Stocks in the United States were broadly higher on Thursday despite another round of weak U.S. economic reports. Stocks briefly traded lower early in the session after a pair of worse-than-expected economic reports raised concerns about the pace of U.S. economic growth. But indexes recouped losses within hours, as investors continued to chalk up disappointing data to severe winter weather.
The Standard & Poor's 500 index rose 10.57 points, or 0.6%, to end at 1,829.83 on Thursday. The Dow Jones industrial average climbed 63.65 points, or 0.4%, to 16,027.59.
A report showed that cold weather caused U.S. retail sales to drop in January for a second straight month as Americans spent less on autos and clothing and at restaurants during a brutally cold month. Weekly jobless claims were higher than expected.
The eurozone currency bloc saw its economy grow 0.3% in the fourth quarter, faster than the previous three-month period's 0.1%. That shows the recovery is getting a foothold, both in the larger economies like Germany and weaker ones like Italy.
Among regional bourses, Australian stock market climbed up, buoyed by stronger than expected earnings from blue chip companies. All sectors ended higher, with solid gains led by the technology, healthcare, utilities, consumer discretionary, materials, financials and industrials sectors.
The benchmark S&P/ASX 200 index advanced 48.20 points to finish at 5356.30, while the broader All Ordinaries grew 48.20 points to 5366.90. For the week, the benchmark S&P/ASX200 surged 189.8 points or 3.7%, while the broader All Ordinaries jumped 182.4 points or 3.5%.
Rio Tinto shares grew 0.1% to A$67.90 after the posted better than expected earnings and a 25 cent dividend jump. The company reported a bumper lift to underlying earnings, up 10% on the year to $US10.2 billion.
Transpacific Industries (TPI) shares grew 1.7% to A$1.165 after the owner of Cleanaway reported a profit of A$159 million in the six months to December 31, as compared A$32.3 million in the same period a year earlier.
Charter Hall Retail (CQR) shares rose 0.5% to A$3.66 after the property landlord announced a 30.4% jump in half year profit. The REIT recorded a profit of $20.6 million in the six months to December 31, compared to $15.8 million for the same period in 2012.
Shares in ANZ added 1.1% to A$31.34 after the bank revealed unaudited cash profits of A$1.7 billion in the three months to December, up 13% from the previous year.
Shares in Newcrest Mining fell 1.9% to A$11.05 after the gold miner said that its first-half net profit fell due to a plunge in the price of the precious metal. The company said that its net profit in the six months through December was A$40 million, down from A$323 million a year earlier.
In Japan, Japanese stock market declined for second consecutive session, as wave of profit booking flared across the board amidst yen appreciation against the US dollar. The benchmark Nikkei-225 index dropped 221.71 points to 14313.03, while the broader Topix index of all first-section shares sank 15.92 points to 1183.82.
Japanese share market opened in gains during morning session on the back of a gains in Wall Street overnight on upbeat corporate earnings and deal developments and after finance minister Akira Amari said the majority of the government's $53 billion stimulus package will be implemented by the end of June. However, weaker US dollar against Yen along with Chinese economic data dragged the benchmark Nikkei index to lower at the end of morning session. The benchmark indices extended losses in the afternoon session as stronger yen tends to weigh on shares of Japanese exporters as it's bad for their profitability.
The Japanese yen appreciated from prior day closure against US dollar and other major peers on Friday, as traders moved into the safe-haven currency after an unexpected drop in U.S. January retail sales, as well as weaker-than-expected first-time jobless claims data for last week. In forex markets, the dollar fell below 102 yen, fetching 101.69 yen in Tokyo Friday afternoon from 102.15 yen in New York Thursday afternoon.
In China, Mainland China market rose, with the benchmark Shanghai Composite Index higher by 0.83% to finish at 2115.85, as steady domestic inflation data leaving more room for the government to stimulate the economy. Most of the sectors ended higher with gains led by consumer companies and healthcare sectors, while financial shares retreated.
China's consumer prices rose 2.5% over a year earlier in January. The rise in politically sensitive food costs decelerated to 3.7% from December's 4.1%. The producer-price index fell 1.6%. China's economic data are distorted in January and February by the shifting timing of the week-long Lunar New Year holiday, which began on Jan. 31 this year.
Shares of distilleries gained the most in the Shanghai market. Kweichow Moutai climbed 5.3% to 142.90 yuan. Wuliangye Yibin Co. gained 3.3% to 15.52 yuan.
Shares of drug-makers also finished higher. Fosun Pharmaceutical gained to 20.08 yuan, a record high. China Resources Sanjiu Medical & Pharmaceutical Co. added 3.3% to 25.78 yuan.
