Asia Pacific share market advanced on Thursday, 18 September 2014, after the U.S. Federal Reserve on Wednesday renewed its pledge to keep interest rates near zero for a "considerable time." The MSCI Asia Pacific excluding Japan Index lost 0.6% to 492.20.
The US Federal Reserve at the end of a two-day policy meeting on Wednesday, 17 September 2014, maintained a commitment to keep US interest rates near zero for a "considerable time" after the bond-buying program ends even as its rate projections suggested some officials might have in mind a slightly more aggressive path of rate increases next year and in 2016 than previously thought. Low interest rates in the US have triggered large inflow of dollars into emerging markets as investors seek higher yields and India has been one of the major beneficiaries. The Fed has kept its short-term interest rate near-zero since December 2008.
Among Asian bourses
Aussie shares bounces from two-and-a-half month low
Australian share market ended higher for the first time in seven consecutive sessions after recouping intraday losses. The gain was propelled by late hour bargain buying after the US Federal Reserve stuck to a plan to begin rising near-zero interest rates only in 2015. The benchmark S&P/ASX 200 Index advanced by 8.50 points, or 0.16%, to 5415.80 and the broader All Ordinaries Index rose by 7.60 points, or 0.14%, to 5419. Turnover was relatively stronger with 2.2 billion shares worth of A$5.39 billion traded today.
The financial stocks advanced, with top three of four big banks being major gainers. Commonwealth Bank of Australia added 0.3% to A$77.58, Westpac Banking Corp 0.5% to A$33.05, and National Australia Bank 0.1% to A$33.21. ANZ Banking Group shed 0.03% to A$31.42
Materials and resources stocks declined, reversing most of yesterday's gain. Resources giant BHP Billiton declined 0.5% to A$35.68, while main rival Rio Tinto erased 0.1% to A$61.98. Fortescue Metals Group declined 2.2% to A$3.93. Arrium shares tumbled 29.2% to A$0.40, after it came out of a trading halt following a capital rising.
Oil and gas explorer AWE was up 13.7% to A$1.91 after announcing a find near Perth tipped to be the largest onshore gas discovery in Australia since the 1960s.
Purveyor of iconic Australian handbags Oroton Group jumped 12.3% to A$4.10 despite slashing its final dividend from 50 to 16 per share as it showed a 15.6% lift in underlying profit.
Nikkei rises to eight-month high on weaker yen
Japanese share market finished higher for the first time in three consecutive sessions, on the back of yen depreciation to upper 108-level against the dollar and as the US Federal Reserve has lifted its estimate for the level of the central bank's benchmark interest rate by the end of 2015. The Nikkei 225 index ended 1.13%, or 178.90 points, higher at 16067.57, while the Topix index of all first-section shares rose 0.99%, or 12.95 points, to 1317.91.
Export related stocks advanced the most in Tokyo, on the back of yen weakening against the greenback. A weaker yen inflates the profitability of Japanese exporters, while giving them scope to price goods more competitively in foreign markets. Honda Motor Co rose 2.1% to 3,712.5 yen. Komatsu added 2.5% to 2,520 yen. Nintendo Co climbed 1.5% to 12,180 yen.
Kubota gained 2% to 1,642.5 yen after Credit Suisse raised its rating on the tractor maker to outperform from neutral, and boosted its target price for the shares to 2,000 yen from 1,500 yen.
Sony Corp plunged 8.6% to 1,940 yen after saying yesterday it would post a net loss of 230 billion yen ($2.1 billion) this fiscal year because it was writing down the value of its faltering smartphone business.
Shanghai Composite rises 0.35%
Mainland China share market advanced for second consecutive session, as risk appetite for cyclical stocks propelled after Chinese central bank boosting its stimulus program. The benchmark Shanghai Composite rose 8.03 points, or 0.35%, to finish at 2315.93. The CSI 300 index added 7.33 points, or 0.31%, to 2408.66.
