Investors were upbeat after an industry report on Thursday showed manufacturing activity in the United States accelerated in February at its fastest pace in nearly four years due in part to growth in new orders.
However, concerns about China's slowing growth dented sentiment, limiting the upside move. Chinese manufacturing data pointed to a slowdown in one of the main engines of global growth. The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, fell to a seven-month low of 48.3 in February, compared with a final reading of 49.5 in January.
Among Asian bourses, Japan's stock market advanced for the first time in three sessions in row, thanks to a strong lead from Wall Street overnight and depreciation of Japanese currency against dollar. The benchmark Nikkei-225 index added 416.49 points, or 2.88%, to finish the session at 14865.67, while the broader Topix index of all first-section shares grew 27.75 points, or 2.32%, to 1222.31. For the week, the Nikkei225 index was 3.9% higher, its best weekly performance since November. The Nikkei however, remains Asia's worst performer so far this year down 8.8%.
The Tokyo stock market opened on the front foot, taking its lead from the U.S., where stocks on Wall Street ignored a mixed batch of economic data and edged closer to a record high. Meanwhile, momentum accelerated further after the Bank of Japan released minutes of its January policy meeting. Board members said that in order to avoid any misunderstanding about the BOJ's program of ambitious monetary easing, the bank needed to provide a clear explanation that it did not strictly set this to end in two years.
Shares of Japanese Oil & Coal companies surged the most, with Showa Shell Sekiyu K.K., an oil refiner, up 5.4% to 1,012 yen. JX Holdings Inc., a refiner, added 4.6% to 528 yen.
Aeon Financial jumped 8.3% to 2,537 yen after saying it will buy back as many as 12 million shares within a year for 25 billion yen.
KDDI added 2.9% to 5,866 yen on reports the mobile phone service expects to post an operating profit of more than 730 billion yen in the fiscal year ending March 2015.
In Australia, Australian stock market rose modestly, registering six wins in a row, thanks to a strong lead from Wall Street overnight and generally upbeat earnings results. The benchmark S&P/ASX 200 index advanced 26.40 points to finish at 5438.70, while the broader All Ordinaries grew 28.10 points to 5449.40. For the course of week, the benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose 1.5%. The benchmark index has rallied 4.8% this month and is now ahead 1.6% year-to- date, after losing 3.3% in January.
The Australian market opened on the front foot, taking its lead from the U.S., where stocks on Wall Street ignored a mixed batch of economic data and edged closer to a record high. Meanwhile, rising momentum continued throughout the session as half-year company reporting season delivered some better than expected results and delighted investors with a raft of interim dividend increases.
IAG shares rose 0.5% to A$5.55 after the insurer lifted its first half profit by almost 40% to A$642 million, despite a decline in its margins due to higher than expected claims. The result was skewed by A$182 million loss relating to the company's discontinued UK business in the prior half. Shareholders will receive an interim dividend of 13c per share.
Crown Resorts shares fell 3.2% to A16.68 after the gaming and Entertainment Company disappointed with its first half normalised profit of A$315 million. Reported NPAT rose 111.6% to A$382.5 million, with that result underpinned by strength from its Macau business. Weak consumer sentiment saw revenue at Crown Melbourne fall by more than 9%.
Billabong shares rose 1.4% to 74c after the surfwear retailer posted another loss of A$126 million for the half, an improvement on last year's A$537 deficit.
Santos shares dropped 4.8% to A$13.59 after the company disappointed with its result. The energy company saw a 17% drop in full year underlying profit to A$504 million. The company will pay a final dividend of 15 cents per share.
In China, Mainland China market declined for second day in row, after weak Chinese manufacturing data pointed to a slowdown in one of the main engines of global growth. The Shanghai Composite Index declined 1.2% to 2,113.69 at the close, sending the measure to a loss of 0.1% for the week.
Shares of Mainland energy companies declined steeply on profit booking. Sinopec, Asia's biggest oil refiner, dropped 3.1% to 5.01 yuan. PetroChina slid 3.9% to 7.68 yuan. Losses for Sinopec and PetroChina represented about 36% of the benchmark index's decline. Sinopec Shanghai Petrochemical Co. (600688), China's largest maker of ethylene, tumbled 9.6% to 3.48 yuan.
Shares of brokerage houses declined on concerns about fall in commission fees amid tight competition in the industry players. Sinolink Securities and Tencent introduced the nation's lowest commission fee yesterday for their online stock-trading service, the Standard reported, citing the companies' websites. The commission fee is 0.02%, compared with the industry average 0.08%, it said. Citic Securities, China's biggest listed brokerage, lost 1.5% to 10.98 yuan. Haitong Securities Co., the second largest, slid 1.7% to 9.94 yuan. Sinolink Securities retreated 1.8% to 23.68 yuan.
