Investment rationale in the Asia Pacific region underpinned after China's statistic department figures revealed that the world's second largest economy continues to make headway. The gross domestic product (GDP) of China in the first three quarters of this year was 38,676.2 billion yuan, a year-on-year increase of 7.7% calculated at comparable prices. Specifically, the year-on-year growth was 7.7% for the first quarter, 7.5% for the second quarter and 7.8% for the third quarter. The value added of the primary industry was 3,566.9 billion yuan, up by 3.4%; that of the secondary industry was 17,511.8 billion yuan, up by 7.8%; and that of the tertiary industry was 17,597.5 billion yuan, up by 8.4%. The gross domestic product of the third quarter of 2013 went up by 2.2% on a quarterly basis.
Chinese industrial production rose at a 10.2% annual rate in September, down from 10.4% in August (which was the strongest growth in 17 months). Fixed-asset investment excluding rural households increased 20.2% in the January-to-September period from a year earlier. Retail sales rose at a 13.3% annual rate in September, down from 13.4% in the year to August (which was the strongest growth in eight months).
Meanwhile, risk sentiments also got a lift from speculation the Federal Reserve would maintain monetary stimulus to the US economy under Fed candidate Janet Yellen into CY2014 as the 16-day partial US government shutdown will curb economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
U.S. President Barack Obama signed a bill on Thursday that ended a 16-day government shutdown after the Senate and House approved budget legislation and extended the debt limit. The final agreement makes only minor changes to Obama's health care law by requiring income verification for people receiving health care subsidies from the government. The U.S. budget deal, pulling the world's largest economy back from the brink of an historic debt default, funds the government until January 15 and raises the borrowing limit through to February 7.
Among Asian bourses, the Australian financial market has gained ground for a fourth day in row, buoying the benchmark S&P/ASX200 index up 38.40 points to 5321.50, while the broader All Ordinaries index rose 39.10 points to 5321.
Shares of precious metal producers climbed the most in Sydney after sharp rally in bullion prices in the international market. Newcrest Mining jumped 5.3% to A$10.68 after a more than 3% surge in gold futures overnight and as beating expectations to produce 586573 ounces of gold during the September quarter, a 27% improvement on this time last year. Meanwhile, Perseus Mining rose 7.2% to A$0.52 and uranium miner Paladin Energy climbed up 10% to A$0.44.
Santos shares declined 0.9% to A$14.75 after the oil producer posted a drop in third-quarter output and placing its full-year production outlook at the low end of its previous guidance.
Petroleum producer Santos has warned its full year production will be at the low end of predictions. The company's full year production for calendar 2013 is expected to be at the low end of its previously stated guidance of 52 to 55 million barrels of oil equivalent (mmboe), due mainly to disruption at its Chim Sao oil field operations and deferred production at its Fletcher Finucane project. The company announced record sales revenue of $1.03 billion for the third quarter, a 20% lift on a year ago. Oil production was at its highest in six years, backed by strong oil prices and higher third party sales volumes, the company said. Quarterly production of 13.4 million mmboe was 1.0 lower than the third quarter of 2012.The average gas price of $5.98 a gigajoule for the quarter was a record and 10% higher than the corresponding quarter.
Stocks in Warrnambool Cheese & Butter Factory Co jumped 6.3% to A$7.89 after announcing another takeover offer for A$7.50 cash per WCB share, beating two other standing bids for the company. This edges out the A$7.00 cash per share offer by Saputo and represents 13% premium to the implied value of Bega's scrip-based offer.
In Japan, shares in Tokyo market finished lower after moving between gains and losses, snapping a seven-day rally, as investors selling stocks to lock in recent gains due to appreciation of the yen and lingering concerns about the U.S. economy. Tokyo market shrugged out a strong lead from Wall Street overnight and slew of upbeat Chinese economic data. The benchmark Nikkei Stock Average slipped 0.17% to 14561.54 while the broader Topix index lost 0.06% to 1205.52.
Japanese blue-chip exporters declined the most in Tokyo after an overnight rise in the yen, with industrial major Komatsu falling 1.13% to 2366 yen and steel mill JFE Holdings Inc sank 2.75% to 2474 yen. Sony Corp dropped 0.41% to 1930 yen and Nintendo Co lost 0.95% to 11470 yen in spite of reporting strong U.S. videogame sales data overnight, with Nintendo's September sales more than tripling.
In China, Chinese market finished modest higher, with the benchmark Shanghai Composite index rising 0.24% to 2193, after figures revealed that the world's second largest economy continues to make headway in the third quarter.
Shares of retailers and consumer goods companies were sharp higher in China after better than expected retail sales data. Youngor surged by the 10% daily limit to 9.22 yuan after saying it paid 340 million yuan ($55.8 million) for a 4.04% stake in UnionPay Merchants Service Co. BYD jumped 7.7% to 40.75 yuan after Wu Qizhou, the deputy head of Shanghai's municipal environmental protection bureau, said at a briefing today that Shanghai will make a big push into alternative energy cars.
Shares of industrial companies went up in China, with rail-maker leading the way up. CSR gained 1.7% to 4.19 yuan and China CNR advanced 3.2% to 4.55 yuan on hopes of new order from Australia as Premier Li said after meeting Quentin Bryce, Australia's Governor-General, in Beijing, that China hopes to cooperate with Australia on high-speed railway.
Shares of defensive utilities companies declined in China as investors shifted toward high yielding stocks after upbeat domestic GDP data. Inner Mongolia Mengdian fell 3.5% to 3.61 yuan. Hubei Energy Group Co lost 3.2% to 5.59 yuan.
In Hong Kong, shares in HK city market advanced, with the benchmark Hang Seng index rising 1.06% to 23340.10.
Among the 50 HK blue chips, 32 rose and 14 fell, with 4 stocks remaining steady. Sands China advanced 9.2% to HK$58 after the Macau subsidiary of Las Vegas Sands Corp. posted a 43% rise in third-quarter net revenue to $2.34 billion, while Lenovo Group lost 1.7% to HK$8.07 following a report in The Wall Street Journal that the PC maker is considering a bid for beleaguered mobile-phone maker BlackBerry, making themselves the top blue-chip winner and loser. Heavyweights China Mobile gained 0.9% to HK$84.6 and HSBC Holdings added 1% to HK$84.85.
The Hong Kong Monetary Authority announced today the composite interest rate, which is a measure of the average cost of funds of banks, was unchanged at 0.32% at the end of September 2013, same as its level at the end of August 2013. Both the weighted funding cost for deposits and interbank funds remained steady during the month.
In India, Indian benchmark indices cut gains after striking fresh intraday high in late trade. The market sentiment was boosted after the latest data showed that China's GDP growth accelerated in Q3 September 2013. Meanwhile, sentiments also underpinned by data showing that foreign funds made substantial purchases of Indian stocks on Thursday, 17 October 2013. The Sensex was provisionally up 448.45 points or 2.2%, off 68.27 points from the day's high and up 377.18 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
In the foreign exchange market, the rupee was slightly lower against the dollar amid high intraday volatility after the Reserve Bank of India (RBI) said that its dollar window for oil marketing companies remains open, adding that any tapering would be done in a calibrated manner.
Elsewhere in the region, New Zealand's NZX 50 Index fell 0.36%. Indonesia's Jakarta Composite Index gained 0.61%. Taiwan's Taiex jumped 0.79%. South Korea's KOSPI rose 0.58%. Malaysia's KLSE Composite added 0.12%. Singapore's Straits Times index rose 0.2%.
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