Asia Pacific share market advanced on Wednesday, 29 October 2014, as risk sentiments boosted up on tracking overnight rally on the Wall Street and on hopes of more favourable policies from the Chinese government. Also providing a boost was anticipation the U.S. Federal Reserve would reinforce its willingness to wait a long while before hiking interest rates at a meeting later on Wednesday.
The US stock market advanced on Tuesday after a strong report on US consumer confidence and another round of mostly solid corporate earnings. The Conference Board said the consumer confidence index leaped to a near seven-year high 94.5 in October from 89.0 in September, a cheery sign for the upcoming holiday shopping season.
Market chatters about the possibility that the People's Bank of China may make further capital injections into the banks. Bank of America Corp said in its latest report that China could inject more liquidity in coming weeks to bolster the start of the link. The central bank injected about 200 billion yuan into some national and regional lenders, according to media reports.
There is also speculation that the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
Among Asian bourses
Nikkei jumps 1.46% on solid earnings, yen depreciation
Japanese share market advanced today, on the back of yen depreciation against greenback and strong earnings results from bellwether companies such as Nomura Holdings and Hitachi Construction Machinery. The Nikkei 225 index rose 224.00 points to 15,553.91, while the Topix index of all first-section issues was up 1.49%, or 18.64 points, at 1,270.64.
Shares of export related companies advanced 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. Sony Corp., which gets 72% of its sales abroad, surged 5.4% to 2001.50 yen. Panasonic Corp., which gets about half its sales outside of Japan, added 1.8% to 1,239 yen. Industrial robot maker Fanuc Corp jumped 1.9% to 18050 yen. Air-conditioner maker Daikin Industries grew 2.3% to 6433 yen. Toyota Motor Corp, the world's biggest automaker, gained 1.5% to 6262 yen. Nissan Motor Co., which gets more than 70% of its revenue abroad, added 1% to 951.80 yen.
Steel makers were especially strong, with JFE Holdings adding 5.2% to 2119 yen on top of the prior session's 2.5% gain after the company raising its full year consolidated operating profit guidance by 15%. JFE rival Nippon Steel & Sumitomo Metal Corp. also added 3.7% to 272.30 yen.
Brokerage stocks were up, with Nomura Holdings adding 4.4% to 636 yen after saying its net profit more than doubled in the second quarter to 52.87 billion yen, well ahead of street expectations. It also announced a share buyback facility worth up to 28 billion yen, or 1.0% of shares outstanding. Fellow brokerage Matsui Securities also added +3.1% to 954 yen after the firm booked strong fiscal first half results, including a second quarter recurring profit of 5.7 billion yen, slightly ahead of street forecasts.
Hitachi Construction Machinery gained 3.9% to 2152 yen after its Y25.4 billion first half operating profit came in above its own Y22.0 billion guidance.
Banks drags down Aussie market
Australian share market closed marginally down, as weakness in financial stocks offsets gains in the mining stocks. The benchmark S&P/ASX 200 Index declined 0.09% to 5447.70 and the broader All Ordinaries Index decreased 0.05% to 5431.10.
Shares of material sector advanced on tracking strength in the base metal prices, with Rio Tinto gaining 1.1% to A$59.65, while resources giant BHP Billiton rose 1.4% to A$33.78. Iron ore miner Fortescue Metals Group jumped 3% at A$3.45. Gold miner Newcrest advanced 2.2% to A$9.91.
Shares of banks and financial companies finished weaker on caution ahead of kicking off banks reporting season from Thursday. Commonwealth Bank of Australia declined 0.8% to A$79.58, ANZ Banking Group 1.4% to A$32.93, Westpac Banking Corp 2.1% to A$34.17, and National Australia Bank 0.6% to A$34.38.
JB Hi-Fi shares surged 9% to A$16.10, after the electronics retailer said in its annual general meeting that it was still on target to meet its guidance of 3.4% sales growth for the full financial year, despite reporting that same-store sales growth had fallen 2.1% compared with last year.
