Investors were awaiting eurozone third quarter growth data on Friday as well as a Japanese GDP report next week that could provide the pretext for a snap election to renew the government's mandate for its unprecedented stimulus program.
Concern over a slowing Chinese economy, the second largest in the world, deepened as factory growth in October dipped and investment growth hit a near 13-year low. Industrial output in China rose 7.7% in October from a year earlier, slowing from an 8% on year increase in September, the National Bureau of Statistics (NBS) said on Thursday. Separately NBS data showed fixed-asset investment in nonrural areas rose 15.9% in the January-October period compared with the same period a year earlier, slower than the 16.1% increase recorded in the January-September period. Meanwhile retail sales rose 11.5% in October from a year earlier, slowing slightly from an increase of 11.6% on year in September.
Among Asian bourses
Aussie market rises for the first time in five days
Australian share market closed higher today, registering first gain this week, as gains among the big banks and some materials stocks offset weakness in the energy sector. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose by 0.2% to 5454.30 and 5433.80. Over the week, the benchmark S&P/ASX200 fell 94.8 points or 1.7%. The broader All Ordinaries dipped 88.3 points or 1.6%.
Shares of materials and resources companies rose on bargain buying. Among the major miners, Resources giant BHP Billiton closed steady at A$33.25, while main rival Rio Tinto added 0.6% to A$60.05 and Fortescue Metals jumped %.7 to A$3.05.
Financial stocks were up, with top four lenders leading gain. Among the major banks, National Australia Bank was higher by 0.9% to A$32.69. Commonwealth Bank rose 0.6% to A$81.77. ANZ grew 0.9% to A$32.33. Westpac Banking Corp added 0.2% to A$33.03.
Equities of the energy producers extended losses on tracking 4% slide in crude oil prices overnight. Oil producer Woodside Petroleum lost 1.7% to A$39.44, Santos dropped 1.6% to A$11.98 and Oil Search was 1.9% off at A$8.19. Coal miners were also down, after Glencore said it will shut down its Australian coal operations for three weeks due to an oversupply of the commodity. Whitehaven Coal was down 3.9% to A$1.365 and New Hope was 0.4% lower at A$2.44.
Nikkei hits new seven-year high
Japanese share market advanced to a new seven-year high, boosted by the US dollar rise to a seven-year high against the yen on growing expectations for parliamentary elections and a postponement of next year's planned sales-tax increase. The benchmark Nikkei Stock Average ended up 0.6% at 17,490.83, its highest close since July 26, 2007. For the week, the benchmark index added 3.6%.
All eyes now turn to Japan's third-quarter gross domestic product data due Monday, seen as critical to the government's decision on whether to raise the tax as scheduled. Hopes for a postponement of the tax increase to 10% from 8% next October have been the catalyst for both a stronger dollar and higher stocks for the last few days, as Japan's economy is given a better chance of recovering without the extra burden on consumer demand. To this end, media reports are predicting Prime Minister Shinzo Abe will dissolve the lower house of parliament as early as next week and call for elections by mid-December.
Shares of exporters and other currency-sensitive companies advanced the most in Tokyo after yen depreciated against the greenback. Canon Inc, the world's biggest camera maker, added 1.1% to 3640 yen. Sony Corp., which gets 72% of its sales abroad, rose 2.2% to 2401 yen. Toyota Motor Corp, the world's biggest automaker, added 0.6% to 6969 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, grew 2.6% to 3720 yen. Nissan Motor Co., which gets more than 70% of its revenue abroad, rose 0.9% to 1081 yen. Industrial robot maker Fanuc Corp added 0.2% to 20599 yen, while chip testing equipment maker Advantest Corp rose 0.6% to 1415 yen.
Among earnings related stocks, home-builder Sekisui House added 6.2% after raising its full-year consolidated net profit forecast by 12%. It also lifted its dividend and announced a buyback of its own stock, spurring a flurry of positive brokerage appraisals.
