The Fed is in the middle of a two-day policy meeting at which it's expected to maintain monthly bond purchases of $85 billion that are aimed at stimulating economic growth by keeping borrowing rates very low and encourage economic growth. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. The Fed will release its policy statement later in the global day.
The U.S. central bank's cheap money policy has underpinned stock markets worldwide for several years. Regional markets were under pressure throughout the summer due to expectations the Fed would start to roll back its stimulus, leading to heavy outflows from the region. In September, the central bank surprised markets by keeping its bond-buying program unchanged. But again a 16-day partial government shutdown coupled with weaker U.S. hiring and other economic indicators have built a case for "tapering" of the bond purchases to be delayed until next year.
Among Asian bourses, Australian shares finished higher, with benchmark S&P/ASX 200 index gaining 0.3% to 5430.90, led by energy, healthcare and retailers heavyweight players.
Retailers shares were higher in Sydney, led by JB-Hi-Fi, rising 3.7% to A$21.29 after the company said it is on track to meet its full year sales targets as it continues to open new stores expands into the home appliances market. JB Hi-Fi chief executive Terry Smart said the company's total sales rose by 8.1 per cent in the three months to September 30, while comparable sales growth in that period was 2.9 per cent. The electronics retailer expects to open 12 new stores in the year, and a further ten stores will be converted to a new home goods format. JB Hi-Fi had 176 stores across Australian and New Zealand as of the June 30, and plans to eventually grow to 214 stores.
Australian banking and financial stocks were up, with Australia & New Zealand Banking Group rising 0.2% to A$33.70 on better than expected annual profit result on Tuesday.. Meanwhile, Westpac Banking Corp rose 0.9% down at A$34.90 and Commonwealth Bank added 0.3% to A$77.01. National Australia Bank declined 1.2% to A$36.23 ahead of its FY13 profit result tomorrow.
Insurance Australia Group shares rose 2.9% to A$6.11 after the insurer said it's on track to meet its FY14 expectations. IAG has received 660 claims in respect of the NSW bushfires and expects net claims to cost in the region of A$65m - A$85m. Last financial year, IAG more than tripled its annual profit and more than doubled its distribution to shareholders.
In Japan, shares in Tokyo market rallied, buoying the Nikkei Stock Average higher by 176.37 points, or 1.23%, to end the day at 14,502.35, with stocks of companies that released strong earnings for the six months ended September. Meanwhile, a depreciation in the yen's fall against the dollar also prompted investors to buy exporters shares.
Honda Motor Co shares grew 1.3% to 3965 yen after the automaker reported a 46% rise in net profit in the fiscal second quarter, as the weak yen along with solid car sales in North America and Japan, and motorbike sales in Asia more than offset hefty spending on new factories in growth markets. Honda posted a net profit of Y120.37 billion ($1.23 billion) in the three months ended September, up from Y82.23 billion in the same quarter a year earlier. Honda said its revenue grew to Y2.890 trillion from Y2.271 trillion the previous year in the July-September quarter, up 27%, while its operating profit rose to Y171.45 billion from Y100.8 billion, an increase of 70%.
Japan Tobacco Inc shares rose 3.7% to 3550 yen after the company announced today that it will consolidate its cigarette production from six plants to four. It will also shut two other small and midsize factories turning out raw materials. JT is also reviewing its manpower need and aims to cut about 1,600 jobs, or just under 20% of the positions at the parent company. The move is an effort to restructure the company's operations amid sluggish domestic sales of cigarettes.
In China, shares in Mainland China market rebounded sharply, breaking a six-day losing streak, with gauge of utility and energy companies leading the rally. The Shanghai Composite Index gained 31.60 points, or 1.48%, to 2160.46. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 1.49% to 2407.47.
Shares in utility companies surged the most in Shanghai on expectations that the government may introduce market-oriented reform to the sector. The State Council's Development Research Center made a proposal on reforms in eight areas including breaking the state monopoly of the power industry and bringing in market competition. China International Capital Corp Ltd said in a report that a price bidding mechanism may be introduced and will benefit electricity companies with a cost advantage. Datang International Power Generation surged 4.4% to 4.56 yuan after reporting a third-quarter net income of 1.79 billion yuan, compared with the median estimate of 1.3 billion yuan. Huaneng Power International Inc. (902) rose 5.2% to 5.85 yuan.
Shares of energy players went up after the China Securities Journal said the government may open the sector to private investment as part of the reform plan at the upcoming plenum of the Communist Party of China Central Committee. China Petroleum, known as Sinopec, advanced 3.5% to 4.49 yuan after it reported a 20% jump in net income to 22 billion yuan ($3.6 billion) yesterday. PetroChina Co added 2.2% to 7.78 yuan. Offshore Oil Engineering Co gained 5.9% to 8.28 yuan.
Shares of consumer-linked companies climbed in Shanghai on speculation Chinese government may announce measures at Communist Party meeting to boost domestic consumption at the meeting, benefiting auto, dairy and home-appliance companies. SAIC Motor, the biggest automaker, jumped 3.8% to 14.42 yuan. Gree Electric surged 6.2% to 31.26 yuan. Suning Commerce Group Co., the largest electronics retailer, added 3% to 11.89 yuan.
In Hong Kong, HK shares have finished firmer, with the benchmark Hang Seng index rising 2% to 23304.02, aided by expectation that the US Federal Reserve to maintain its economic stimulus measures.
Shares of Hong-Kong listed Chinese oil explorer rose, with China Petroleum & Chemical Corp rising 2.81% to HK$6.23after posting a 20% rise in its third-quarter net profit from a year earlier. PetroChina Co added 1% to HK$9 after reporting a 19% increase in net profit over the same period. Kunlun Energy (00135) soared 7% to HK$12.52 after the National Energy Administration announced supporting policies to the shale gas industry.
Macau gaming players rebounded after yesterday's decline. Galaxy (00027) and Sands China (01928) put on 5.1% and 4.6% to HK$59.05 and HK$56.35.
In India, Indian shares rose modestly, with the barometer index, the S&P BSE Sensex, was provisionally finishing above the psychological 21,000 mark, having alternately moved above and below that level in intraday trade. The Sensex was provisionally up 92.99 points or 0.44%, off close to 65 points from the day's high and up about 85 points from the day's low. T
Jindal Steel & Power dropped 0.58% on weak Q2 result. The company's consolidated net profit fell 49.64% to Rs 454.94 crore on 7% increase in turnover to Rs 4983.84 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 30 October 2013. The company said the drop in earnings were caused largely due to drop of 12-15% in price levels and interest and depreciation burden of investments made in Angul phase - 1 steel plant and upgradation of Raigarh steel plant.
Lupin rose 1.36% on strong Q2 result. The company's consolidated net profit rose 39.8% to Rs 406.20 crore on 16% growth in total revenue to Rs 2667.90 crore in Q2 September 2013 over Q2 September 2012. Operating profit rose 27.8% to Rs 659.60 crore in Q2 September 2013 over Q2 September 2012. Operating profit margin edged up to 24.7% in Q2 September 2013, from 22.42% in Q2 September 2012. The company announced Q2 result during market hours.
Elsewhere in the region, New Zealand's NZX 50 index rose 0.32%. Indonesia's Jakarta Composite index added 0.27%. South Korea's KOSPI rose 0.38%. Taiwan's Taiex index added 0.52%. Malaysia's KLSE Composite gained 0.1%. Singapore's Straits Times index rose 0.67%.
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