Asia Pacific share market ended higher on Wednesday, 04 February 2015, joining global rally, after Europe and U.S. stocks rallied overnight on the back of jumping oil prices and on hopes Greece will be able to thrash out a debt deal with creditors. The MSCI Asia Pacific Index gained 1.6% to 142.07.
Shares in regional market commenced trading firmly higher today, on tracking positive lead from offshore market. Overnight, global markets rose, with Wall Street's S&P 500 adding 1.4% to 2050, on higher oil prices, while European stocks also climbed higher as Greece restored hopes the debt-ridden nation will not attempt to write off its debts.
Brent crude, the benchmark for more than half of the world, closed yesterday more than 20% above its Jan. 13 settlement on speculation reduced investment will curb production.
Among Asian bourses
Australia market climbs near seven-year peak
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The Australian share market advanced for tenth consecutive session, closing nearly seven-year high. The investment sentiments underpinned by the Reserve Bank's historic decision to cut the cash rate to a new low coupled with surge in commodities prices and a rally for U.S. stocks overnight. Meanwhile, hopes for a solution to the Greek debt standoff added to the upbeat mood. The benchmark S&P/ASX 200 Index rose 1.22% to 5777.30, a highest level since May 2008. The broader All Ordinaries Index gained 1.19% to 5733.70.
Financial stocks advanced, with top four lenders leading the ride, after Westpac and Commonwealth Bank reduced their home loan rates following the RBA decision. Commonwealth Bank of Australia advanced 0.4% to A$90.79, ANZ Banking Group 1.5% to A$34.62, National Australia Bank 0.8% to A$36.50 and Westpac Banking Corp 2.8% to A$36.23.
Shares of materials and resources companies surged, with iron ore miners being major winner after the spot price for the bulk commodity gained 1.2% to $63.18 a tonne overnight. Fortescue Metals Group surged 8.9% to A$2.58, BC Iron gained 15.8% to A$0.55, and Atlas Iron jumped 27.3% to A$0.21. Resources giant BHP Billiton added 4.4% to A$31.99 on rising iron ore, oil and copper prices, while its main rival Rio Tinto was up 3.7% to A$60.7.
Nikkei jumps 2%
Japanese share market finished the session sharply higher, as investors seeking for bargain buying after steep losses in previous two sessions and yen softening against the greenback. Meanwhile, rise in crude oil prices, bullish global markets and hopes for a solution to the Greek debt standoff accelerated the upbeat mood. The benchmark Nikkei Stock Average advanced 1.98% to close at 17678.74, while the broader Topix has gained 1.77% to close at 1417.
Export related stocks jumped the most, thanks to yen weakening against the dollar. Fanuc rose 3.0%, Kyocera added 3.2%, and medical device maker Terumo jumped 6.2%.
Shares of crude-oil sensitive companies advanced on the back of recovering oil prices. Overnight benchmark Brent crude oil went up $3.40 to $58.15 a barrel, up nearly 20% since January 2015. Inpex Corp added 2.6% and Japex gained 2.3%. JX Holdings Inc. gained 1.2%.
Shares of Mitsubishi UFJ Financial Group added 5.2% after booking a record profit for the nine month April-to-December period of 927 billion yen, up 18% on-year.
Shares of Sony Corp added 1.6% after Credit Suisse raised its price target to 3300 yen from 2600 yen while keeping its outperform rating, citing strong game and semiconductor sales, as well as additional restructuring in its mobile business.
Panasonic Corp fell 2% despite booking solid quarterly results. Sharp Corp lost 4.5% after booking a 7.2 billion yen net loss in its April-December period.
China stocks fall after weak service growth data
Mainland China share market ended lower, giving up morning gains after data showing China's services sector grew at the slowest pace in six months in January. The Shanghai Composite Index dropped 1% to 3,174.13 at the close, reversing an advance of as much as 1.1%.
