The sharp rally in the Asian share market came amid easing concerns over the risk of a U.S. default, after the emergence of a proposal offering a temporary reprieve in the debt-ceiling impasse. U.S. Democrats and Republicans were moving toward an agreement to extend the nation's borrowing authority before an Oct. 17 deadline even as they remained at odds over terms for ending a partial government shutdown.
The Republicans offered a six-week extension on the debt ceiling deadline, currently set for Oct. 17, to avoid a fiscal disaster at least in the near term. However, the meeting between President Barack Obama and Republicans has failed to yield any results as Obama has not yet accepted the proposal to raise the debt ceiling for six weeks.
It seems that US President will be only interested if the plan of hiking the debt ceiling and re-opening of US government has no strings attached.
International finance chiefs also welcomed signs US lawmakers are working to resolve their debt spat as they warned failure to do so would hurt the world economy. Group of 20 officials meet in Washington today after House Republicans and the White House considered a short-term increase in the US debt limit to buy the time to negotiate a longer- lasting deal that allows America to dodge default.
Among Asian bourses, Australian share market closed sharp higher, with industrials, financials, and materials blue chip players leading the way up. The benchmark S&P/ASX200 jumped 83.8 points to 5230.9, while the broader All Ordinaries gained 82.6 points to 5228.8.
Shares of materials and resources companies were higher in Sydney as base metal prices rose up to 1.4% on the London Metals Exchange on Thursday with aluminium leading the way. Among resources companies, BHP Billiton was up 1.5% to A$35.13 and Rio Tinto added 2.3% gain at A$61.58. Fortescue Metals Group rose 2.5% to A$5.
Shares of banks and financials were up in Sydney, with Australia & New Zealand Banking Group rising 2.4% to A$31.29, Westpac Banking Corp 2.5% to A$32.99, Commonwealth Bank 2.1% to A$72.32 and National Australia Bank 2% to A$34.87.
UGL shares rose 3.1% to A$7.83 after it's engineering chief Russell Waugh stepped down because of his alleged connection to former employer Leighton Holdings' bribery scandal.
In Japan, shares in Japanese market rallied today, with the Nikkei Stock Average rising 1.48% and the broader Topix index gaining 1.6%, on the back of yen depreciation against the dollar and on signs of progress with budget and debt talks in Washington.
Japanese yen depreciated to mid-98 range against the greenback on news of debt limit talks. The greenback last changed hands at 98.48 yen, compared with 98.17 yen late Thursday in New York.
Shares of large-cap exporters rallied sharply in Tokyo on the back of yen depreciation against the US dollar. The weaker yen increased the investors exporters earning when they repatriates it home. Sony Corp added 1.1% to 1919 yen and TDK Corp rose 2.4% to 4030 yen. Nissan Motor Co jumped 1.3% to 1009 yen and Toyota Motor Corp rose 0.9% to 6410 yen.
Fast Retailing Co declined 3.2% to 33450 yen after operator of the Uniqlo clothing chain announced a lower-than expected group net forecast for the year ending August 2014.
The operator of Japanese cheap-chic clothing chain Uniqlo on Thursday said its annual net profit jumped 26.1% to a record as it keeps up a rapid expansion drive. Fast Retailing said it earned 90.38 billion yen in its financial year to August, as sales surged 23.1% to 1.14 trillion yen, topping the trillion-yen mark for the first time. Fast Retailing said it was on track to book a 92 billion yen net profit on sales of 1.33 trillion yen for the year to August 2014. 1
In China, Chinese shares climbed up today, amid easing concerns over the risk of a U.S. default and on prospects for reform of Shanghai's state-owned enterprises. The benchmark Shanghai Composite index rebounded 1.7% to 2228.15, while the CSI 300 Index surged 1.61% to 2468.51.
Shanghai No. 1 Pharmacy Co locked 10% upper circuit at 9.31 yuan on rumour SOE reform would improve profitability after the Shanghai Securities News reported the city may issue a plan to reform SOEs by the end of the month.
Xinjiang Goldwind Science & Technology Co., the biggest wind-turbine maker, jumped by 10% daily limit to 8.57 yuan on prospects for higher shipments.
SAIC Motor gained 3.9% to 14.31 yuan, after the automaker said sales increased 16% last month.
