Asia Pacific share market closed mostly higher on Tuesday, 10 January 2017, as encouraging economic data from China kept sentiment upbeat.
China's producer price index jumped past expectations to more than five-year highs in December, suggesting that the world's second-largest economy continued to show signs of stabilisation. On the other hand, the country's consumer inflation remained benign as food prices rose at a more modest pace. The producer price index (PPI) rose 5.5% year-on-year last month, the National Bureau of Statistics (NBS) said on Tuesday, far more than economists' expectations of 4.6%. The growth rate picked up from 3.3% in November and 1.2% in October. The consumer price index (CPI) eased to 2.1 per cent from a year ago in December, slightly below market expectations.
China's economy is estimated to have grown 6.7 percent in 2016, officials said, within the target range of 6.5 percent to 7 percent. Beijing will continue to cut excess capacity in steelmaking and other industries, the officials from the main planning agency told.
U.S. benchmark crude oil steadied, gaining 6 cents to $52.02 a barrel in electronic trading on the New York Stock Exchange. It fell $2.03 on Monday. Brent crude, which is used to price oil sold internationally, gained 4 cents to $54.98.
Among Asian bourses
Australia Market falls on profit booking
Australian share market closed down, weighed down on profit booking after the Australian financial shares hit 20-months peak previous day. Australian financial market jumped as much as 20% since Nov. 9, when Donald Trump's surprise victory triggered a surge in global stocks amid a wave of optimism that global growth will improve. At the closing bell, the benchmark S&P/ASX 200 index declined 46.70 points, or 0.8%, to 5760.70, while the broader All Ordinaries index shed 44.70 points, or 0.76%, to close at 5813.
Financial shares were the worst performers on the index, on a mix of profit-booking and poor sentiment from losses in US financial stocks. Among major banks, Australia & New Zealand Banking Group declined 1.5% to A$31.28, Westpac 0.8% to A$33.70, Commonwealth Bank of Australia 0.5% to A$84.82, and National Australia Bank 1.2% to A$31.67.
Energy shares were bruised by seesawing oil prices, which made a slight recovery from big losses in the previous session. Woodside Petroleum lost 0.1% to A$31.84 while Oil and gas explorers Oil Search shed 1.3% to A$7.35, Origin Energy 0.4% to A$6.75, and Santos 1.7% to A$4.16.
Shares in Primary Health Care dropped 4.8% after Australia's securities regulator said its chief executive, Peter Gregg, had been charged with allegedly falsifying documents during his time as an executive at Leighton Holdings, now Cimic Group. Cimic, which said it hadn't been served with a notice relating to the matter and hasn't been charges with any offense, lost 1.4%. In a statement, Primary Health Care said Mr. Gregg has denied the allegations made by the regulator and the company's board will meet later in the day to review the implications of the proceedings.
Casino operator Crown Resorts declined 1.2% after it said billionaire James Packer would rejoin its board and Chairman Robert Rankin would step down next month, to be replaced by Deputy Chairman John Alexander.
Nikki drop on yen ascent
The Japan share market closed lower, dragged down by profit booking after yen appreciated to upper 115 yen level and concerns about Britain's plans to exit the European Union. The 225-issue Nikkei average fell 152.89 points, or 0.79 percent, to close at 19,301.44. The Topix index of all first-section issues finished down 11.01 points, or 0.71 percent, at 1,542.31. The Tokyo market was closed on Monday for a national holiday.
Export-related stocks declined as the yen rose against the dollar, the British pound and other currencies. The dollar was quoted at 115.58 yen Tuesday morning against 116.07 yen in New York. Honda Motor Co was down 1.1% to 3462 yen while Canon Inc fell 0.54 percent to 3,306 yen. Among individual movers- Toyota Motor Corp was down 1% to 6,861 yen after the US President-elect Donald Trump criticised the Japanese automaker for a previously-announced relocation of Toyota Corolla production to Mexico.
Yamato Holdings plunged 3.3% to 2,420 yen on a news report that the parcel delivery firm's consolidated operating profit is believed to have dropped about 10 percent in the April-December period from a year before.
Mobile phone carrier SoftBank Group gained 0.7% to 8,423 yen after Jack Ma, executive chairman of Chinese e-commerce giant Alibaba Group, pledged to create 1 million jobs in the United States during a meeting with Trump in New York on Monday. SoftBank Group is a major investor of Alibaba.
Japan's top pharmaceuticals maker Takeda Pharmaceutical Co 0.02% up at 4,966 yen after announcing it would acquire US cancer drugmaker Ariad in a deal worth more than $5.0 billion.
