Asia Pacific share market closed mixed on Thursday, 21 May 2015, on concerns about the pace of the global economic slowdown after downbeat initial gauge of China's factory activity.
An initial gauge of China's factory activity showed further sluggishness in May. The HSBC preliminary manufacturing Purchasing Managers Index rose slightly to 49.1 for May, from a final reading of 48.9 in April, HSBC Holdings PLC said Thursday. The level remains below the 50 threshold that separates expansion from contraction. The May results point to a further deterioration in operating conditions, said Annabel Fiddes, economist at Markit Economics, which compiles the index with HSBC. "Softer client demand, both at home and abroad, along with further job cuts indicate that the sector may find it difficult to expand, at least in the near term," she said.
In the first quarter, China's economic growth was 7% from a year earlier, the worst performance in six years. China's policy makers have been trying an array of measures to keep growth from slipping too quickly, adding fiscal loosening to monetary easing. In the latest moves, it relaxed financing rules for local governments in a bid to boost demand for credit, while three interest-rate cuts since November aim to lower borrowing costs.
The market participants ignored news about the possibility of a delay in U.S. interest rate hikes. The closely-watched Fed meeting minutes showed many officials saw it as premature to hike interest rates in June. Minutes from the latest Federal Reserve meeting bolstered expectations that U.S. interest rates will remain near zero until later in 2015. The U.S. economy has shown signs of strength - the latest being this week's upbeat housing data - but overall recovery has not been as robust as expected. The economy grew by a modest 0.2% in the first quarter.
Among Asian bourses
ASX200 jumps 0.93% on bargain buying
The Australian share market finished higher for the first time in four consecutive sessions, as investors chased for bottom fishing, with shares of healthcare, energy and mining companies leading the rally. The benchmark S&P/ASX 200 Index advanced 52 points, or 0.93%, to 5662.30, while the broader All Ordinaries Index added 49.60 points, or 0.88%, to 5663.60. Market turnover was relatively strong, with 2.08 billion shares changing hands worth of A$5.35 billion.
Shares of healthcare companies gained the most in the Sydney market, led by hearing implant maker Cochlear with gain of 4.8 per cent to A$88.45, while blood products supplier CSL lifted 2.2 per cent to A$91.64. Sonic healthcare added 2.4% to A$19.77 and Resmed Inc jumped 0.7% to A$7.25.
Mining and energy stocks were higher. Investors picked up several oversold stocks after oil and copper stabilised after a sell-off earlier in the week on further economic stimulus measures in China. Among the major mining shares, Rio Tinto jumped 1.6% to A$56.90 and Fortescue metal closed 2.4% up at A$2.12. BHP Billiton added 1.5% to A$29.24, despite news of A$25 million fine in the U.S. for alleged bribery of foreign officials. Among energy shares, with Santos higher by 1.7% to A$7.91 and Oil Search up 1.8% to A$7.39. Origin Energy gained 2% to A$12.58. Woodside Petroleum closed 1.6% higher at A$34.87 as it updated investors on its planned Browse liquefied-natural-gas joint venture.
Building-materials major James Hardie Industries rose 11.6% to A$16.99 after posting an almost tripling in its annual net profit and announcing a special dividend.
Nikkei closes at 15-years high
Japanese share market managed to close at 15 years high, as favourable forex moves, better-than-expected growth for the three months to March, and sign of equity buying by big players such as pension funds and other institutional investors rotating cash into shares from other asset classes. The benchmark Nikkei 225 index advanced 6.31 points, or 0.03%, to finish at 201202.87. The broader Topix index of all first-section shares increased 3.40 points, or 0.21%, up at 1646.80, its highest level since November 2007.
Shares of currency sensitive tech and industrial exporters saw some improvement, with Komatsu adding 1.3%, Fuji Electric Co rising 1%, and Kyocera Corp gaining 0.8%. Panasonic Corp jumped 2.3%, adding to a recent rally as the company increases its solar-cell output, with the shares up 7% for the week to date.
