Asia Pacific share market finished firmly higher on last trading session of the week, Friday, 09 October 2015, as appetite for risk assets boosted up after minutes of the Federal Reserve's latest meeting further quelled expectations of an imminent U.S. interest rate hike. MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.8%, on track for a robust weekly gain of 6.8%.
Minutes of the Sept. 16-17 Federal Open Market Committee meeting showed policy makers are confident about the U.S. economy as unemployment, consumer spending and the housing market show encouraging signs. Still, threats from abroad were enough for officials to forgo raising interest rates amid worries that China's slowing growth will weigh on emerging markets
Among Asian bourses
Australia market soars 1.3%
The Australian share market finished the session with strong footing, following a positive lead from Wall Street overnight, fuelled by dovish signals from the US Federal Reserve minutes. All ASX industry group added strength to the market, with bullion, material, energy, and financial blue-chip stocks leading advancers. The benchmark S&P/ASX 200 index and the broader All Ordinaries index both gained 1.3% to 5279.70 points and 5309.20 points, respectively.
Shares of energy and resources companies were top gainers in the Sydney financial market today, on the back of surge in commodities such as oil and iron ore prices after the minutes showed Fed members are waiting to see how much the global economic slowdown is affecting the American economy. Among energy stocks, Woodside Petroleum advanced 2.6% to A$32.61, Origin Energy 1.1% to A$6.50, Santos 8.5% to A$5.97, and Worleyparsons 8.1% to A$7.65. Among top miners, BHP Billiton gained 2.4% to A$25.60 and Rio Tinto rose 3.8% at A$55.18. Iron-ore producer Fortescue Metals Group finished up 3.2% to A$2.28.Gold miner Newcrest surged 3.5% to A$14.49 and Perseus Mining 5.6% to A$0.375.
Nikkei surges 1.64% after dovish Fed minutes
The Japanese share market soared, with sentiment boosted by a strong lead from Wall Street overnight and the release of the US Federal Reserve's September policy meeting minutes, which indicated the central bank isn't in a hurry to raise U.S. interest rates. Total 31 out of 33 TSE first-section sector sub-indexes added strength, with Iron & Steel, Nonferrous Metals, Construction, Mining, Warehousing & Harbor Transportation Services, Pulp & Paper, Rubber Products, Machinery, Transportation Equipment, and Marine Transportation issues being major gainers. The Nikkei Stock Average surged 297.50 points, or 1.64%, to end at 18438.67 points, meanwhile the broader Topix index jumped 2.28%, or 33.73 points, to 1515.13 at the close. For the week, the Topix climbed 4.9% and the Nikkei225 index rose 4%. Japanese markets will close for a holiday on Monday.
Shares of resource-related sectors led the Tokyo market today market, with Kobe Steel rising 6.9% after Bank of America Corp. raised its rating on the shares. Trading firm Sumitomo Corp. rose 6.2%. Nippon Steel & Sumitomo Metal Corp. gained 5.3%. Oil explorer Inpex Corp. added 3.6%.
Toshiba Corp. rose 5.7% after reports that the company's memory operations may be a target for acquisition by Chinese computer maker Tsinghua Unisplendour Co.
Nisshinbo Holdings Inc. added 6.5% after reports that the textile maker will pay 10 billion yen ($83 million) to buy Nanbu Plastics Co.
Shares of clothing retailer Fast Retailing Co. fell 9.7% after the company projected slower sales and earnings growth for the current fiscal year ending in August 2016.
China market extends gain
The Mainland China's stock market advanced for second consecutive session, catching up a rally in global equities after the FOMC minutes released overnight pointed the U.S. Federal Reserve will continue its ultra-easy monetary policy for now. Risk sentiments also bolstered by the creation of a global payment system which will boost the globalization of the yuan. All 10 SSE sectors added strength to the key index, with telecommunication, technology, energy, material, and financial stocks leading gains. The Shanghai Composite Index advanced 1.27%, or 39.79 points, to 3183.15 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.47%, or 26.24 points, to 1811.63. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, grew 1.2%, or 26.34 points, to close at 2216.66.
The first phase of the China International Payment System, officially launched in Shanghai on Thursday, will provide capital settlement and clearing services for cross-border yuan transactions conducted by both domestic and overseas financial institutions. Developed by the People' Bank of China, CIPS provides an independent cross-border payment and clearing system connecting onshore and offshore clearing markets and participating banks. CIPS uses global payment standards and enables same-day clearing across Asia, Oceania, Europe and other time zones through extended operating hours. By integrating the existing renminbi (yuan) cross-border payment and settlement channels, CIPS will improve the efficiency of cross-border clearing to meet the increasing demand for renminbi worldwide.
Ping An Insurance (Group) Co. climbed 3.2% after a statement jointly made by the National Development and Reform Commission and the China Insurance Regulatory Commission that China will support insurers buying corporate bonds sold by major construction companies.
Hong Kong market closes 0.46% up
Hong Kong stock market closed higher, as appetite for risk assets boosted up on tracking gain in the Wall Street overnight after minutes of the Federal Reserve's latest meeting further quelled expectations of an imminent U.S. interest rate hike. The Hang Seng Index advanced 103.89 points, or 0.46%, at 22458.80 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 119.38 points, or 1.16%, to 10406.79 points. Turnover was HK$93.5 billion, similar to HK$93.45 billion on Thursday.
Shares of energy players went up on taking cue from a jump in oil prices. Oil traded above $50 a barrel on Thursday for the first time since July on signs rising demand will trim the surplus that drove prices to the lowest level in six years. CNOOC (00883) rose 3.6% to HK$9.27, PetroChina (00857) 2.6% to HK$6.30 and Sinopec Corp (00386) 0.7% to HK$5.45.
Shares of local banks gained broadly. BOCHK (02388) shot up 4.29% to HK$25.55. BEA (00023) picked up 2.74% to HK$28.15. Hang Seng Bank (00011) increased 0.28% to HK$142.3.
Sensex regains 27,000 level
Gains in metal stocks and index heavyweights ITC and Infosys aided a recovery for key benchmark indices which had erased a lion's portion of intraday gains in afternoon trade from an initial surge. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 168.18 points or 0.63% at 27,013.99. The Nifty was currently up 41.30 points or 0.51% at 8,170.65.
IndusInd Bank gained 0.69% after reporting good Q2 results. The bank's net profit rose 30.18% to Rs 560.04 crore on 20.47% rise in total income to Rs 3581.31 crore in Q2 September 2015 over Q2 September 2014. The bank announced result during market hours today, 9 October 2015.
On absolute basis, IndusInd Bank's gross non-performing assets (NPAs) stood at Rs 602.10 crore as on 30 September 2015, compared with Rs 570.12 crore as on 30 June 2015 and Rs 654.54 crore as on 30 September 2014. The ratio of gross NPAs to gross advances stood at 0.77% as on 30 September 2015 as against 0.79% as on 30 June 2015 and 1.08% as on 30 September 2014. The ratio of net NPAs to net advances stood at 0.31% as on 30 September 2015. The ratio was unchanged from the level as 30 June 2015 and was a tad lower than 0.33% as on 30 September 2014.
Telecom stocks declined. Tata Teleservices (Maharashtra) (down 1.61%), Reliance Communications (down 1.64%) and Idea Cellular (down 0.16%) declined. Bharti Airtel rose 0.74%.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 rose 0.2% to 5638.79. Singapore's Straits Times index added 1.8% at 2998.50. Indonesia's Jakarta Composite index rose 2.2% to 4589.34. Malaysia's KLCI climbed up 1% to 1708.66. Financial market of Taiwan and South Korea closed for national holiday.
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