Asia Pacific share market has begun 2015 trading session on a positive note, brushing off further evidence of weakness in China's economy.
There was more evidence of weakness in China's huge manufacturing sector in December, a soft end to the year that suggests the country will likely miss its 2014 economic growth target. The government's official manufacturing Purchasing Managers Index, a gauge of conditions in the industry, slipped to 50.1 in December, the lowest reading in a year and a half, from 50.3 a month earlier, according to data released yesterday by the statistics bureau and the China Federation of Logistics and Purchasing. A competing index released on Wednesday by HSBC and research firm Markit dropped to 49.6 in December, from 50.0 the previous month. Any number above 50 indicates expansion.
Regional shares gains on the upside was, however, limited as investors awaited for cues from new economic data and central bank meetings in coming weeks. Eurozone will release PMI manufacturing final and Italy will also release PMI manufacturing. UK will release PMI manufacturing, mortgage approvals and M4. US will release ISM manufacturing and construction spending.
Trading in US index futures indicated that the Dow could rise 113 points at the opening bell today, 2 January 2015. US markets had remained shut yesterday, 1 January 2015 for New Year's Day holiday.
Among Asian bourses
Australia stocks rise 0.5%
Australian share market closed first trading session of 2015 on a positive note, brushing off further evidence of weakness in China's economy, with mining stocks leading the rally. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each lifted by 0.5% to 5435.9 points and 5415 points, respectively.
Shares of mining companies advanced the most in Sydney, on tracking strength in commodity prices. The spot price for iron ore, landed in China, rose for the third consecutive session to $71.26 a tonne. Among the miners, BHP Billiton and Rio Tinto each added 0.6% to A$29.54 and A$58.33 respectively. Australia's third largest iron ore miner Fortescue Metals Group rose 3.3% to A$2.83. Atlas Iron was soared up 39.4% to A$0.23 in the wake of the spot price of iron ore recovering above the company's stated break-even point of $68 a tonne earlier in the week. Mining services company Emeco rose 3.5% to A$0.15 after refinancing its A$50 million syndicated debt facility with a new $75 million asset-backed loan.
Hang Seng gains 0.9%
Hong Kong share market closed higher in the first trading day of 2015, with Mainland developers and financials stocks leading rally amid speculation the Beijing will further ease monetary policy to support a slowing economy. The Hang Seng Index ended 252.78 points, or 1.07%, up at 23857.82, off an intra-day high of 23867.46 and low of 23635.60. Turnover amounted to HK$72.72 billion. The stock market was closed on Thursday for New Year holidays.
Shares of Mainland developers and financial companies jumped amid speculation the government will further ease monetary policy to support a slowing economy. China Vanke, the China's biggest developer by sales, jumped 10.8% to HK$19.16. China Overseas Land & Investment increased 8% to HK$24.90, while China Resources Land jumped 6.9% to HK$21.85. PICC Property & Casualty Co climbed 1.3% to HK$15.28 and New China Life Insurance Co. advanced 4.3% to HK$40.85.
Railway stocks advanced, with CSR Co adding 18% to HK$12.32 and China CNR Corp rising 16.4% to HK$12.94, extending their Dec. 31 increase, after the train builders announced a merger agreement. Other railway companies also gained, with China Railway Construction Corp. rising 4.3% to HK$10.30 and Zhuzhou CSR Times Electric Co. jumping 10% to HK$49.95.
Sensex extends gain in afternoon
Indian stock market extended gains and hit fresh intraday high in afternoon trade. At 13:16 IST, the S&P BSE Sensex was up 371.45 points or 1.35% at 27,878.99. The CNX Nifty was up 110.75 points or 1.34% at 8,394.75.
Coal India rose after announcing production and offtake figures for December 2014. Cement shares edged higher after the government after trading hours yesterday, 1 January 2015, announced increase in excise duty on petrol and diesel by Rs 2 a litre each to raise money to build 15,000 kilometers of roads during current and next financial year.
The INR edged higher against the US dollar in choppy trade due to dollar demand from importers. The partially convertible rupee was hovering at 63.32, compared with its close of 63.34 during the previous trading session.
Elsewhere in the Asia Pacific region: South Korea KOSPI was up 0.57% to 1926.44. Singapore's Straits Times index rose 0.12% at 3369.15. Indonesia's Jakarta Composite index added 0.28% to 5241.82. Malaysia's KLCI fell 0.5% to 1752.84. Markets in China, Japan, New Zealand, the Philippines, Taiwan and Thailand are closed for holidays.
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