Shares of financial players were on the rise ahead of a monetary-policy decision, with Mitsubishi UFJ Financial Group Inc up 0.9% and Sumitomo Mitsui Financial Group Inc up 1.1%. MS&AD Holdings adding 5.4% after posting a bright current fiscal year earnings forecast which calls for consolidated net profit growth of 15% to 157 billion yen--its best ever mark for profits.
Utilities stocks enjoyed gains as well, with Tokyo Electric Power Co adding 6.7% on reports Tepco was teaming with Thailand's state-owned power utility on liquefied-natural-gas operations.
T&D Holdings also gained 1.2% after announcing that it plans to buy back up to Y30 billion worth of its own shares (3% of the total outstanding) and issue Y30 billion of callable convertible bonds.
Shanghai Composite surges 1.9% on stimulus rumor
Mainland China share market closed higher in volatile trade, on speculation of more policy support from Beijing after weaker-than-expected flash Chinese manufacturing data. The Shanghai Composite Index advanced 83.13 points, or 1.87%, to finish at 4529.42 points. The CSI300 index added 86.06 points, or 1.81%, to 4840.98.
All 10 SSE industry groups ended up, with telecommunication services issue being top gainer, with rise of 4%, followed by healthcare up 3.9%, consumer discretionary up 3.2%, consumer staples up 3.3%, information technology up 2.3%, energy up 2.2%, industrials up 1.9%, materials up 1.8%, utilities up 1.5%, and financials up 0.3%.
Shares of Chinese electric carmaker BYD Co locked at 10% upper circuit, buoyed by the central government's "Made in China 2025" plan to promote global champions.
China Cosco Holdings Co and China Shipping Development Co also advanced 10% daily limit, after the two firms set up a joint venture, China Ore Shipping, in Singapore to buy four ships from Brazil's Vale.
Fiberhome Telecommunication Technologies Co. advanced 2.2% after the government said it will accelerate construction of a broadband network.
Hong Kong stocks fall on downbeat China factory activity data
The Hong Kong stock market closed down, after an initial gauge of China's factory activity showed further sluggishness in May. The benchmark index opened 77 points lower and saw its losses widen to 191 points before recovering most of its lost ground. The Hang Seng Index ended down 61.33 points or 0.22% to 27523.725, off an intra-day high of 27611.72 and day low of 27393.31. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 103.74 points, or 0.73%, to 14132.16 points. Turnover reduced to HK$124.5 billion from HK$137.8 billion on Wednesday.
Shares of Macau gaming players saw buying orders support. Galaxy Ent (00027) soared 4.6% to HK$38.9. Sands China (01928) put on 1.4% to HK$32.055. MGM China (02282) added 1% to HK$14.92.
Chinese telecom carriers fell across the board after Xinhua News Agency said lower telecom charges aims at breaking monopoly. China Unicom (00762) slipped 3.2% to HK$13.54. China Mobile (00941) edged down 0.2% to HK$103.4. China Telecom (00718) fell 3.8% to HK$5.31.
China COSCO (01919) and China Ship Dev (01138) formed a JV for iron ore shipping. Both stocks surged on bullish outlook. China COSCO jumped 8.6% to HK$6.54. China Ship Dev shot up 4.5% to HK$6.52.
Hong Kong's overall consumer prices rose 2.8% in April over the same month a year earlier, which was significantly smaller than the corresponding increase of 4.5% in March, according to the Census and Statistics Department.
Sensex registers small losses
Indian benchmark indices registered small losses as index heavyweights HDFC, ITC and Reliance Industries (RIL) edged lower. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was provisionally off 44.76 points or 0.16% to 27,792.45. The CNX Nifty was down 2.25 points or 0.03% at 8,421, as per provisional closing.
Zee Entertainment Enterprises edged lower in volatile trade after announcing Q4 March 2015 results. Power generation stocks edged lower. FMCG stocks also declined.
Foreign portfolio investors bought shares worth a net Rs 123.49 crore yesterday, 20 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 103.58 crore yesterday, 20 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.1% to 9578.56. South Korea's KOSPI declined 0.8% to 2122.81. New Zealand's NZX50 added 0.2% to 5769.27. Singapore's Straits Times index was marginal higher at 3439.86. Malaysia's KLCI declined 0.8% to 1795. Indonesia's Jakarta Composite index added 0.4% to 5313.21.
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