U.S. stocks kicked off the second quarter higher on Tuesday, with the S&P 500 setting a fresh intraday record, after data from the Institute for Supply Management (ISM) showed manufacturing activity improved for a second straight month in March.
Persistent weakness in China's manufacturing sector has reinforced speculation that Chinese policy maker would loosen monetary policy in order to keep the world's second-biggest economy growing at the government's target rate of 7.5%.
The HSBC Markit Purchasing Managers' Index (PMI), which focuses more on firms in the private sector, fell to an eight-month low of 48 last month from 48.5 in February. The official PMI, which covers more large and state-owned companies, edged up to 50.3 last month from 50.2 in February, pointing to a slight expansion. The index has been below the 50 level that separates contraction from expansion since January.
Chinese Premier Li Keqiang said last week that the necessary policies were in place and the government would push ahead with infrastructure investment. Economists at top government think-tanks believe some of this spending is already under way, as Mr Li had outlined policy reserves in a report to Parliament last month.
Investors were also anticipating the government or the Bank of Japan would announce measures to offset the impact of a sales tax hike and after a weak outlook for companies. Japan's sales tax will increase to 8% from 5% on Tuesday, a move needed to help stabilize government finances but also a possible setback to economic recovery.
Among Asian bourses, Japanese share market finished the session sharp higher, powered by tracking a rally on Wall Street overnight and US dollar rallies against the Japanese yen. The benchmark Nikkei 225 index added 1.04% to close at 14,946.32.99, while the Topix index of all first-section shares rose 0.59% to 1,211.36.
Tokyo share market opened higher today, on tracking positive lead from Wall Street overnight, which saw the S&P500 jump 0.7%, while the Nasdaq surged 1.6% after solid manufacturing data and a Federal Reserve assurance of support for the U.S. economy. Meanwhile, bargain buying pressure in the local market accelerated further due to yen depreciation against basket of major currencies and after a weak outlook for companies raised hopes the Bank of Japan would launch additional monetary stimulus in coming months.
Automakers Nissan Motor Co added 1.5% to 935 yen and Mazda Motor Corp rose 2.8% to 479 yen after reporting strong U.S. auto sales figures for March on Tuesday.
Renesas Electronics shares surged 6% to 831 yen after the leading Nikkei business daily said Apple was in talks with the Japanese chipmaker to buy one of its units for about $480 million.
The Japanese utility sector was under pressure with Kyushu Electric Power down 5% on reports that it is seeking a capital injection from state-owned Development Bank of Japan. The news sparked sector-wide losses; Kansai Electric Power and Hokuriku Electric eased nearly 2% each.
Japanese consumer confidence improved in March from three months earlier for the first time in three quarters as more people reported their own or family's income had risen from a year earlier, according to the results of the Bank of Japan's quarterly survey released Wednesday. The data also showed that more people said prices had risen from a year earlier, judging from costs for daily necessities, gasoline, rents and utilities, but fewer people expect prices to rise in 12 months ahead. The BOJ's consumer sentiment diffusion index for the current climate rose 2.8 points to -6.4 in March after falling 0.9 points to -9.2 in December. It compared with -8.3 in September, -4.8 in June, -22.6 in March 2013 and -50.6 in December 2012. By contrast, the outlook index projecting conditions a year ahead fell for the third consecutive quarter, down 2.5 points at -16.5 from -14.0 in December. More people projected that their incomes would rise in the next 12 months on the back of the improving labor market conditions amid a modest economic recovery.
In Australia, key benchmark indices of the Australian stock market finished higher, as gains in bullion, metal & mining, consumer discretionary and industrial blue chips were more than offset by losses in property trusts, the utilities and IT businesses. Australia's benchmark S&P/ASX200 and the broader All Ordinaries both finished 0.26% higher at 5403.30 and 5408.80, respectively.
Shares of materials and resources companies climbed the most in Sydney today, with index heavyweight BHP Billiton 0.9% to A$37.37, following reports of A$20 billion demerger plan and after copper prices rose to a more than three-week high following an earthquake in Chile. Rio Tinto added 0.4% to A$64.10 and Fortescue Metals Group added 2.8% to A$5.46, boosted by a further rise in the iron ore price. Australia's biggest gold producer Newcrest was up 2.1% to A$9.88.
Goodman Fielder shares plummeted 22.1% to A$0.475 following a profit warning from the wholesale food manufacturer and supplier. The company expects full-year profit to come in up to A$27 million. Goodman Fielder warned that it expected to write-down some of its assets, with a close eye on its baking and grocery divisions.
Building approval numbers slumped by 5% in February while the number of job vacancies across Australia rose by 2.6% in the three months to February.
Australian dollar declined against greenback and other major currencies on Wednesday, as new building approvals data came in softer than expected. The weakness in domestic currency against the US dollar were also due to the Reserve Bank of Australia's comments on Tuesday that the currency's recent appreciation would be less supportive of the economy's transition away from mining-led growth. The Australian dollar was quoted at 0.9247 against US dollar, 0.6699 against the euro, 95.99 against the Japanese yen
In China, Mainland China share market advanced, with realty developers, materials, and energy blue chips led rally. The benchmark Shanghai Composite Index, which tracks both A and B shares, added 0.56% from prior day closure to finish at 2058.99, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 0.81% to 2180.73
Shanghai market opened higher today, following new record highs on Wall Street overnight and growing speculation government will do more to support domestic growth. Meanwhile, Mainland shares extended gains thanks to strong gains in property developers after the Shanghai Securities News reported that officials in Hangzhou and Changsha are considering ways to loosen property purchase restrictions.
