European and US stocks markets were closed Thursday for the Christmas holiday, while financial markets in Hong Kong and Australia were among those in Asia closed on Friday.
Trading in US index futures indicated that the Dow could gain 32 points at the opening bell today, 26 December 2014. US stocks closed flat in a short session on Wednesday, 24 December 2014, as investors found few reasons to push major indexes to their sixth straight day of gains. The S&P 500 erased earlier gains and closed down less than a point at 2,081.88 in the Christmas holiday-shortened session, ending its five-day winning streak. But the Dow Jones Industrial Average eked out a 6-point gain to 18,030.21, closing at a record level.
Among Asian bourses
Nikkei closes 10.21 points up
Japanese share market closed marginal higher in quiet trading, with the reduced number of market participants amid the holiday season avoiding any major moves. Investors largely played down slew of November's Japanese economic indicators released earlier in the day such as inflation, industrial output and labor data. The Nikkei Stock Average rose 10.21 points, or 0.06%, to 17818.96.
Earlier Friday, internal affairs ministry data showed industrial production fell 0.6% in November from the previous month. Separate data showed rate of increase in Japan's core consumer price index--adjusted for volatile fresh-food prices and the impact of a national sales tax increase in April--fell to 0.7% in November from a 0.9% rise the previous month. The internal affairs ministry also said household spending fell 2.5% year-on-year in November while the jobless rate stayed unchanged at 3.5%. The government data showed Japanese retail sales rose 0.4% in November from a year earlier.
Sumitomo Mitsui Financial Group Inc., the country's second-largest lender by market value, rose 0.7% to 4,435.5 yen after agreeing to buy Citigroup Inc.'s Japanese consumer-banking business to expand services for wealthy individuals in the country. The purchase includes 2.4 trillion yen in deposits of about 740,000 Citigroup customers, around 1,600 employees and 32 branches.
Zojirushi Corp., which makes rice cookers and thermos flasks, tumbled 5.4% to 732 yen after forecasting a 31% drop in profit. The company said net income for the year will drop to 2.6 billion yen from 3.7 billion yen, while operating profit will slump 34% to 3.9 billion yen.
Among ex-dividend stocks, Asahi Group Holdings lost 0.9% to 3,807.5 yen while Japan Tobacco Inc slid 0.3% to 3,373 yen. Trend Micro Inc dropped 4.8% to 3,475 yen
China stocks surge on calming liquidity woes, policy speculation
Mainland China share market closed sharp higher in volatile trading, extending gain for second consecutive day, amidst calming liquidity squeeze concerns and speculation the government will take more measures to bolster the economy. The Shanghai Composite rose 2.77% to 3157.60, adding to yesterday's 3.4% gain. For the week, the benchmark index was up 1.6%.
Investors concern about market liquidity calmed as money-market rates dropped after cash locked up to buy new shares returned to the banking system. The seven-day repurchase rate, a gauge of interbank funding availability, declined 151 basis points to 3.70% in Shanghai. Funding needs due to 10 IPOs that started last week drove the repo rate to an 11-month high of 6.18% on Dec. 22.
The Shanghai Composite has rallied 49% 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 gained the most among 10 industry groups, as banks, brokerages, developers, and insurance companies all rallied. Industrial & Commercial Bank of China Ltd. added 3.6%. Bank of Communications rose by 4%. Ping An Insurance (Group) Inc. soared 6.9%. China Vanke Co. surged 5%. Citic Securities hit the daily upper 10% limit.
Industrials were another industry group to make a substantial jump, buoyed by Wednesday's announcement from the State Council that called for more financial support to the country's equipment design and manufacturing sectors. China Railway Construction Corporation was 8.9% higher and Sany Heavy Industry Co. ended the day with a 2.4% gain.
Sensex trims losses
Indian stock market pared losses in mid-afternoon trade. The barometer index, the S&P BSE Sensex bounced back after hitting fresh intraday low. The Sensex was currently up 1.39 points or 0.01% at 27,210. The market breadth indicating the overall health of the market was negative. Realty shares were mostly higher. Shares of public sector banks were in demand.
At 14:19 IST, the S&P BSE Sensex was up 1.39 points or 0.01% at 27,210. The index fell 117.23 points at the day's low of 27,091.38 in mid-afternoon trade, its lowest level since 18 December 2014. The index jumped 162.02 points at the day's high of 27,370.63 at the onset of trading session. The CNX Nifty was up 9.85 points or 0.12% at 8,183.95. The index hit a low of 8,147.95 in intraday trade, its lowest level since 18 December 2014. The index hit a high of 8,234.55 in intraday trade.
Realty shares were mostly higher. DLF (up 2.47%), Anant Raj (up 1.69%), Parsvnath Developers (up 1.54%), Indiabulls Real Estate (up 1.18%), Prestige Estates (up 0.97%), Unitech (up 0.93%), Peninsula Land (up 0.46%), Godrej Properties (up 0.20%) and Phoenix Mills (up 0.04%), edged higher. However, Oberoi Realty (down 3.65%), Housing Development and Infrastructure (HDIL) (down 0.66%), Sunteck Realty (down 0.26%) and Sobha (down 0.10%), edged lower.
D B Realty jumped 9.86%. The company said during market hours that DB Woods, Goregaon (East), a development comprising 3 residential towers of 55 stories each and 630 flats, by a subsidiary Company of D B Realty, has received full occupation certificate. The project is the tallest residential development in Mumbai suburbs. The company is proud to report the handover of the development to its customers.
Shares of public sector banks were in demand. Union Bank of India (up 5.13%), Corporation Bank (up 3.86%), Allahabad Bank (up 3.32%), Syndicate Bank (up 2.69%), Bank of India (up 2.54%), Andhra Bank (up 2.37%), Bank of Maharashtra (up 1.81%), Punjab & Sind Bank (up 1.68%), UCO Bank (up 1.58%), United Bank of India (up 1.42%), IDBI Bank (up 1.37%), Punjab National Bank (up 1.21%), Canara Bank (up 1.03%), Dena Bank (up 0.87%), Bank of Baroda (up 0.73%), Central Bank (up 0.45%), Vijaya Bank (up 0.32%) and State Bank of India (up 0.21%), edged higher.
The Ministry of Finance on Wednesday, 24 December 2014, said that Prime Minister Narendra Modi will interact with bankers during two day Bankers Retreat called 'Gyan Sangam' to be held in Pune on 2nd and 3rd January 2015 to prepare a blue print of reform action plan for banking sector. The objectives of this retreat are to create a platform for formal and informal discussions around the issues which are important for banking sector reform.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.6% to 9214.07. South Korea KOSPI was up 0.08% to 1948.16. New Zealand's NZX50 rose 0.1% at 5557.42. Singapore's Straits Times index added 0.23% at 3353.68. Malaysia's KLCI added 0.84% to 1764.44. Share markets in Australia, New Zealand, Indonesia, and Hong Kong closed for national holidays.
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