China Stocks finish down
Mainland China stock market finished down, as investors took profits after producer price index (PPI) marked the fourth straight month of price rises for goods at the factory gate, raising expectations China's factories could put upward pressure on global prices through the supply chain. The broad market losses were limited as participants continued to seek stocks that were tied to state-owned enterprises (SOEs) mixed-ownership reform theme. The Shanghai Composite Index fell 0.3% to close at 3,161.67. Sector performance was mixed, with gains were lead by transport and material shares, while infrastructure and utilities lagged. The blue-chip CSI300 index, which tracks large companies in Shanghai or Shenzhen, eased 0.17% to 3,358.27. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.24% to 1989.29. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, shed 0.51% to 1,951.68 points.
Department store operators shares shined. Shanghai-listed Hangzhou Jiebai Group, Baida Group, and Shenzhen-traded Chengdu Hongqi Chain were suspended from trading after surging by their 10 per cent daily limit.
On economic news front- China's passenger car sales rose 17.1% y/y in December to 2.76 million units, the China Passenger Car Association said on Tuesday. This compared with a gain of 19.8% y/y in November. For the whole of 2016, passenger car sales were up 15.9% y/y to 23.85 million units. This is much higher than the gain of 8.5% y/y for 2015. Car sales at the end of the year were boosted by the government's announcement that a temporary lower sales tax rate for small-engine vehicles would expire at the end of 2016.
Hong Kong Stocks hit 1-month high
The Hong Kong stock market closed higher for fourth consecutive session, after data showed China's producer prices surged the most in over five years, suggesting a better outlook for industrial profits. Most sectors were up, exception being telecommunications and energy which down as investors took out profits after recent rally.The Hang Seng Index gained 0.8% or 186.16 points to close at 22,744.85, the best settlement level since December 9. The Hang Seng China Enterprises index, or the H-share index, added 0.6% or 61.87 points to 9,664.19. Turnover increased to HK$62.3 billion from HK$51.5 billion on Monday.
Chinese department store operator Intime Retail Group spiked 36% to close at HK$9.54, after Alibaba Group said it would partner with Intime's founder Shen Guojun to privatise the company in a deal worth up to HK$19.8 billion. Its peers Maoye International (00848) and Sun Art Retail (06808) also gained 5% and 3% to HK$0.77 and HK$7.85.
Sunny Optical (02382) gained 5% to HK$40 after reporting handset lenses shipments growth of 106% to 50.11 million units in December. AAC Tech (02018) edged up 0.3% to HK$75.
Property counters were higher on the closing auction session. Both CK Property (01113) and Henderson Land (00012) jumped 2% to HK$50.65 and HK$42.9. SHKP (00016) climbed 1% to HK$104.7.
Among other market movers, index heavyweight Tencent Holdings advanced 1.2% to HK$198, Asian life insurer AIA Group climbed 1.9% to HK$46.2, and Hong Kong Exchanges & Clearing, the city's sole bourse operator, moved up 1% to HK$187.5.
Macau casino shares jumped further after recent gains, with MGM China rising 4.4% to HK$16.08, and SJM Holdings up 3.3% to HK$6.26.
Indian market ends with small gain
Indian benchmark indices registered modest gains. The barometer index, the S&P BSE Sensex, rose 173.01 points or 0.65% to settle at 26,899.56. The Nifty 50 index rose 52.55 points or 0.64% to settle at 8,288.60.
Adani Ports and Special Economic Zone (APSEZ) rose 3.25% to Rs 294.05 after the company said that pursuant to the powers delegated to the Finance Committee by the board of directors of the company, the Finance Committee has reviewed and approved the preliminary offering circular in relation to the proposed issuance of foreign currency denominated bonds (notes) in US dollars by the company. The issuance of notes offering may follow, subject to market conditions.
Bharat Heavy Electricals (Bhel) rose 0.43% to Rs 128.20 after the company said that it has bagged an order from PowerGrid Corporation of India for the augmentation of three extra voltage substations in Karnataka on turnkey basis amounting to Rs 96 crore. The announcement was made during market hours today, 10 January 2017.
HDFC fell 0.47% to Rs 1,216.45. The company announced that it will issue senior, secured, redeemable, non convertible debentures amounting to Rs 843 crore on private placement basis.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 was up 0.35% to 7037.58. South Korea's KOSPI index fell 0.2% to 2045.12.Taiwan's Taiex index gained 0.1% to 9349.64. Malaysia's KLCI added 0.3% to 1672.05. Indonesia's Jakarta Composite index fell 0.1% to 5309.92. Singapore's Straits Times index added 0.8% to 3006.02.
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