In Hong Kong, stocks of the Hong Kong market climbed up, sending the benchmark Hang Seng index higher by 0.78% to finish at 22568.24, as brighter U.S. economic data boosted appetite for bargain-buying that led to a broad rally. For the week, Hang Seng Index added 1.2%.
The HK stock market opened on the front foot, on the heels of strong lead from Wall Street overnight. Meanwhile, momentum also supported by tracking strong rally in Tencent Holdings and Cathay Pacific Airways.
Among the HK 50 blue chips, 32 rose and 17 fell, with one stock remaining unchanged. Cathay Pacific gained 4% to HK$15.66 to become the biggest contributor to the Hang Seng Index's advance. Shares of Lenovo Group slid 2.4% to HK$7.90, the biggest drop on the Hang Seng Index, after Bank of America Corp. cut its rating on the world's biggest maker of personal computers to underperform from buy.
Elsewhere, Tencent rose 2.8% to HK$580.50, while Belle International Holdings, China's largest seller of footwear, advanced 3% to HK$8.80.
Citic Telecom International Holdings Ltd. jumped 4% to HK$2.87, extending its gains since reporting earnings on Feb. 18. The stock jumped 23% for the week.
Sinopec fell 1.2% to HK$6.54 on profit booking. The stock surged yesterday after announcing plans to seek private investors for its unit.
Shares of Parkson Retail Group slumped 7.4% to HK$2.27 after the department-store operator's posted 58% dip in full-year net income to 353.6 million yuan.
AIA (01299) edged up 0.1% to HK$37.3 after the company reported earnings decline of 7% to HK$2.82 billion.
Hong Kong's overall consumer prices rose 4.6% in January over the same month a year earlier, larger than the corresponding increase of 4.3% in December 2013, data from the Census and Statistics Department showed. After netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in January was 4.3%, larger than that in December's 3.9% rise, mainly due to the larger increases in the charges for package tours around Lunar New Year.
In India, Indian stock market closed higher on the last trading session of the week, with the market sentiment boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 20 February 2014. Gains in Asian and European stocks also aided the upmove on the domestic bourses.
The S&P BSE Sensex garnered 164.11 points or 0.8% to settle at 20,700.75, its highest closing level since 19 February 2014. The CNX Nifty garnered 64 points or 1.05% to settle at 6,155.45, its highest closing level since 24 January 2014.
Cement stocks surged on reports that cement makers have raised cement prices in North India this month. ACC, Ambuja Cements, Shree Cement and UltraTech Cement rose 3.7% to 6.09%. "Prices are up by Rs 30-45 per bag month-on-month in February (over Jan-14 average) across all these markets (North largely Delhi, Rajasthan and Punjab)," a brokerage wrote in an email to clients today, 21 February 2014, according to reports.
Bank stocks were mostly higher. Among private sector banks, ICICI Bank (up 1.83%), Yes Bank (up 1.16%), Federal Bank (up 1.38%), and AXIS Bank (up 2.7%), gained. HDFC Bank (down 0.19%) and Kotak Mahindra Bank (down 0.37%) declined. Among PSU bank stocks, State Bank of India, Canara Bank, Bank of India, Bank of Baroda and Punjab National Bank shed 0.24% to 1.05%. Union Bank of India fell 0.29%.
Metal and mining stocks edged higher. Sesa Sterlite (up 0.27%), NMDC (up 1.29%), Hindalco Industries (up 0.31%), Hindustan Copper (up 0.26%), JSW Steel (up 2.31%), National Aluminum Company (up 0.47%), Hindustan Zinc (up 0.33%), Jindal Steel & Power (JSPL) (up 1.21%) and Tata Steel (up 1.8%) gained. Steel Authority of India (Sail) fell 0.51%.
Many pharma stocks gained on renewed buying. Wockhardt (up 0.98%), Cadila Healthcare (up 0.84%), and Glenmark Pharmaceuticals (up 0.34%) gained. Cipla (down 0.51%), Lupin (down 0.29%) Ranbaxy Laboratories (down 1.84%) and Sun Pharmaceutical Industries (down 0.82%) declined.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 added 0.36%. Taiwan's Taiex index rose 0.91%. South Korea's KOSPI index added 1.41%. Indonesia's Jakarta Composite was up 1.04%. Singapore's Straits Times index rose 0.43%. Malaysia's KLSE Composite jumped 0.16%.
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