Appetite for cyclical assets underpinned on reinforcing expectations the US Federal Reserve would continue monetary stimulus until at least the first quarter of next year. The bets on continual of stimulus measures spread after weaker than expected U.S. hiring and durable goods orders for September coupled with the 16-day government shutdown that took at least $24 billion out of the economy.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting tomorrow, 29 October and Wednesday, 30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
Among Asia bourses, Australia's benchmark S&P/ASX 200 rose 1.02% to 5441.40 to hit another five-year high, with financials and resource heavyweights leading the rally.
Australian banking and financial stocks finished, with Australia & New Zealand Banking Group rising 1.8% to A$33.24 after an Australian Financial Review reported David Gonski, executive chairman of the Australian government's Future Fund, was being sought to run the lender. Meanwhile, Westpac Banking Corp added 0.7% to A$34.61, Commonwealth Bank 1.5% to A$77.40 and National Australia Bank 1.7% to A$36.68.
Bendigo and Adelaide Bank (BEN) shares rose 1% to A$11.19 after the lender Chairman's said in Annual General Meeting (AGM) today that the company recoded cash earnings of A$348 million which were 7.7% higher than a year before and almost twice as much as in 2009.
Among Australian miners, Rio Tinto jumped 1% to A$64.38 after selling its interest in eastern Australia's Clermont coal mine for about A$1 billion to Glencore Xstrata and Japan's Sumitomo Corporation. Kingsgate sank 5% to A$1.53 after the company said output for the September quarter dropped 18% to 50,786 ounces. Perth-based minerals explorer Greenland Minerals and Energy rose three cents, or 9.4% after Greenland's parliament voted to remove a 25-year-old ban on uranium mining.
In Japan, shares in Tokyo shares finished higher with the Nikkei Stock Average advancing 2.2% to 14,396.85, as investor shares for bottom fishing following last Friday's 2.8% slump.
Japanese exporters were sharp higher on overseas earnings optimism advanced as the yen fell 0.2% to 97.59 per dollar. Toyota Motor Corp added 1.8% to 6310 yen. Panasonic Corp rose 2.6% to 946 yen. Sony Corp rose 3.2% to 1910 yen after scoring a Credit Suisse upgrade to outperform.
KDDI Corp rose 3% to 5110 yen after the Nikkei business daily said the telecom will report a 50% increase for operating profit in the fiscal first half compared to a year earlier.
Shares of NTT DoCoMo Inc rose 0.9% to 1535 yen after posting above-forecast quarterly results Friday, while JFE Holdings Inc fell 1.4% after the steel producer also reported earnings
In China, Chinese shares finish mixed after fluctuating between gains and losses as investors risk sentiments remain on the edge amid lingering jitters over liquidity amid rising money costs. The Shanghai Composite Index rose 0.04% at 2133.87, while Shenzhen Composite Index dropped 0.2% to 1037.85.
Among Chinese active stocks, Wuliangye Yibin Co, the nation's second-largest liquor maker by market value, and Yunnan Baiyao Group Co., a producer of Chinese medicine, both declined at least 7% after reporting third-quarter results. China Oilfield Services Ltd. jumped as high as 6% after the company said nine-month earnings rose 40 percent.
In Hong Kong, shares in HK market continued to benefit from expectations of sustained quantitative easing by the Federal Reserve, overshadowing the rise of SHIBOR and the softer A-share market. The benchmark Hang Seng Index rose 91.92 points, or 0.4%, to 22790.26. The Hang Seng China Enterprises Index added 85.74 points, or 0.84%, to 10263.56.
Shares of China Telecom rose 0.5% to HK$4.06 after the company said its profit rose 17.1% YoY to Rmb14,714 million for the first three quarters of 2013. Operating revenues were Rmb238,186 million, up 13.4% from a year earlier.
China Construction Bank Corp. advanced 0.7% in Hong Kong after reporting growth in loan and fee income that helped boost third-quarter profit at the nation's second-largest lender by 9.4 percent, matching analysts' estimates.
Ping An Insurance (Group) Co. gained in Hong Kong after China's second-largest insurer said profit more than doubled in the third quarter as a stock-market rally boosted investment returns and revenue from its banking unit expanded.
South Korea's Kospi index added 0.7% after a Bank of Korea survey showed consumer sentiment rose this month to the highest level since May 2012.
Malaysia's KLSE Composite finished 0.05% up after Prime Minister Najib Razak announced a goods and services tax to help cut the fiscal deficit.
In India, Indian benchmark indices finished lower for the fifth straight session in a row, on rumour the Reserve Bank of India (RBI) may raise its main lending rate viz. the repo rate by 25 basis points after a monetary policy review tomorrow. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, settled at 1-1/2-week low. The Sensex was down 113.24 points or 0.55%, off 201.08 points from the day's high and up 19.64 points from the day's low.
Among Indian blue chips, Index heavyweight and cigarette major ITC extended Friday's losses as the company's top line growth in Q2 September 2013 disappointed investors. FMCG major Hindustan Unilever (HUL) edged lower in choppy trade after the company reported Q2 results on Saturday, 26 October 2013. Metal and mining stocks edged lower. Realty stocks edged lower ahead of the Reserve Bank of India's (RBI) Second Quarter Review of Monetary Policy 2013-14 tomorrow, 29 October 2013. PSU bank stocks led fall among banking stocks.
Elsewhere in the region, Indonesia's Jakarta Composite index added 0.2%. Taiwan's Taiex index added 0.7%. Singapore's Straits Times index jumped 0.1%. New Zealand share market closed for public holiday.
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