Asia Pacific share market finished higher on last trading session of month, 31 October 2014, as risk appetite buying underpinned on tracking positive lead from Wall Street overnight and reports the Bank of Japan ramped up its vast monetary easing program. The MSCI Asia Pacific Index added 1.4% to 142.25.
Regional shares commenced trading with positive note, on tracking gains on the Wall Street overnight. US equities jumped sharply overnight as boosted by the stronger than expected GDP report, which showed 3.5% annualized growth comparing to consensus of 2.9%.
Also, buying pressure accelerated on reports the Bank of Japan ramped up its vast monetary easing program and Japan $1.2 trillion Government Pension Investment Fund will increase holdings of equities. Meanwhile, buying momentum sustained throughout the day after some upbeat earnings from regional bellwether companies.
The Japan central bank expanded the size of its Japanese Government Bond purchases to the equivalent of about 80 trillion yen a year, an increase of 20 trillion yen from the current asset-buying scheme. It said it would also buy longer-dated JGBs, seeking an average remaining maturity of 7-10 years. The central bank also said it would triple its purchases of exchange-traded funds and real-estate investment trusts.
It's reported that the $1.2 trillion Government Pension Investment Fund, or GPIF, will raise foreign investments holdings from 23% to 40%. That includes 25% of overseas stocks and 15% of bonds and is significantly higher than market's expectation of around 30% in total. Local stock holdings will be raised to 25% and domestic debt holding would be lowered to 35%.
Among Asian bourses
Nikkei zooms as central bank fresh stimulus
Japanese share market closed the session sharply higher, on broadbased buying after the Bank of Japan's expanded the pace of its quantitative easing and media reports of an aggressive shift in government pension fund investment. The benchmark Nikkei Stock Average gained 4.8% to 16,413.76, the highest close since November 2007.
The yen, meanwhile, depreciated to an almost seven-year low of 111-level against the dollar following the BOJ decision to pump even more money into the economy after a second-quarter contraction. A weak yen is good for Japanese exporters as it makes them more competitive abroad and inflates their repatriated profits.
Real-estate and financial services companies led gains as all but one of the 33 industry groups on the Topix climbed. Mitsubishi UFJ Financial Group Inc., Japan's largest lender, gained 4% to 632.2 yen and Sumitomo Mitsui Financial Group Inc. rose 7.2% to 4,399.5 yen.
Aussie market rises 0.9%
Australian share market finished sharp higher, boosted by overnight gains on Wall Street and some upbeat earnings from bellwether companies including ANZ and Macquarie. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both advanced by 0.9% to 5526.60 and 5505, respectively. The benchmark S&P/ASX 200 Index lifted 4.4% in October, while the broader All Ordinaries Index added 4%.
Shares of banks and financial companies advanced, with National Australia Bank raising 1% to A$34.99, extending yesterday gain after the lender earning results came in line with guidance. Australia and New Zealand Banking Group pushed 0.9% higher to A$34.78 after announcing its annual cash profit grew 10% to A$7.1 billion, with growth from all of its divisions. Westpac Banking Corp, reporting Monday, rose 0.9% to A$34.78 and Commonwealth Bank of Australia, which will provide a quarterly earnings update on Tuesday, gained 0.4% to A$80.48. Macquarie Group also posted a strong gain, adding 2.2% to A$61.17 after a 35% rise in its half-year profit.
Resource stocks also ended higher. BHP Billiton added 1.2% to A$33.96, Rio Tinto gained 1.9% to A$60.41 and Fortescue Metals was 1.7% higher at A$3.50. But gold miner Newcrest dropped 4.5% to A$9.32 after the gold price fall.
Shanghai Composite ends up 0.76%
Mainland China share market closed at fresh 20-months peak today, on sustained buying from retailers and funds on big capitalization stocks including banks on hopes of stimulus measures. The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 1.2% at 2420.18, marking the highest close since Feb. 18, 2013, when it finished at 2421.56. For the week, the index gained 5.1%. For October, it was up 2.4%.
