Regional blue chip shares opened higher today, on tracking positive lead from Wall Street overnight, which saw the S&P 500 closed at another record high after ADP Research Institute said U.S. employment jumped by 191,000 last month, following a 178,000 increase in February that was stronger than estimated.
Meanwhile, news of China's introduction of stimulus package to prop up economic growth and speculation of additional monetary stimulus from the Bank of Japan also aided risk appetite buying in the Asian shares.
China acted for the first time this year to steady its stumbling economy by cutting taxes for small firms on Wednesday and announcing plans to speed up the construction of railway lines.
China's State Council yesterday introduced mini stimulus package designed to boost spending on railways and tax relief for struggling small businesses. The State Council said it will increase the taxable income threshold for the preferential tax rates paid by small companies by the end of 2016 from the current 60000 yuan. The executive decision-making body also said it will expand funding channels for public housing projects via special bond sales by the China Development Bank to institutions such as the Postal Savings Bank of China.
The Chinese government also said it will sell 150 billion yuan ($24 billion) of bonds this year to help build railways mainly in the less-developed central and western regions.
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Among Asian bourses, Japanese share market advanced for second day in row, sentiments lifted by tracking positive lead from the United State overnight, yen depreciation against basket of major currencies and speculation of additional monetary stimulus from the Bank of Japan.
The Nikkei Stock Average advanced 125.56 points, or 0.84%, to finish the session at 15071.88. The broader Topix index of all First Section shares of the Tokyo Stock Exchange grew 5.41 points, or 0.45%, to 1216.77, rising a ninth day to post its longest winning streak in three years.
Exporters advanced the most in Tokyo. Honda Motor Co, the carmaker that gets about 44% of sales from North America, gained 1% to 3,700 yen.
Orix Corp rose 2% to 1,513 yen after the leasing company said it will sell its stake in Monex Group Inc. to Shizuoka Bank.
Average price of regular gasoline in Japan this week rose to Y164.1 ($1.58) per litre, or $6.00 per gallon, from Y159.0 last week, hitting the highest level in five and a half years following the sales tax hike, according to data from the Agency for Natural Resources and Energy released on Thursday.
An index measuring the service sector in Japan climbed up into expansion in March, Markit Economics revealed today as its Performance of Service Index came in with a score of 52.2.That's up from 49.3 in February, and it moved above the key level of 50 that separates expansion from contraction in a sector.
In Australia, Australian stock market finished the session tad higher, on the back of better than expected trade and retail sales data. Australia's benchmark S&P/ASX200 and the broader All Ordinaries both finished 0.1% higher at 5409.90 and 5415.70, respectively.
The Australian Bureau of Statistics said on Thursday that retail sales climbed 0.2% MoM in February and trade surplus stood at seasonally adjusted A$1.2 billion in February.
Shares of retailers and consumer goods stocks climbed the most in Sydney today, after Australian Bureau of Statistics said today that retail sales rose 0.2% MoM in February, buoyed by demand for furniture and other household goods, in the latest sign that low interest rates are boosting spending. Supermarket operators Woolworths added 0.6% to A$35.89, while Wesfarmers, owner of Coles, added 0.8% to A$41.66. Wotif was up 2.5% to A$2.53, Harvey Norman 1.2% to A$3.29, David Jones 0.9% to A$3.25 and Wotif 2.4% to A$2.53.
Goodman Fielder's shares rebounded 7.4% to A$0.51 on bargain hunting following yesterday's 22.1% drop after the company slashed its full-year profit guidance by A$27 million, and as UBS analyst Craig Stafford upgraded his recommendation for packaged food wholesaler from neutral to buy due to a dramatic price change.
Resources giant BHP Billiton rose 0.4% to A$37.53, amid speculation the company could be set to embark on a massive program of divesting non-core assets. Junior miner Cassini Resources skyrocketed 366.7% to A$0.21 on the news it bought BHP Billiton's West Musgrave project for A$10 million.
National Australia Bank fell 0.5% to A$35.37 after the lender's chief executive, Cameron Clyne, said he would step down in August for personal reasons. He will be succeeded by Andrew Thorburn, head of the company's Bank of New Zealand subsidiary.
The Australian Bureau of Statistics stated on Thursday that the Australia's balance on goods and services was a surplus of A$1,200m seasonally adjusted in February 2014, a decrease of A$192m or 14% on the surplus from January 2014. In seasonally adjusted terms, goods and services credits rose A$120m to A$29,970m, while goods and services debits rose A$312m (1%) to A$28,770m.
Separately, the Australian Bureau of Statistics has released Retail Trade figures on Thursday, indicating that Australian retail turnover rose 0.2% in February 2014, seasonally adjusted, following a rise of 1.2% in January 2014.
In China, Mainland China share market declined for the first time in three consecutive sessions today, as investors cashing out profit off the table on renewed worries over liquidity crunch and soft reading on non-manufacturing purchasing managers for March.
The benchmark Shanghai Composite Index, which tracks both A and B shares, dropped 0.74% from prior day closure to finish at 2043.70, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, 0.72% to 2165.01.
Shanghai market opened higher today, following fresh record highs on Wall Street overnight and China's mini stimulus package designed to boost spending on railways and tax relief for struggling small businesses.
However, the market failed to hold initial momentum, as profit taking resurfaced due to soft non-manufacturing PMI data and concerns about liquidity crunch, and as China's stimulus plans did not impress the market.
