The U.S. Federal Reserve will start its two-day policy meeting later in the day. The US Federal Reserve will decide on Thursday whether to lift interest rates which have been close to zero for the last seven years.
Investors around the world are guessing that the Federal Open Market Committee (FOMC) will signal an initial a measured tightening soon, but hold off a September rate hike. Speculation in recent months about when the Fed will lift interest rates has caused uncertainty among stock markets around the world.
Among Asian bourses
Australia market rallies ahead of Fed
The Australian share market recouped all losses of the previous day session, on broad-based gains across all sectors with the major banks, financials and the big miners leading the way on expectations for a delay in the Fed's policy tightening timeline. The benchmark S&P/ASX 200 index rose 80.50 points, or 1.6%, to 5098.90 points. The broader All Ordinaries index ended up 77 points, or 1.53%, at 5123.60.
Banks and financial stocks rebounded on bargain buying after suffering big falls yesterday, with Westpac Bank leading the rally, up 2.9% to A$31.07, meanwhile Australia & New Zealand Banking Group rose 2.7% to A$27.88, National Australia Bank added 2.3% to A$30.51, and Commonwealth Bank jumped 2.6% to A$75.35.
Media stocks extended yesterday's strong gains, profiting from hopes that new Prime Minister Malcolm Turnbull will loosen ownership rules within the sector. Ten jumped 5.6% to A$0.19, Seven gained 3.4% to A$0.765 and Nine added 3.3%, while Fairfax Media was one of the few losers of the day, dropping 1.1% to A$0.86.
Energy stocks bounced, as world crude prices rose modestly overnight as traders eye signs of slowing US oil production that could ease the global oversupply. Santos gained 5.4% to A$4.90. Woodside Petroleum moved up 3% to A$29.10 following a report that its chief executive Peter Coleman will hold talks with the Papua New Guinea government to consider whether to sweeten A$11.6 billion takeover bid that was rejected by Oil Search earlier this week. Oil Search shares rose 2.2% to A$7.43.
Japan stocks up on upbeat offshore lead
The Japanese share market advanced, as risk sentiment boosted by gains in European and U.S. stocks overnight and a weakened yen against the U.S. dollar. Total 18 out of Topix's 33 industry groups ended higher, with Rubber Products, Air Transportation, Transportation Equipment, and Machinery issues led gainers. The Nikkei Stock Average advanced 145.12 points, or 0.81%, to end at 18171.60 points. The broader Topix index jumped 0.71%, or 10.36 points, to 1472.60 at the close in Tokyo.
Shares of export-oriented companies attracted hefty buy orders in Tokyo, with Honda Motor Corp leading advances, up 3.5%, while Toyota Motor, Nissan and Suzuki Motor elevated between 1.6 and 2.7%. Panasonic Corp rose 3.4%. Machinery maker Toyota Industries Corp. rose 6.3%. Auto-parts maker Aisin Seiki Co. gained 5.9%. Construction equipment maker Komatsu added 4.1%.
Shares of Japanese cellphone carriers rebounded after heavy falls Monday and Tuesday on news that Prime Minister Shinzo Abe instructed the communication ministry to consider ways to lower mobile phone fees. Bank of Japan Governor Haruhiko Kuroda also said on Tuesday lower mobile phone fees could allow consumers to spend more on other products and would be a plus for BOJ's goal to achieve 2% inflation. SoftBank Group Corp. rose 1.8% after having lost 7.6% this week through Tuesday. NTT DoCoMo Inc. ended up 0.1% after dropping 13% this week.
Orix Corp climbed 2.5% on the back of a report by the Nikkei business daily that it is acquiring an 85% stake in Sinar Mitra Sepadan Finance.
Sony Corp. gained 1.2% after the electronics maker said it's cutting the Japanese price of its PlayStation 4 to maintain a sales lead through the year-end holiday shopping season. Sony said on Tuesday that the PlayStation 4 in Japan will be priced as low as 34,980 yen ($293) starting Oct. 1 from the current 39,980 yen.
Asahi Group Holdings jumped 4.8% after Mizuho Financial Group Inc. raised its rating on the brewer to buy from neutral, while also boosting its share price target by 12%.
China market rallies 4.9% on speculation of state-led buying
The Mainland China's stock market posted a strong gain, as investors chased for bottom fishing across the board late afternoon on tracking overnight rally on Wall Street overnight and speculation of intervention from Beijing. The Shanghai Composite Index rebounded 4.89%, or 147.09 points, to 3152.26 points, halting a two-day, 6.1% loss. The Shenzhen Composite Index, which tracks stocks on China's second exchange, jumped 6.52%, or 103.10 points, to 1683.56. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, jumped 7.6%, or 128.69 points, to close at 1926.24.