The China Trustee Association said on Thursday that China's trust sector grew at a slower pace in the final months of last year, suggesting that official efforts to curb growth in risky shadow-bank lending may be having some impact. Assets under management at Chinese trust firms rose to 10.9 trillion yuan (US$1.8 trillion) at end-December. That's year-on-year growth of 46%, a slowdown from 71% and 60% growth in the second and third quarters, respectively.
The China Banking Regulatory Commission said on Thursday that Chinese banks non-performing loans rose by 28.5 billion yuan ($4.7 billion) in the last quarter of 2013 to 592.1 billion yuan, the highest since Sept. 2008.
The China Association of Automobile Manufacturers said on Thursday that motor-vehicle sales reached 2.16 million units in January, up 6.4% year on year, on the back of seasonal demand ahead of the weeklong Lunar New Year holiday. The total included 1.85 million passenger vehicles, sedans, sport-utility vehicles and minivans, up 7% from a year earlier. Most major carmakers reported strong sales last month. Toyota Motor Corp., the world's largest carmaker by sales, posted an 18% rise to 85,600 vehicles. General Motors Co. said sales rose 12% to more than 348,000 vehicles and Ford Motor Co. reported a 53% rise to about 94,500 vehicles.
In Hong Kong, shares of the Hong Kong market closed modestly higher in quiet trade, on catching up cues from Wall Street overnight gain and positive showing in the Mainland China bourses. The benchmark Hang Seng Index provisionally finished 132.88 points, or 0.6%, higher at 22298.41. The benchmark index opened 217 points higher and saw its gains pare on a lack of further momentum.
Among the HK 50 blue chips, 37 stocks advanced while remaining 13 stocks ended lower. Galaxy Entertainment Group advanced 2.4% to HK$74.30, while CITIC Pacific dropped 1.4% to HK$10.04, making themselves the biggest blue-chip gainer and loser.
Elsewhere, China's largest residential developer Vanke Property Overseas down 1.31% after the company's influential Chairman Wang Shi warned of serious risks facing the domestic property market this year. Several other leading developers also retreated in Hong Kong, as Country Garden Holdings Co. declined 1.97% and Shimao Property Holdings dropped 2%.
Tencent Holdings climbed further 1.57% after gains in the previous session, as the technology giant recently partnered with China's major retail group, Beijing Wangfujin Department Store, to develp e-commerce on its popular WeChat instant-messaging mobile app.
The Macau government expects slower gross revenue growth this year. But rumours said Galaxy Ent (00027) may complete its second phase project earlier, leading to a surge of 2.4% of the stock to HK$74.3. Sands China (01928) gained 1% to HK$59.5.
The Hong Kong Monetary Authority said foreign assets, representing the external assets of the Exchange Fund, decreased during the month by HK$10.7 billion to HK$2,570.9 billion at the end of January. The Monetary Base, comprising Certificates of Indebtedness, Government issued currency notes and coins in circulation, the Aggregate Balance and Exchange Fund Bills and Notes issued, amounted to HK$1,280.4 billion. Claims on the private sector in Hong Kong amounted to HK$236.7 billion. Foreign liabilities, representing fees payable to the Exchange Fund's external managers, amounted to HK$300 million.
In India, key benchmark indices surged, led by fag-end buying in bluechips as wholesale inflation sliding to a 7-month low triggered hopes of some easing in interest rates. Easing of inflation based on the wholesale price index to 8-month low of 5.05% in January 2014, strong response to the telecom spectrum auction which will help the government achieve its fiscal deficit target of 4.8% of gross domestic product for the year ending 31 March 2014, and data showing that foreign funds were net buyers of Indian stocks on Thursday, 13 February 2014, boosted sentiment. Gains in Asian and European stocks also underpinned sentiment on the domestic bourses.
After losing 255 points in the previous session, the BSE Sensex rebounded from four-month lows and ended 173.47 points, or 0.86%, higher at 20,366.82. The surge was led by stocks of IT, telecom, banking and refinery sectors.
State Bank of India fell after weak Q3 results. M&M dropped in volatile trade after announcing Q3 results. Bharti Airtel rose after the company said it has acquired 115.0 MHz spectrum for a total consideration of Rs 18530 crore in the just concluded spectrum auction conducted by the Government of India. Idea Cellular gained after the company said that the winning of a total of 65.2 MHz of spectrum in the auction gives the company necessary impetus to expand the network in Delhi to 3G on 900 MHz and the launch 4G in 8 of its key revenue markets at an appropriate juncture. Index heavyweight Reliance Industries (RIL) rose after the company announced that its telecom unit Reliance Jio Infocomm has successfully acquired the right to use spectrum in 14 key circles across India on the 1800 MHz band in the recently concluded spectrum auction.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index added 0.3%. Malaysia's KLSE Composite rose 0.12%. Singapore's Straits Times index fell 0.04%. Taiwan's Taiex index added 0.54%. South Korea's KOSPI index added 0.69%. Indonesia's Jakarta Composite jumped 0.35%.
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