Asia Pacific share market closed mostly higher on Wednesday, 24 December 2014, as risk appetite was boosted up on gaining optimism about improving economic growth in the United States after better than expected GDP statistics.
Regional shares took a positive lead from offshore after annualised third quarter US gross domestic product was revised up from 3.9% to 5%, the quickest pace in 11 years and the strongest sign yet that growth has decisively shifted into higher gear. The surprisingly robust U.S. economic growth data bolstering the case for the US Federal Reserve to raise rates off their current record lows sooner. This propelled the Dow Jones Industrial Average above 18, 000 points for the first time in history, while the S&P 500 also hit a fresh record high.
Financial markets in the US, Europe and most of Asia will be closed tomorrow for Christmas Day. Japan and mainland China will be open.
Among Asian bourses
Australia market ends higher in short session
Australian share market closed a shortened trading session ahead of the Christmas holidays slightly higher, as optimism about improving economic growth in the United States shrugged of a fall in the iron price to a five-and-a-half year low. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each added about 0.25%, on Wednesday to 5394.5 points and 5369.5 points, respectively, amid thin trading volumes. Market turnover was relatively thin, with 642.11 million shares changing hands worth of A$1.74 billion.
Shares of energy and mining companies closed higher despite weak commodity prices. Resources giant BHP Billiton gained 0.6% to A$28.97, while main rival Rio Tinto rose 1.4% to A$56.59. Australia's biggest oil producer Woodside Petroleum added 0.5% to A$38.15. Sundance Energy was up 11.2% to A$0.495 after the company provided shareholders with a reassuring update on its business strategy in light of the recent slump in the oil price.
Financial stocks also ended up, with big banks leading rally. Westpac Banking Corporation added 0.5% to A$32.90. ANZ Banking Group rose 0.4% to A$32, and National Australia Bank jumped 1% to A$33.38. Commonwealth Bank of Australia slipped 0.1% to A$84.92.
Telecommunications was the weakest sector as Telstra shed 0.8% to A$5.91 on news that Telstra Corp had paid $697 million for Asia-focused telecommunications provider Pacnet.
Nikkei rises 1.24% on strong US growth data
Japanese share market closed sharp higher, as risk sentiments boosted up by yen depreciation against major currencies and optimism about improving economic growth in the United States. The Nikkei Stock Average rose 219.09 points, or 1.2%, to 17854.23. The Japanese market was closed Tuesday for a national holiday, the emperor's birthday.
Major exporters rose, as the weakening yen boosted up overseas earnings prospects at Japanese exporters when repatriated. Honda Motor Co. added 2.1% to 3,655.5 yen. Shin-Etsu Chemical Co. rose 1.9% to 8,044 yen. Sony climbed 4% to 2,568.5 yen after announcing the limited release of a movie about a fictional plot to kill North Korean leader Kim Jong Un.
Mitsui Chemicals Inc. rose 3.2% to 350 yen after an announcement that the company and its South Korean peer SKC Co. agreed on Monday to integrate their polyurethane materials businesses. A South Korea-based, 50-50 joint venture to be set up in April will aim to generate 240 billion yen annual sales by 2020.
Maruha Nichiro Corp. rose 4.2% to 1,786 yen after the fisheries company doubled its full-year net-income forecast to 10 billion yen.
Tokyo Dome Corp., an operator of a baseball stadium, jumped 8.7% to 535 yen after its rating was raised to Overweight at Mitsubishi UFJ Morgan Stanley Securities Co.
China stocks extend losses on overheating woes
Mainland China share market closed down, extending fall for second consecutive day, as profit taking continued across the board amid concerns about market overheating and speculation the government is taking measures to prevent a bubble. The Shanghai Composite index fell 2% to 2,972.53 at the close, after plunging 3% yesterday.
Selloff triggered amid concern recent gains, which has driven valuations to three-year highs, were excessive. The securities regulator this month cautioned investors on buying shares and started inspecting some brokerages' margin finance businesses. The Shanghai Composite has rallied 40% this year amid speculation the central bank will cut lenders' reserve-ratio requirements to support growth after lowering interest rates for the first time in two years last month.
Shares of financial sector suffered the biggest declines among 10 industry groups, as banks, brokerages and insurance companies dived on reports the China Securities Regulatory Commission has tightened control over illegal trading such as stock manipulation. The largest declines were seen among the brokerages, with Citic Securities and Haitong Securities ending the day both down 9.1%. The large banks also joined in the rout, with China Construction Bank sinking 5.4% and Agricultural Bank of China down 4.5%.
Hang Seng gains 15.65 points in short session
Hong Kong share market closed slightly higher in a shortened trading session ahead of the Christmas holidays, as optimism about improving economic growth in the United States has boosted risk sentiments. The Hang Seng Index ended 15.65 points, or 0.07%, up at 23349.34, off an intra-day high of 23421.10 and low of 23290.42. Turnover amounted to HK$39.7 billion from a half-day turnover of HK$42 billion on Tuesday. The stock market will close on Thursday and Friday for Christmas holidays.
Within HK 50 blue chips, 33 stocks fell and 14 fell, with 3 stocks remaining steady. GALAXY ENT rose 3.8% to HK$43.65, while PING AN dipped 3.1% to HK$73.75, making themselves the biggest blue chip winner and loser.
Shares of Macau gaming players closed higher. Galaxy Ent (00027) jumped 3.8% to HK$43.65. Sands China (01928) shot up 3.1% to HK$38.5.
The MIIT released catalogue of third-batch of new energy vehicles that are entitled to purchase tax exemptions. Models produced by BYD (01211) and BAIC Motor (01958) included. BYD gained 3.5% to HK$29.6. BAIC Motor edged up 0.8% to HK$9.05. Other auto makers were generally higher. Brilliance China (01114) inched up 0.5% to HK$12.3. GAC Group (02238) added 0.4% to HK$7.22. Great Wall Motor (02333) added 0.2% to HK$42.75.
Sensex dips on F&O expiry day
Indian stock market declined for second consecutive session on the December F&O expiry day after data showing the fastest US economic growth in more than a decade bolstered the case for the US Federal Reserve to raise interest rates in the world's biggest economy. Investors are concerned that higher US rates will strengthen the dollar and cause inflows into emerging markets to slow. Apart from a cautious stance by investors on the last day of December derivative contracts expiry, the rupee slipping past 63.50 level against the dollar on robust growth in the US economy also weighed on the sentiment. The 50-share index closed at 8,174, down 92 points or 1.1%. The benchmark BSE Sensex ended at 27,208.61, down 297.85 points or 1.08%.
The Union Cabinet at a meeting today, 24 December 2014, reportedly approved issuance of ordinances to implement coal and insurance reforms as the government was unable to get the Insurance Bill and Coal Bill passed during the winter session of parliament which concluded yesterday, 23 December 2014. The coal ministry today, 24 December 2014, said that it will commence the first batch of e-auction process for 24 Schedule II coal mines from tomorrow, 25 December 2014.
Shares of a number of state-run companies fell. Shares of public sector oil marketing companies fell on weakening rupee. Shares of companies operating insurance business edged higher on reports that the Union Cabinet at a meeting today, 24 December 2014, approved the ordinances to raise the overseas investment limit in insurance.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.97% to 9186.18. South Korea KOSPI was up 0.4% to 1946.61. New Zealand's NZX50 rose 0.1% at 5557.42. Singapore's Straits Times index added 0.4% at 3345.91. Indonesia's Jakarta Composite index grew 0.54% to 5166.98. Malaysia's KLCI added 0.04% to 1749.74.
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