Technology stocks registered a biggest advance among 10 SSE industry groups on bottom fishing after massively correction over the last couple of days. Yonyou Network Technology Co. rose by the 10% daily limit. Dr. Peng Telecom & Media Group Co. jumped 10%.
Citic Securities surged 6.7%, paring its loss over the past three months to 54%, after the securities house confirmed its president was being investigated for insider trading.
China's online retail sales continue to show strong momentum, growing 48.7% during the first half of this year, China e-Business Research Center (CECRC) said yesterday. Online retail sales hit 1.6 trillion yuan (US$251 billion), 11.4% of total retail sales in China. The number of online shoppers rose 19.1% to 417 million. Cross-border e-commerce has become a new driver of retail sales as online retailers connect domestic consumers with an increasing number of overseas brands. Alibaba's Tmall continues to dominate China's online business-to-consumer market, with a 57.7% share. Its rival JD.com comes in second at 25.1%, followed by in distant third by Suning.com at 3.4%.
Hong Kong market up ahead of US Fed decision
Hong Kong stock market ended higher, as investor optimism mounted ahead of a highly anticipated Federal Reserve policy meeting. The Hang Seng Index added 511.43 points, or 2.38%, at 21966.66 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, grew 200.44 points, or 2.07%, to 9904.71 points. Turnover increased to HK$83.3 billion from HK$63.7 billion on Tuesday.
Macau gaming players rebounded. Galaxy Ent (00027) and Sands China (01928) shot up 6% and 5% to HK$23.55 and HK$26.8 respectively. Wynn Macau (01128) also added 4% to HK$10.9 despite Morgan Stanley cut its dividend forecast for Wynn for 2015-17.
Developers were up on bargain buying after yesterday's selloff. SHKP (00016) rose 2% to HK$102.9. CK Property (01113) shot up 4% to HK$59.05.
Tencent (00700) extended yesterday's 2.5% rally, adding 3% to HK$135.4. China Resources (00291) slipped 1.6% to HK$24.5.
Auto dealers and makers were chased by investors. Baoxin Auto (01293) surged 36% to HK$3.51 after China Grand Automotive Services (600297) launched a cash takeover bid. Greatwall Motor (02333) rose 2% to HK$22.9. Geely (00175) jumped 4% to HK$3.44. BYD (01211) leaped 6% to HK$35.6.
Sensex, Nifty reaches highest closing level in more than 2 weeks
Positive lead from global markets aided decent gains for key equity benchmark indices. The barometer index, the S&P Sensex, rose 258.04 points or 1% to settle at 25,963.97. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty gained 70.05 points or 0.89% to settle at 7,899.15. The Sensex and the Nifty, both, attained their highest closing level in more than two weeks.
Bank stocks edged higher on renewed buying. Among private sector banks, IndusInd Bank (up 1.24%), Axis Bank (up 2.52%), ICICI Bank (up 1.28%) and HDFC Bank (up 0.85%) edged higher. Kotak Mahindra Bank (down 0.25%) edged lower. Among PSU banks, Canara Bank (up 2.02%), Punjab National Bank (up 0.59%), Union Bank of India (up 1.03%), Bank of India (up 0.8%), State Bank of India (up 1.35%), Syndicate Bank (up 0.63%) and Bank of Baroda (up 0.69%) gained. Corporation Bank (down 0.63%) and United Bank of India (down 0.48%) edged lower.
Yes Bank surged 3.98% on reports that the bank's advance tax payment rose 30% to Rs 310 crore in Q2 September 2015 over Q2 September 2014. Tuesday, 15 September 2015, was the deadline for the payment of the second installment of the advance tax.
Shares of public sector oil marketing companies fell as global crude oil prices rose and as the rupee edged lower against the dollar. BPCL (down 1.91%), Indian Oil Corporation (down 0.88%) and HPCL (down 3.9%) edged lower. Higher crude oil prices along with a weakness in rupee will increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. A weak rupee will increase cost of crude oil imports. The government has already freed pricing of petrol and diesel.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.9% to 8333.29. South Korea's KOPSI rose 2% to 1975.45. New Zealand's NZX50 rose 0.3% to 5668. Singapore's Straits Times index gained 0.9% at 2868.74. Indonesia's Jakarta Composite index dropped 0.3% to 4332.51.
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