China's services purchasing managers' index (PMI) posted 51.8 in January, down from 53.4 in December, announced HSBC Bank (China) on Wednesday. The sector's performance was in line with the country's manufacturing activity, which waned in January as the manufacturing PMI dropped to 49.8, below the 50-point mark for the first time since October 2012, marking increasing downward pressure on the economy. A reading above 50 indicates expansion, while a reading below 50 represents contraction. HSBC said business activity extended growth across China's service sector, though the rate of expansion softened to a six-month low as growth of new work also weakened at the start of the year.
Total of eight out of ten SSE industry groups declined, with financial issue leading, which down by 1.8%, followed by healthcare (down 1.4%), consumer discretionary (down 1.2%), consumer staples (down 1%), energy (down 0.9%), telecommunication services (down 0.5%), materials (down 0.1%), and information technology (down 0.1%).
Shares of financial companies suffered heavy losses in Beijing today. Industrial & Commercial Bank of China dropped 2% to 4.41 yuan and Bank of China was down 3.3% to 4.14 yuan. CITIC Securities fell 1.3% to 28.03 yuan, Haitong Securities Co. slid 2% to 20.21 yuan and Ping An Insurance (Group) Co sank 2.3% to 67.50 yuan.
Baoshan Iron & Steel Co. soared 10% to 6.41 yuan after the company's board approved a plan to set up a steel e-commerce platform.
Hang Seng ends 0.51% stronger
Hong Kong share market advanced for second consecutive session, joining global rally, after Europe and U.S. stocks rallied overnight on the back of jumping oil prices and on hopes Greece will be able to thrash out a debt deal with creditors. The Hang Seng Index ended up 124 points or 0.5% to 24,679, off an intra-day high of 24,824 and day low of 24,642. Turnover rose to HK$87.3 billion from HK$80.31 billion on Tuesday.
Banking stocks were higher on talks of assets disposal. Hang Seng (00011) soared 5.2% to HK$143.5 becoming the top blue-chip winner. It was tipped to sell its stake in Industrial Bank. BOCHK (02388) edged up 0.4% to HK$27.3. A newswire has days ago reported that BOCHK intends to sell Nanyang Commercial Bank.
Meanwhile, StanChart (02888), also rumored to dispose its Philippine retail banking business, jumped 5% to HK$108.3. HSBC (00005) added 1.3% to HK$72.4.
Lenovo (00992) shot up 5% to HK$11.46 after a slew of research houses issued bullish comments on the stock post its earnings report.
Sensex, Nifty hit lowest closing level in more than 2 weeks
Taking cues from weakness in European stocks, key equity benchmark indices in India edged lower. The barometer index, the S&P Sensex, fell below the psychological 29,000 mark. The S&P BSE Sensex lost 117.03 points or 0.4% to settle at 28,883.11, its lowest closing level since 20 January 2015. The CNX Nifty lost 32.85 points or 0.38% to settle at 8,723.70.
Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said in a conference call with analysts today, 4 February 2015, that inflation was still a concern. Prime Minister Narendra Modi yesterday, 3 February 2015, said that the priority of the government is growth and to create jobs. Meanwhile, the outcome of a monthly survey released today, 4 February 2015, showed expansion in India's services sector activity in January 2015.
Bank shares edged lower. Canara Bank gained after the state-run bank reported strong Q3 result. Power equipment Bharat Heavy Electricals (Bhel) reversed direction after hitting 52-week high. Adani Enterprises hit 52-week high. Tyre stocks fell across the board. Shares of oil exploration and production companies edged higher as crude oil prices surged yesterday, 3 February 2015. Power generation stocks were mixed. Tata Power jumped after turnaround Q3 results. Metal shares rose. Jindal Steel & Power (JSPL) edged higher after Q3 results.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 43.19 crore into the secondary equity market yesterday, 3 February 2015, as per data from Central Depository Services.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.7% to 9513.92. South Korea KOSPI added 0.6% to 1962.79. New Zealand's NZX50 added 0.1% at 5785.32. Indonesia's Jakarta Composite index was up 0.5% to 5315.28. Singapore's Straits Times index was up 0.3% at 3417.57. Malaysia's KLCI added 1.2% to 1803.02.
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