The risk appetite buying was boosted by reports that the People's Bank of China on Tuesday offered a total of 500 billion yuan (US$82 billion) of liquidity to the country's five biggest banks through a three-month standing lending facility, a sign that authorities are stepping up efforts to shore up a faltering economy. The SLF was first introduced in 2013 as a supplement to other monetary policy tools.
There was no official confirmation on the story. Still, it fuelled market hopes Beijing was ready to add more stimulus given recent weakness in housing, imports and industrial output. Morgan Stanley said the liquidity injection was equivalent to a 50-basis-point cut in reverse requirement ratio with three-month duration.
Shares of coal mining companies advanced the most in Shanghai after the Ministry of Land and Resources resumed today the application for exploration in new coal mines as a way to sustain growth in the coal market. The central government has also issued new regulations to raise the standards in the coal quality, which will help restrain import of unqualified coals. The act may help Chinese coal companies secure more market shares. Among coal miners, SDIC Xinji Energy Co was up 6.93% to 4.32 yuan, Henan Dayou Energy Co rose 5.01% to 6.50 yuan, while Shanxi Antai gained 3.82% to 3.53 yuan.
Hang Seng falls 0.85%
Hong Kong share market ended lower on Thursday, 18 September 2014, registering ninth fall in last ten trading sessions, as Fed Chair Yellen indicated that low rate environment is dependent on a number of conditions, an indication that a rate hike pace is gradually moving up. The Hang Seng Index ended 207.69 points, or 0.85%, down at 24168.72. Market turnover was HK$70.19 billion, compared to the yesterday's turnover of HK$76.97 billion.
Shares of property developers were the biggest drag in Hong Kong. China Overseas Land & Investment, the largest mainland developer listed in the city, fell 1.8% to HK$21.35, while China Resources Land dropped 2.8% to HK$17.36.
Macau gaming stocks staged rebound after yesterday's slide. Sands China (01928) added 1.4% to HK$43.1. It was the best performing blue chip. Galaxy Ent (00027) put on 1% to HK$49.85.
Sensex, Nifty hit one-week high
Indian stock market ended sharp higher after the US Federal Reserve renewed its zero-interest pledge. Investors also cheered the strengthening of economic and trade ties with China. The BSE Sensex rose 1.81%, or 480.92 points, to end at 27112.21, marking its second consecutive day of gains. The Nifty rose 1.75%, or 139.25 points, to end at 8114.75, closing above the psychologically important 8100 level.
Prime Minister Narendra Modi won a pledge from visiting Chinese President Xi Jinping to invest $20 billion in India. Experts view this as a new chapter in the India-China relationship. Indian and Chinese companies signed 24 agreements valued at $3.43 billion in sectors including aircraft leasing and financing, telecom, chemicals, wind power components, textiles and seafood.
On Wednesday, Industrial and Commercial Bank of China (ICBC) signed a deal to provide $2.6 billion in financing for IndiGo Airlines to buy and leaseback more than 30 Airbus A320 planes. Also, CSR Corp. won a 300 million yuan ($49 million) contract to provide cars and maintenance for a metro line in Mumbai.
Larsen and Toubro rose 3.7% to Rs.1,574.90 after the company announced that it has won an order from Oman for the construction of Adam air base.
Sun Pharmaceutical Industries added 1.6% to Rs.805.20 after the company announced that it has entered into a licensing agreement with Merck and Co. Inc. for investigational therapeutic antibody candidate, Tildrakizumab, to be used for treating plaque psoriasis.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index advanced 0.46% to 9237.03. South Korea's KOSPI index fell 0.72% to 2047.74. Singapore's Straits Times index rose 0.02% to 3297.29. Indonesia's Jakarta Composite index added 0.38% to 5208.14. Malaysia's KLCI gained 0.08% to 1845.32. New Zealand's NZX50 jumped 0.23% to 5154.18.
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