Asia Pacific share market closed higher in quite trade on Friday, on caution ahead of US jobs data later in the global day that could determine the case for a Federal Reserve interest rate hike later this month or in July.
The US government will unveil the monthly job data for May 2016 later in the global day. The nonfarms payroll data could provide cues on the timing and pace of further interest rates increases from the US Federal Reserve. The job data has implications for the US monetary policy. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015.
Chicago Fed President Charles Evans today, 3 June 2016, said in prepared remarks at the Global Interdependence Center in London that the Federal Reserve should avoid aggressive tightening of US interest rates if it doesn't want to upset the so-far-so-good economic apple cart. Evans said it may be appropriate to have two 25 basis point moves between now and the end of the year.
Among Asian bourses
Australia Market ups 0.8%
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Australian share market advanced for second time this week, as investors chased for bottom fishing on recently beaten down stocks. The stocks fell during midweek amid worries over global issues such as "Brexit", coupled with the release of strong domestic growth data that could spell the end to Reserve Bank rate cuts. At close of trade, the benchmark S&P/ASX 200 index advanced 40 points, or 0.76%, to 5318.90. The broader All Ordinaries grew 38.30 points, or 0.72%, to 5392.50.
Healthcare stocks were up after stock research company CLSA expects a sharp sell-off in the aged care sector recently turns a buying opportunity, and as AiGroup found health services were among the key drivers of a 1.8-point rise in its Performance of Services Index in May, which pushed the measure into expansionary territory. Sonic Healthcare was 1.5% higher to A$21.49 while sector heavyweight CSL had lifted 0.7% to A$117.11.
Shares of materials and resources players advanced, helped by an increase in commodity prices. Among the big miners, BHP Billiton added 1.6% to A$18.53 and Rio Tinto rose 1.5% to A$43.54. Iron ore miner Fortescue was up 2.7% to A$3.08.
Energy shares gained ground after oil prices rallied overnight. Crude oil prices rose to a seven-month high, after a weekly US petroleum report showed a decline in the country's stockpile. Oil explorer Woodside Petroleum grew 0.4% to A$26.86, Santos 3.8% to A$4.41, and Origin 1.3% to A$5.56.
Nikkei gains 0.48%
The Japan share market finished higher, thanks to bargain hunting in heavyweight stocks, spurred by halt in yen appreciation against greenback and gains on the Wall Street overnight. But gains were limited as investors retreated to the sidelines ahead of the U.S. government's release of employment data for May later in the global day, The 225-issue Nikkei average climbed 79.68 points, or 0.48%, to 16,642.23, after falling 393.18 points on Thursday. The Topix index rose 5.42 points, or 0.41%, to close at 1,337.23, after falling 30.26 points the previous day.
Fast Retailing jumped 6.9%, as sales at its Uniqlo shops in Japan in May shot up 5.9% from a year earlier on a same-store basis.
Itoham Yonekyu Holdings shop up 8.20%, after SMBC Nikko Securities revised up its price target for the food producer.
Takata Corp. closed 1.6% higher after reports Bain Capital and PAG Asia Capital are evaluating bids for the scandal-ridden air-bag maker, joining KKR & Co. among those interested in an offer.
Capcom Co. added 3.7%. Bank of America Corp.'s Merrill Lynch unit reiterated its buy rating on the stock, citing the release of a new game and higher profits from existing titles.
Fujitsu slumped 3.4% after the Nikkei newspaper reported the computer maker's costs to overhaul its data centers could be more than double what was initially estimated.
China Stocks closed up
Mainland China stock market advanced, as investors continued hunting for blue chip stocks amid expectations that global index provider MSCI might include mainland Chinese stocks into its widely tracked benchmarks. Total 8 out of 10 SSE sectoral indices advanced with consumer staples, healthcare, IT, telecom, and consumer discretionary issues being major gainers. The CSI300 index of the largest listed companies in Shanghai and Shenzhen inclined 0.7%, to 3189.33, while the Shanghai Composite Index grew 0.46%, to 2938.68 points, taking its weekly gain to 4.2%.
Shares of distilleries companies advanced the most in Mainland market. Liquor maker Kweichow Moutai Co. jumped 6% to a record high and Jiangsu Yanghe Brewery Joint-Stock Co. added 4.4%.
Hong Kong Market ends higher
The Hong Kong stock market finished with gains in quite trade, as investors waited for the latest US jobs data, due out later, to see if the Federal Reserve is likely to raise US interest rates soon. The benchmark Hang Seng Index advanced 88.02 points, or 0.42%, to 20947.24 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, rose 53.43 points, or 0.61%, to 8809.81. Turnover increased slightly to HK$60.1 billion from HK$57.9 billion on Thursday.
Dah Sing Financial (DSF)(00440) and Dah Sing Banking Group (DSBG)(02356) entered agreements to sell its HK and Macau life insurance businesses and become exclusive insurance agent for distribution of life-insurance products at HK$10.6 billion. DSF shot up 3.3% to HK$51.8 as it plans a special dividend after the transaction. DSBG added 1.9% to HK$13.6.
HSBC (00005) and Tencent (00700) will see their respective weightings on the HSI rise and lower to 10% next Monday. HSBC edged up 0.6% to HK$50.8. Tencent also inched up 0.4% to HK$170.8.
OPEC failed to reach an agreement on output, but Brent crude futures stood at US$50/b for the first time in seven months. CNOOC (00883) nudged up 0.3% to HK$883. PetroChina (00857) slipped 0.7% to HK$5.38.
Longyuan Power (00916) soared 7% to HK$6.2 after Macquarie Research lifted its target price and upgraded its rating to "outperform". Huaneng Renewables (00958) advanced 3.2% to HK$2.6.
Indian market settles near the flat line
Initial gains for the two key benchmark indices triggered by the weather office retaining its forecast of above normal rains for the 2016 southwest monsoon season could not be sustained as the outcome of monthly survey showed that the rate of growth in India's services sector eased last month. The barometer index, the S&P BSE Sensex, lost 0.11 points to settle at 26,843.03. The Nifty 50 index rose 1.85 points or 0.02% to settle at 8,220.80.
FMCG stocks edged higher after the weather office stuck to its previous forecast of good rains for the 2016 southwest monsoon season. Tractor maker Mahindra & Mahindra (M&M) also edged higher on prospects of above normal rains. Aviation stocks edged lower as global crude oil prices rose. Idea Cellular tumbled on reports that US based private equity firm Providence Equity Partners offloaded a large portion of its stake in the market at a discount to ruling market price.
BPCL edged higher after the company's announcement that it has secured shareholders' approval for increase in limit of total shareholding of all registered foreign institutional investors (FIIs) put together to 49% of the paid-up equity share capital of the company from 24%
Elsewhere in the Asia Pacific region: New Zealand's NZX50 declined 0.27% to 7003.12. South Korea's KOSPI index added 0.04% to 1985.85. Taiwan's Taiex index added 0.37% to 8587.36. Malaysia's KLCI rose 0.36% to 1636.46. Indonesia's Jakarta Composite index added 0.43% to 4853.92. Singapore's Straits Times index rose 0.51% to 2809.23.
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