Market pundits were speculating that China's leaders may be reluctant to duplicate large-scale stimulus after a 4 trillion yuan ($645 billion) package during the global financial crisis led to inflation, a housing bubble and industrial overcapacity.
China's non-manufacturing purchasing managers' index fell to 54.5 in March from a previously reported 55 in February, the government reported today.
Concerns over liquidity crunch renewed after People's Bank of China continued to step up its sterilization operations, draining another 62 billion yuan out of market this week, marking the eighth net weekly drain of funds in a row.
Shares of Chinese banks and property developers declined on profit booking after the China Securities Journal called for maintaining restrictions on home purchases. Poly Real Estate, the second-biggest developer, slid 1.6% to 8.11 yuan, while Gemdale Corp. declined 1.4% to 6.99 yuan. China Vanke Co., the largest developer, dropped 2.3% to 8.10 yuan. China Merchants Property Development Co. declined 2.7% to 19.40 yuan. Agricultural Bank of China dropped 2.1% to 2.39 yuan, China Citic Bank Corp. 2.6% to 4.57 yuan and Industrial & Commercial bank of China 0.6% to 3.42 yuan.
The State Council also said yesterday the nation will extend a preferential tax policy to more small companies and increase financing to build low-income housing.
China's rail stocks gained after the government said it will sell 150 billion yuan ($24 billion) of bonds this year to help build railways mainly in the less-developed central and western regions. China Railway Construction Corp. advanced 0.7% to 4.37 yuan.
In Hong Kong, equities of the Hong Kong market advanced for fifth consecutive sessions, with the benchmark Hang Seng Index up by 0.18% from previous day to finish at 22565.08, on the back of another strong performance on Wall Street overnight.
Among the HK 50 blue chips, 35 rose and 14 fell, with one stock remaining steady. China Mengniu Dairy Co advanced 3% to HK$40.80, contributing 5-points gains to the benchmark Index and becoming the best-performing blue chip. Tingyi Cayman Islands Holding Corp declined 4% to HK$21.70, contributing 5-points losses to the benchmark Index and becoming the worst-performing blue chip.
Railway and cement counters were biggest winner in the HK market today after the Chinese government said it will sell 150 billion yuan ($24 billion) of bonds this year to help build railways mainly in the less-developed central and western regions.
China Railway Construction surged 7.2% to HK$7.43 and China Railway Group climbed 5.9% to HK$3.95. But CSR (01766) inched down 0.7% to HK$6.67. Anhui Conch (00914) shot up 3.2% to HK$35.6, while CNBM (03323) jumped 3.3% to HK$8.15. West China Cement (02233) surged 9% to HK$0.96.
Prada SpA shares slipped 5% to HK$58.65 after the Milan-based luxury brand said the same-store sales will rise at a low single-digit pace in the financial year through January 2015, less than last year's 7% increase. The company also reported profit for last year that missed estimates.
In India, Indian share market declined today on profit-taking after the result of a survey showed that business activity in the Indian private sector fell in March 2014, after a fractional increase in February 2014.
The S&P BSE Sensex was closing at 22,509.07, down 42.42 points or 0.19%. It touched a high of 22,369.28 and a low of 22,620.65 in trade today.
Bank stocks fell after the Reserve Bank of India (RBI) on Wednesday, 2 April 2014, clarified that as indicated in its circular dated 23 August 2013 the option for spreading the Mark to Market (MTM) losses over the three quarters has ended on 31 March 2014 and no further extension has been allowed. Among private sector banks, ICICI Bank (down 0.21%), IndusInd Bank (down 1.86%), Yes Bank (down 2.07%), Federal Bank (down 2.35%), Kotak Mahindra Bank (down 1.44%) and HDFC Bank (down 0.48%), declined.
Axis Bank dropped 1.98%. The bank announced after market hours on Wednesday, 2 April 2014, that the board of directors of the bank on 2 April 2014 has passed a resolution approving the allotment of Senior Notes aggregating to $30.6 million under the MTN Programme through its Dubai International Financial Centre (DIFC) branch.
Among other PSU bank stocks, State Bank of India (SBI) (down 2.1%), Canara Bank (down 1.06%), Union Bank of India (down 1.31%), Bank of India (down 1.78%), and Bank of Baroda (down 2.96%) dropped. Punjab National Bank shed 2.41%. The bank said during market hours today, 3 April 2014, that it has raised Rs 500 crore capital through Tier-2 (Basel III compliant) Bonds on 3 April 2014.
IDBI Bank declined 1.53%. The bank announced after market hours on Wednesday, 2 April 2014, that it has divested its entire equity holding of 39.9 lakh shares (18.95%) in Stock Holding Corporation of India (SHCIL) to IFCI.
IDFC shares dropped 2.4% to Rs 124.95 after earlier surging as much as 8.8% on worries regulatory requirements for banks would weigh on its return ratios after the Reserve Bank of India on Wednesday granted preliminary bank licence to the infrastructure sector lender.
Larsen & Toubro shares finished 0.8% down at Rs 1290.10, after hitting intraday low of Rs 1254.60 on reports that India's biggest engineering firm was going to trim its 1.7 trillion rupees order book by about 10%.
Elsewhere in the Asia Pacific region, Malaysia's KLSE Composite rose 0.2%. Singapore's Straits Times index added 0.75%. Indonesia's Jakarta Composite Index added 0.43%. New Zealand's NZX50 jumped 0.12%. Taiwan's Taiex index fell 0.19%. South Korea's KOSPI index was down 0.18%.
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