The regional market opened higher after the Dow Jones industrial average, the S&P 500 index and the tech-heavy Nasdaq composite index all gained ground on Tuesday, backed by renewed hopes for U.S. tax reform measures.
In the US, the Dow rose 0.9%, the S&P 500 climbed 1% and the Nasdaq gained 1.4%, posting their best one-day%age gains in over a week on Tuesday, 22 August 2017, on renewed hopes of US tax reform. Reports suggested that President Donald Trump's top aides and congressional leaders have made significant strides in shaping a tax overhaul, moving far beyond the six-paragraph framework pushed out in July that stoked fears about their ability to deliver on one of the GOP's (Republican Party) top priorities. There is broad consensus on some of the best ways to pay for cutting both the individual and corporate tax rates, reports suggested
In the US, House Speaker Paul Ryan told on Monday that tax reform would be easier to pass than the failed healthcare overhaul because Republicans have built a consensus. Separately, Senate Majority Leader Mitch McConnell had said on Monday that there was zero chance that the United States will fail to raise the debt ceiling in September, allaying concerns that the country is poised to default on its debts.
Equity markets have been under pressure this month due to factors that include the attacks in Barcelona, tensions between the US and North Korea and doubts about US President Donald Trump following criticism of his response to a white supremacist rally that turned violent.
However, regional market upside capped following news reports that U.S. President Donald Trump said at a gathering in Arizona on Tuesday that he is prepared to close down the U.S. government to build a wall along the Mexico border. Trump's remark fueled uncertainties over the fate of his administration.
Meanwhile, the annual Jackson Hole Economic Policy Symposium is scheduled for this Friday in Wyoming. Representatives from the central banks of more than 40 countries will attend the annual gathering, hosted by the Federal Reserve Bank of Kansas City.
Among Asian bourses
Australia Stocks down; IAG, Healthscope leads retreat
Australian equity market closed down, weighed down by losses in financial and healthcare stocks as disappointing full year results from Insurance Australia Group and Healthscope dampened sentiment for the sectors. At the close in Sydney, the S&P/ASX 200 declined 0.22% to 5737.20. Falling stocks outnumbered advancing ones on the Sydney Stock Exchange by 588 to 525 and 390 ended unchanged. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 1.15% to 13.503.
Shares of Financial and healthcare sectors accounted for more than half the losses in the benchmark index, weighed down by badly-received results from IAG and Healthscope. Insurance Australia Group, the country's biggest general insurer by market share, tumbled 8.1% to its lowest in almost four months. The insurer underlying insurance margin fell by 2.1%age points to 11.9%, due to higher claim costs in its motor businesses in Australia and New Zealand and losses in commercial classes.
Among healthcare stocks, Healthscope shares fell 15.1% after the company reported a 9.2% drop in full year net profit. Sirtex Medical shed 11.3% after the cancer treatment group posted a full year loss of $26.26 million on the back of writedowns.
The metals and mining stocks were mixed despite a 5% surge in Chinese iron ore futures which drove global mining giant BHP Billiton up more than 1.5% and Rio Tinto up 1.2%.
The energy index climbed, supported by overnight rise in oil prices. Australia's top power and gas retailer Origin Energy gained as much as 2.8% and Australia's biggest independent oil and gas producer Woodside Petroleum climbed more than 1%.
Among company's reporting earnings, Beverage maker Coca-Cola Amatil fell 2.6% after posting a 29% fall in half year profit to $140.1 million on the back of challenging conditions in Australia.
Woolworths shares were up 0.5%, trimming some of its early gains. The stock was up around 13% this year, as investors take heart from the turnaround in supermarkets. The Company is "guardedly optimistic" about the outlook for 2018, when a turnaround in Australian supermarkets is expected to offset another year of massive losses at BIG W. Woolworths has invested more than $1 billion over the past 18 months reducing grocery prices and improving service in stores to regain market share lost to Coles and Aldi in 2015 and 2016. The investment is paying off. Same-store sales grew for the fourth consecutive quarter, soaring 6.4% in the three months ending June - well ahead of forecasts around 5% - after growing 4.3% in the third quarter, adjusted for Easter. The Company expects same-store food sales not to grow at a similar rate in 2018 but momentum remained strong, underpinned by higher customer foot traffic and transactions. Comparable store sales growth for the first eight weeks was in line with that in the June-half, when comps rose 5.4%.