Shanghai Composite rises 1.5% on policy hopes
Mainland China share market advanced for second consecutive session, on expectations of more accommodative monetary policy and mostly better-than-expected corporate earnings. The benchmark Shanghai Composite Index, which tracks both A and B shares, ended higher 1.5%, or 4735.16 points, at 2373.03.
Shares of airline companies advanced on hopes operating margin improvement due to lower fuel costs after crude oil prices continued to fall in the international market. China Eastern Airlines Corp rose to its 9.9% daily limit at 3.45 yuan and China Southern Airlines Co. climbed 4.4% to 3.08 yuan.
Railcar-related firms were up on hopes for more demand after state-run media reports on Tuesday that China is planning to merge two big state-controlled rail-car makers, China CNR Corp and CSR Corp, creating a potentially more effective competitor for major global train projects. While the two Shanghai-listed firms are suspended from trading, their suppliers have risen. Baotou Beifang Chuangye rose 4.7% to 15.54 yuan and Qingdao TGOOD Electric Co. climbed 2.2% to 23 yuan.
Insurers were also higher on strong earnings. Ping An Insurance gained 3.3% after announcing its net income climbed to 10.3 billion yuan from 5.43 billion yuan a year earlier, as banking revenue expanded and a stock-market rally bolstered investment returns. China Life added 2.6% after announcing its profit climbed to 9.15 billion yuan from 7.49 billion yuan.
Hang Seng ends 1.27% stronger
Hong Kong equity market closed higher, registering second session of winning streak, as risk sentiments boosted by tracking gains on the Wall Street overnight and rally on the mainland A-shares today. Meanwhile, shares also rallied after Hong Kong's stock regulator said it has completed preparatory work for a planned trading link with Shanghai's bourse. All the sectors advanced, with shares of resources, financial, industrial and realty companies being major gainers. The Hang Seng Index advanced 1.27%, or 299.51 points, to 23819.87. Turnover increased to HK$79.60billion from HK$67.71 billion on Tuesday.
Macau gaming players were higher, with Galaxy Ent (00027) jumping 6.3% to HK$50.7. Sands China (01928) also soared 5% to HK$46.95. Wynn Macau (01128) rose 4.9% to HK$28.05 despite its 3Q earnings declined 8.2%.
Ping An (02318) gained 2.9% to HK$62.7 after it reported 9-month net rose 35.8%. China Life (02628) share price ended up 2.2% to HK$22.85 after announcing its 9-month net rise 16.3%.
BYD (01211) shot up 5% to HK$53.95 ahead of its earnings report later today. Guangzhou has recently approved subsidy for new energy car of up to 60%. Great Wall Motor (02333) ascended 3.4% to HK$33.15, while GAC Group (02238) fell 3.5% to HK$6.97 as its 9-month net inched up 1.3% only.
Sensex jumps five week high
Indian stock market closed at highest level in five week today, powered by gains in interest rate sensitive stocks, tracking rally in global markets ahead of the outcome of US Federal Reserve's policy meeting. The BSE Sensex settled the day with a gain of 217.35 points, or 0.81 per cent, at 27,098.17 points. The 50-share NSE Nifty ended 62.85 points, or 0.78 per cent, higher at 8,090.45.
Auto stocks rose on buzz of strong sales during the Diwali festive season, with Maruti Suzuki India and Bajaj Auto hitting record high. IT stocks were in demand. Grasim Industries edged higher in volatile trade after announcing Q2 results. Realty stocks rose on reports the Union Cabinet is likely to consider today, 29 October 2014, a proposal to liberalise foreign direct investment in construction sector. Sesa Sterlite rose after announcing Q2 results.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 1.5% to 8903.68. South Korea KOSPI rose 1.84% to 1961.17. Malaysia's KLCI rose 0.76% to 1839.55. New Zealand's NZX50 rose 0.33% to 5355.88. Singapore's Straits Times index grew 0.4% at 3224.03. Indonesia's Jakarta Composite index added 1.45% to 5074.06.
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