Buying interest in big capitalization stocks gathered momentum, led by banks following recent underperformance amid concerns over asset quality. Bank of Nanjing surged 9.5% to CNY10.73, Bank of Ningbo gained 8.6% to CNY11.49 and Bank of China added 3.3% to CNY2.80 after it said its third-quarter net profit rose 5% from a year earlier.
Brokerages were also among the biggest gainers, fueled by active trading in the market. Huatai Securities jumped 7.4% to CNY10.47, Everbright Securities rose 4.2% to CNY11.22 and Citic Securities advanced 2.2% to CNY13.27 after posting a 44% increase in third-quarter net profit.
Hang Seng surges 1.25% on positive lead, Shanghai trading hopes
Hong Kong equity market finished the session higher, as risk appetite buying boosted by tracking gain on the Wall Street overnight and gain on the regional market today, and reports that tests were planned this weekend for the direct trading of Shanghai shares. The Hang Seng Index rose 1.25%, or 296.02 points, to 23998.06. Turnover increased to HK$82.9 billion from HK$67.58 billion on Thursday.
Shares of Banks were mostly higher after Bank of China and Agricultural Bank of China both posted profit gains in the mid-single-digits. Bank of China gained 0.8% to HK$3.71 and Agricultural Bank of China rose 0.8% to HK$3.60. China Merchants Bank Co added 1.6% to HK$14.36 and Bank of Communications Co 2.1% to HK$5.81, but Standard Chartered PLC fell 3.4% to HK$120, adding to losses a day before as reports said the U.S. may launch another probe into violations of U.S. sanctions against Iran.
Macau gaming players rose across the board. Galaxy Ent (00027) jumped 5.2% to HK$52.95. Sands China (01928) rose 3% to HK$48.3. MGM China (02282) added 3% to HK$24.9. Melco Crown (06883) shot up 3.4% to HK$69.25.
Aviation counters benefited from the lower crude prices. CEA (00670) rose 4.6% to HK$2.95. Cathay Pacific (00293) gained 1% to HK$14.54. Air China (00753) was flat at HK$5.02. CSA (01055) edged up 0.7% to HK$2.72.
Oil majors were also firmer. PetroChina (00857) inched up 0.6% to HK$9.71. Sinopec (00386) was slightly up by 0.2% to HK$6.72. CNOOC (00883) rose 1.5% to HK$12.18.
Chinese telecom operators were higher. China Mobile (00941) put on 2.6% to HK$96.5. China Unicom (00762) added 1.6% to HK$11.66. China Telecom (00728) also rose 1.9% to HK$4.94.
Sensex hits life-high
Indian stock market closed at record high for the second consecutive day, triggered by a surprise announcement from the Bank of Japan that it will increase its asset purchases aided strong gains on the domestic bourses. The market sentiment was also boosted by provisional data showing substantial buying of Indian stocks by foreign portfolio investors yesterday, 30 October 2014. Key indices surged in late trade hitting their fresh record high. The Sensex was provisionally up 490.61 points or 1.79% at 27,836.94.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore yesterday, 30 October 2014, as per provisional data. Brent crude oil prices declined. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
ITC declined in volatile trade after announcing Q2 results. Bharti Airtel declined after announcing Q2 results. IDFC gained after announcing Q2 results. Ambuja Cements rose on strong Q3 results. NTPC edged higher in volatile trade after announcing Q2 results. Mahindra & Mahindra (M&M) edged higher in volatile trade after announcing Q2 results.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.98% to 8974.76. South Korea KOSPI added 0.28% to 1964.43. Malaysia's KLCI rose 0.67% to 1855.15. New Zealand's NZX50 rose 0.33% to 5387.83. Singapore's Straits Times index grew 1.23% at 3274.25. Indonesia's Jakarta Composite index climbed 0.61% to 5089.55.
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