Japan Stocks up on bargain hunting, Wall Street lead
The Japan share market finished higher for the first time in last five sessions, as investors risk sentiments underpinned by tracking global equities rally overnight. Meanwhile, halt in yen appreciation against greenback also supported bargain buying in export-dependent stocks. However, market gain was limited on caution ahead of a key central banker meeting later in the week. The 225-issue Nikkei average rose 50.80 points, or 0.26%, to close at 19,434.64. The Topix index of all first-section issues ended up 3.93 points, or 0.25%, at 1,600.05. Rising issues outnumbered falling ones 1,044 to 842 in the TSE's first section, while 137 issues were unchanged. Volume grew to 1.45 billion shares from 1.31 billion shares on Tuesday.
The Tokyo market opened higher after the Dow Jones industrial average, the S&P 500 index and the tech-heavy Nasdaq composite index all gained ground on Tuesday, backed by renewed hopes for U.S. tax reform measures. Concerns about Trump's tax reform eased after a report that Republicans made some progress on the issue. The market also attracted buying on dips on Wednesday after the Nikkei average shed nearly 370 points in the past five sessions.
Equity markets have been under pressure this month due to factors that include the attacks in Barcelona, tensions between the US and North Korea and doubts about US President Donald Trump following criticism of his response to a white supremacist rally that turned violent. Concerns about Trump's tax reform eased after a report that Republicans made some progress on the issue.
Exporters were higher, as halt in yen appreciation buoyed bargain hunting. Sony shares rose 1.1% and Panasonic was up 0.1%. Toyota rose 0.6% and rival automaker Honda was up 0.2% but Nissan fell 0.2%. Toshiba jumped 4.3% after reports said the struggling conglomerate and its US partner Western Digital were in talks over the sale of Toshiba's flash memory arm.
China Market falls as steelmakers tumble
The Mainland China equity market closed down, weighed down by weakness in shares of iron and steel companies, non-ferrous metal providers and infrastructure firms amid tumbles in futures contracts from steel to coking coal offsetting a rise in banks ahead of earnings reports. The Shanghai Composite Index slid 0.08%, or 2.52 points, to 3,287.70. The CSI 300 Index of large companies edged up 0.1%, or 3.8 points, to 3,756.
Gauge of material declined after Steel rebar futures sank 2.6% in Shanghai and coking coal contracts tumbled 2.9% on the Dalian Commodity Exchange on concern the government will step up measures to cool a surge in industrial metals prices. A statement from the China Iron and Steel Association that it saw little room for further price surges dragged on the sector. Baoshan Iron & steel fell 3.7% to 7.9 yuan. Aluminum Corp of China dropped 4.2% to 7 yuan and Jiangxi Copper lost 3.7% to 18 yuan.
Shares of financials closed higher ahead of earnings reports, with Industrial and Commercial Bank of China (ICBC) gaining 2.6%, while Ping An Insurance Group Co of China rose 0.3%.
Great Wall Motor retreated 1.6% to 13 yuan as the stock resumed trading after being suspended on Tuesday. The company has not negotiated with Fiat Chrysler Automobiles or signed any written document, the automaker said in an exchange filing, clarifying media reports that it had been in talks to buy Fiat's Jeep unit.
Shares in Chinese automaker Anhui Zotye Automobile Co jumped 5.2% following news that it had signed a memorandum of understanding with Ford Motor to build a new electric-vehicle brand. Chongqing Changan Automobile Co, Ford's partner for its Changan Ford passenger vehicle joint venture in China, fell 1%. Ford had previously outlined plans to offer hybrid or fully elctric versions by 2025 of all Ford models built in China by Changan Ford.
Hong Kong Stock market closed for trade
Hong Kong Stock market closed for trade, due to deadly typhoon bringing wind gusts of 130 miles an hour slammed into the area.
Sensex rises for 2nd straight session
Indian Market registered impressive gains on renewed hopes of US tax reform by the Trump administration. The barometer index, the S&P BSE Sensex rose 276.16 points or 0.88% at 31,568.01. The Nifty 50 index advanced 86.95 points or 0.89% at 9,852.50. Gains in banking shares propelled key indices higher.
Realty stocks advanced. DLF rose after the company said that a meeting of the audit committee is scheduled to be held on 25 August 2017 to consider and review the status of the proposed sale of cumulative, compulsory, convertible preference shares (CCPS) held by CCPS holders to a GIC affiliate including the key terms and conditions and make appropriate recommendations to the board.
Software major Infosys gained on buzz the company's co-founder Nandan Nilekani is likely to return as the head of the IT bellwether. FMCG major Hindustan Unilever dropped.
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