Shares of Chinese property developers rallied on speculation the government will relax housing curbs after the Shanghai Securities News said some Chinese cities are discussing easing curbs on home purchases. Poly Real Estate, the second-biggest developer, surged 7% to 8.24 yuan. Gemdale Corp. advanced 2.8% to 7.09 yuan. China Vanke Co., the largest developer, surged 2.6% to 8.29 yuan in Shenzhen. Anhui Conch jumped 4.1% to 16.96 yuan.
Daqin Railway advanced 0.8% to 6.75 yuan after the nation's economic planner National Development and Reform Commission said it will allow the market to determine rail freight prices.
In Hong Kong, HK blue chips closed firmer on Wednesday, led by the property counters, with the benchmark index rising 150 points at one stage. The benchmark Hang Seng Index added 75.40 points, or 0.34%, to 22523.94.
Among the HK 50 blue chips, 29 rose and 18 fell, with 3 stocks remaining steady. Hong Kong Exchanges & Clearing advanced 5.4% to HK$126, contributing 22-points gains to the benchmark Index and becoming the best-performing blue chip, on rumored that overseas institutions could invest directly in A-share market via the local bourse. Bank of China declined 2% to HK$3.38, contributing 17-points losses to the benchmark Index and becoming the worst-performing blue chip.
Realty developers' shares rose sharply after the HK government announced land sale plan without a HK land for HK people provision. SHKP (00016) jumped 4.1% to HK$99.75. Cheung Kong (00001) put on 3.3% to HK$11.62 and HK$134.9. Hang Lung Prop (00101), Sino Land (00083), New World (00017) and Henderson Land (00012) all shot up more than 3%. Mainland developers were also higher on news that Hangzhou and Changsha eased the home purchase restriction. Hopson (00754) surged 11.6% to HK$8.25. CR Land (01109) gained 4.7% to HK$17.94. COLI (00688) added 3.2% to HK$21.05.
The Land Registry today said the number of sale and purchase agreements for all building units received for registration in March was 4,184, an increase of 4.9% compared with February but down 38.8% from a year earlier. The 12-month moving average for March was 4,975, 4.3% below the 12-month moving average for February and 48.6% below that for the same month last year. The total consideration for sale and purchase agreements in March was HK$29.4 billion, an increase of 13.3% month-on-month but down 33.8% year-on-year. Among the sale and purchase agreements, 3,141 were for residential units, down 0.6% from a month earlier and down 30.7% from a year ago. The total consideration for sale and purchase agreements in respect of residential units was HK$20.6 billion, down 2.5% month-on-month and down 24% year-on-year.
In India, Indian stocks extended their recent strong gains today, as gains in European and Asian stocks boosted sentiment on the domestic bourses. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Tuesday, 1 April 2014. FIIs bought shares worth a net Rs 385.66 crore on Tuesday, 1 April 2014, as per provisional data from the stock exchanges.
The S&P BSE Sensex garnered 105.05 points or 0.47% to settle at 22,551.49, a record closing high for the barometer index. The CNX Nifty garnered 31.50 points or 0.47% to settle at 6,752.55, a record closing high.
Reliance Industries (RIL) rose 1.37% to Rs 954. The stock hit 52-week high of Rs 959.80 in intraday trade. Export Development Canada (EDC), Canada's leading financier and insurer of Canadian exporting companies, has announced $500 million in financing for RIL. The transaction is among the largest financing packages that EDC has ever extended in Asia, RIL said during trading hours today, 2 April 2014.
Coal India declined 1.26%. The company said during market hours that as per provisional basis the actual production of the company and its subsidiary companies was 101% of targeted production at 53.40 million tonnes in March 2014. The actual offtake of the company and its subsidiary companies was 94% of targeted offtake at 44.80 million tonnes in March 2014.
Tata Motors gained 2.31%. The company's total sales fell 29.6% to 51,184 units in March 2014 over March 2013. Total domestic sales fell 33.5% to 45,996 units in March 2014 over March 2013. Total exports jumped 46.1% to 5,188 units in March 2014 over March 2013. The sales figures were announced after market hours on Tuesday, 1 April 2014.
Ashok Leyland rose 3.31%. The company after market hours on Tuesday, 1 April 2014 reported a 27% decline in its total sales at 10,286 units in March 2014 over March 2013. Sales of medium and heavy commercial vehicle declined by 20% to 7,723 units in March 2014 over March 2013. Sales of light commercial vehicles declined 40.74% to 2,563 units in March 2014 over March 2013. The company's sales fell 22.05% to 89,342 units in the year ended 31 March 2014 over the year ended 31 March 2013.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index added 0.36%. South Korea's KOSPI index was up 0.26%. Malaysia's KLSE Composite rose 0.23%. Singapore's Straits Times index fell 0.18%. Indonesia's Jakarta Composite Index shed 0.08%. New Zealand's NZX50 fell 0.12%.
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