in May, better than the expected 165,000 increase but not strong enough to cause worry about near-term tapering of the Federal Reserve's massive stimulus.
But gains were largely muted as data from China over the weekend suggested risks are rising that the country's economic growth will slide further in the second quarter after unexpected weakness in May trade, inflation, retail sales and lending data. China's industrial production rose a less-than-forecast 9.2% in May from a year earlier and factory gate prices fell for a 15th month. Export gains were at a 10-month low and imports fell after a crackdown on fake trade invoices while fixed-asset investment growth slowed and new yuan loans fell.
National Bureau of Statistics data showed on Sunday that China's May exports rose 1% from a year earlier, down from 14.7% in April, while imports fell 0.3% from a year earlier, leaving a trade surplus of $20.4 billion. May's retail sales rise 12.9% in May compared with an increase of 12.8% increase in April and government target of 14.5% for all of 2013. People's Bank of China data showed that new currency lending of 667.4 billion yuan, down from 793.2 billion yuan a year earlier.
In the Asia Pacific region, Tokyo shares rebounded sharply, sending the benchmark Nikkei Stock Average 4.94% up at 13514.20 and the broader Topix index was higher by 2.1% to 1111.97. It was the first rebound in four trading days. Stocks rose across the board following US jobs data and after Prime Minister Shinzo Abe comment on Sunday that he plans to roll out new corporate tax cuts later this year. That came on top of the Japanese government's upward revision in last quarter's growth estimate to 4.1% from an earlier 3.5%. Meanwhile, news of George Soros's fund interest in Japan, as well as the Government Pension Investment Fund's confirmation about boosting its investment in domestic stocks also underpinned buying spree.
Hong Kong's shares advanced, with the Hang Seng Index up by 39.83 points or 0.18% to 21615.09. Gains in the blue chips shares were largely due to value buying after solid losses the previous week, and on easing concerns about a possible tapering of the Federal Reserve's quantitative easing. But gains were largely muted as China's weekend data that showed trade, retail sales and other activity in May weaker than expected, fueling concerns about the country's shaky economic recovery. Market turnover value was relatively softer as many participants remain on sideline due to shut in mainland bourses.
Indian benchmark indices edged higher amid high intraday volatility. A weakness in rupee against the dollar and political developments triggered volatility on the bourses. The S&P BSE Sensex recovered after hitting nearly 6 week low. The 50-unit CNX Nifty also recovered after hitting lowest level in 6-1/2 weeks. The Sensex was provisionally up 49.57 points or 0.26%, off close to 105 points from the day's high and up about 110 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Metal stocks fell on weak economic data in China. Bank stocks edged lower. IT stocks rose as rupee hit record low against the dollar. As per provisional figures, the S&P BSE Sensex was up 49.57 points or 0.26% to 19,478.80.
Elsewhere, New Zealand's NZX50 added 0.76%, Taiwan's Taiex rose 0.8%, South Korea's Kospi rose 0.46%, Malaysia's KLSE added 0.69% and Singapore's STI added 0.5%. Australian and Chinese stock market was closed for a public holiday.
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