Japan Display share surged 13% after booking a July-September operating loss of Y7.6 billion, in line with revised guidance. It further expanded its group net-loss outlook to Y12.13 billion from a prior Y10 billion forecast.
Sumitomo Mitsui Financial Group fell 1.8% after its first-half consolidated net profit fell 5.2% to Y479.5 billion.
Shanghai Composite drops 0.3%
Mainland China share market closed down in subdued trade, registering second day of consecutive drop, as profit booking continued amid concern recent rallies were excessive and economic slowdown woes, and ahead of start of a Shanghai-Hong Kong exchange link on Monday, 17 November 2014. The Shanghai Composite Index fell 0.3 % to 2,478.82 at the close, trimming this week's gain to 2.5 %.
China's economic slowdown deepened in October as industrial output growth and fixed-asset investment trailed estimates. Industrial output in China rose 7.7% in October from a year earlier, slowing from an 8% on year increase in September, the National Bureau of Statistics (NBS) said on Thursday. Separately NBS data showed fixed-asset investment in nonrural areas rose 15.9% in the January-October period compared with the same period a year earlier, slower than the 16.1% increase recorded in the January-September period. Meanwhile retail sales rose 11.5% in October from a year earlier, slowing slightly from an increase of 11.6% on year in September.
Hang Seng extends gain for fifth day
Hong Kong share market closed higher in narrow trade, registering fifth day of consecutive gain, boosted by continued optimism over the launch of the Hong Kong-Shanghai Stock Connect program on Monday. The Hang Seng Index rose 0.28%, or 67.44 points, to 24087.38. Turnover decreased to HK$72.63 billion from HK$83.93 billion on Thursday.
The Stock Connect program, which will allow individual investors outside of China to buy Shanghai-listed shares for the first time ever, which begin on trading on November 17, expected to allows a net 23.5 billion yuan a day in cross-border purchases. The exchange link marks one of China's biggest steps toward opening up its capital account, boosting global use of the yuan and turning Shanghai into an international financial centre.
Mengniu Dairy rose 2.7% to HK$30.6, becoming a best blue chip performer. Kunlun Energy (00135) dipped 2.4% to HK$9.11, becoming top blue chip loser. Sinopec (00386) fell 1.9% to HK$6.36 after Deutsche Bank lowered its target price.
Shandong Weigao (01066) soared 11.8% to HK$8.8 as Credit Suisse raised its target price to HK$10.3, and upgraded the stock to "outperform".
Nuclear equipment makers declined amid profit taking. Shanghai Electric (02727) dipped 3.5% to HK$4.65. Dongfang Elec (01072) dropped 2%, while Harbin Electric (01133) declined 2.5%.
Sensex drifts higher in volatile trade
A sharp slide in global crude oil prices overnight and data showing continuation of buying of Indian stocks by foreign portfolio investors boosted sentiment as key benchmark indices edged higher on the last trading session of the week. High volatility was witnessed during the latter part of the trading session as benchmark indices regained positive zone after slipping into the red from green for a brief period in mid-afternoon trade. The barometer index, the S&P BSE Sensex, regained the psychological 28,000 level. As per provisional closing, the S&P BSE Sensex was up 82.54 points or 0.3% to 28,023.18. The CNX Nifty was up 32.05 points or 0.38% at 8,389.90, as per provisional closing.
Steel stocks led gains in metal stocks. PSU OMCs edged higher on overnight steep decline in crude oil prices. ONGC advanced ahead of Q2 results. State Bank of India (SBI) edged higher in volatile trade after announcing strong Q2 results. DLF advanced after decent Q2 numbers. Sun Pharmaceutical Industries dropped amid volatility after Q2 results. Cipla dropped after weak Q2 numbers.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.02% to 8982.88. South Korea KOSPI fell 0.8% to 1945.14. New Zealand's NZX50 grew 0.4% to 5484. Singapore's Straits Times index rose 0.32% at 315.67. Indonesia's Jakarta Composite index rose marginal 0.0.02% to 5049.49. Malaysia's KLCI fell 0.11% to 1813.79.
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