Cosco Shipping added 1.9% to 3.72 yuan. The company said yesterday shipping volumes rose 16% from a year earlier in September.
Bank of Ningbo Co. jumped 2.6% to 9.14 yuan after the lender won approval from the China Securities Regulatory Commission to set up a fund management firm.
In Hong Kong, HK shares closed sharply higher, boosted by the strong rally of the Dow overnight as Republicans backed down and agreed to raise debt limit for six weeks. The benchmark Hang Seng Index advanced 267.02 points, or 1.16%, to 23218.32.
Among the 50 HK blue chips, 45 rose and 3 fell, with 2 stocks remaining steady. Tencent Holdings gained 2.3% to HK$419, while Cosco Pacific slipped 1% to HK$11.68, making themselves the top blue-chip winner and loser. Market heavyweights were higher. China Mobile climbed up 1.3% to HK$85.10. HSBC Holdings rose 1.3% to HK$84.50.
China State Construction International shares rallied 3.3% to HK$12.50 after the company said it recorded a new contract value of HK$40.62 billion in the first nine months of 2013, representing a year-on-year growth of 20.64% and a 94.47% completion of revised-up full year target of 2013 of HK$43 billion. As on 30 September 2013, the on-hand contract value amounted to about HK$126.33 billion, among which the backlog was around HK$79.09 billion, up 24.62% year-on-year, which meets the Group's works in next three years.
Geely Automobile shares fell 3.5% to HK$4.11 after announcing weaker than expected auto sales data. The auto maker said its total sales volume of the Group for September was 43,027 units, similar to the level achieved in the same period last year, but up around 22% from a month earlier. The total sales volume in the first nine months of 2013 was 375,810 units, up 16% from the same period last year and achieving 67% of the full year sales volume target of 560,000 units in 2013.
TCL Communication Technology shares surged 12.3% to HK$6.21 after forecasting to post a profit for the three months ended 30 September 2013 as compared to a loss for the corresponding period in 2012. In addition, it expects a significant increase in its operating profit and net profit for the third quarter of 2013.
TCL Multimedia Technology dropped 4% to HK$3.63 after the company expected to record a loss for the three months ended 30 September 2013 as compared to a profit for the corresponding period in 2012.
In India, Indian benchmark indices strengthened in mid-afternoon trade after trimming intraday gains in afternoon trade. The barometer index, the S&P BSE Sensex, was up 240.69 points or 1.19%, up 145.54 points from the day's low and off 46.09 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by upward revision in revenue guidance from IT major Infosys, gains in rupee against the dollar, and provisional data showing that foreign funds remained net buyers of Indian stocks on Thursday, 10 October 2013. Gains in European and Asian stocks triggered by hopes that US lawmakers will lift the debt limit and avoid a default aided upmove on the domestic bourses.
IT major Infosys edged higher in volatile trade after the company raised its revenue growth guidance for the year ending 31 March 2014 (FY 2014) at the time of announcement of Q2 September 2013 results before trading hours. The stock was up 4.48% to Rs 3,264.15. The stock surged as much as 7.55% at the day's high of Rs 3,360 at the onset of the trading session, also its 52-week high. The stock rose as much as 1.07% at the day's low of Rs 3,157.65 in early trade. On a consolidated basis, Infosys' net profit rose 1.4% to Rs 2407 crore on 15.1% increase in total revenues to Rs 12965 crore in Q2 September 2013 over Q1 June 2013. Infosys has made a provision of Rs 219 crore towards visa related expenses in Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS).
Infosys said it now expects revenue in dollar terms to grow 9% to 10% in the year ending 31 March 2014 (FY 2014). This is an upward revision from its guidance of 6% to 10% which the company had given at the time of announcing Q1 June 2013 results in July this year. Thanks to depreciation of rupee against the dollar, Infosys has also raised its revenue growth guidance in rupee terms for FY 2014. The company now expects 21% to 22% growth in revenue in FY 2014, which is higher than its earlier forecast 13% to 17% growth.
Elsewhere in the region, New Zealand's NZX 50 Index fell 1.36%. Indonesia's Jakarta Composite Index gained 0.66%. South Korea's KOSPI rose 0.22%. Malaysia's KLSE Composite shed 0.61%. Singapore's Straits Times index was down 1.77%.Taiwan's Taiex lost 0.34%.
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