The regional markets benefited mainly from gain on the Wall Street overnight after positive U.S. economic figures. US home construction rebounded in July, rising to an eight-month high and offering hope that housing has regained momentum after two months of declines. Construction increased 15.7% in July to a seasonally adjusted annual rate of 1.09 million homes, official figures showed. Recent data on housing has reassured regional markets that the U.S. growth is on a relatively solid track.
However, gain on the upside was limited on caution ahead of the BoE and FOMC minutes later today. Later in the day investors will be looking to the Federal Reserve's minutes from the July 29-30 policy meeting. The Fed minutes will be scanned for any clues on when policymakers plan to raise US interest rates, with a set of mixed data in recent months keeping traders guessing about the timing of the tightening cycle.
Traders are also awaiting for annual Jackson Hole, Wyoming, summit in the US, which brings together business heads and central bankers from around the world. Federal Reserve chair Janet Yellen and her European counterpart Mario Draghi are both scheduled to address delegates late in the week.
Among Asian bourses
Nikkei rises for eighth straight session on weak yen, US data
Japanese share market closed marginally higher as profit-taking erased most of the market's early gains, which were buoyed by an array of supportive factors, including solid gains for Wall Street overnight, a significantly weaker yen, and data out ahead of the open showing a rebound for Japanese exports in July. The benchmark Nikkei 225 index advanced 4.66 points to close at 15454.45, extending gain for eighth straight session.
Japan's trade deficit rose in July from the month before to a wider than expected 964 billion yen ($9.4 billion), though exports were higher for the first time in three months, the Ministry of Finance said on Wednesday. Exports rose 3.9% from a year earlier to 6.19 trillion yen ($60.2 billion), slightly outpacing a 2.3% increase in imports, to 7.15 trillion yen ($69.5 billion). Japan recorded an 822 billion yen deficit in June.
Telecoms saw improvement, with Nippon Telegraph & Telephone Corp rising 2% to 6908 yen and KDDI Corp rallying 0.6% to 5971 yen after the Nikkei Asian Review reported the wireless provider would earn a record-high overseas operating profit this fiscal year.
Consumer lenders and insurers fell on profit booking. Aiful lost 3.6% to 427 yen and Anicom sank 5.3% to 1,157 yen.
Chugai Pharmaceutical Co dropped 1.7% to 3680 yen after rallying the past two sessions on reports that its top shareholder, Roche Holding AG, would buy the rest of the company.
Hitachi Metals advanced 3.2% to 1,790 yen after announcing plans to pay $1.3 billion for Waupaca Foundry, the largest-ever purchase for the Japanese specialty metals producer. The acquisition from KPS Capital Partners LP will be financed with cash and debt, according to a statement yesterday.
Cosmo Oil fell 2.5% to 194 yen after its rating was cut to neutral from outperform by Mitsubishi UFJ Morgan Stanley. The 12-month price target is 120 yen per share.
Australia stocks rise for the fifth day in a row
Australian share market closed higher for fifth consecutive session on the back of positive cues from offshore markets overnight after upbeat U.S. economic figures. However, plunge in heavyweight BHP Billiton shares capped the overall gain. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose by 0.2% to 5634.60 points and 5629.20 points, respectively.
The consumer goods and retailers stocks advanced, with Wesfarmers improving 3.8% to A$45.66 after a solid earnings gain and announcement of plans to return more than A$1 billion to its shareholders via dividends and a one-time distribution. Woolworths shares jumped 0.3% to A$36.94, Harvey Norman rose 0.6% to A$3.22 and Myer added 0.9% to A$2.36.
The financial stocks rose, with top lenders being the biggest winner. Commonwealth Bank of Australia added 0.4% to A$80.30, ANZ Banking Group 1.4% to A$33.27, National Australia Bank 0.9% to A$34.24, and Westpac Bank 0.3% to A$34.88. QBE Insurance Group rose 5.6% to A$11.31 after the insurer completed a capital raising that had helped weigh on the shares.
Materials and resources stocks closed down, with resources giant BHP Billiton falling3.9% to A$38.13 after its earnings missed expectations and an anticipated stock buyback failed to materialize. The mining major also announced plans to spin off a host of assets. Rival Rio Tinto lost 0.6% to A$65.98. Fortescue Metals sank 1.5% to A$4.55.
Shanghai Composite falls 0.23% from 8-month high
Mainland China share market closed down amid profit booking after the benchmark index surged to eight-month high yesterday. The benchmark Shanghai Composite closed 5.12 points down at 2240.21 after raising to intraday peak of 2248.94. Turnover decreased to 139.63 billion yuan from yesterday's 155.44 billion yuan.
The Chinese market has risen about 13% from this year's low as monetary easing, accelerated government spending and gains in manufacturing spur speculation the nation will meet its 7.5% economic expansion target.
Shares of Chinese media companies declined on profit taking after sharp rally on Tuesday because of a government plan to promote new media. The central government approved on Monday a plan to promote new media, giving a fillip to the sector. The government's plan to transform the traditional media such as newspapers, TV and broadcast, and publishing is expected to provide opportunities for investors.
Shanghai Xinhua Media Co ended 1.3% down at 9.89 yuan. People.cn Co, the online unit of the Communist Party's newspaper, declined 2.5% to 40.14 yuan. Shanghai Xinhua Media Co dropped 1.3% to 9.89 yuan. Jiang Daily Media Group Co. all jumped by the 10% daily limit. Northern United Publishing & Media gained by 5.2% to 9.45 yuan and Jiang Daily Media Group Co rose 4.9% to 17.46 yuan.
Bank of China shares rose 0.4% to 2.70 yuan in spite of the China's fourth-biggest lender reported slower profit growth in the first half as it doubled provisions for bad loans during the period. Net profit grew a slower 11.1% year on year to 89.7 billion yuan (US$14.6 billion) in the first six months, compared with 12.9% in the same period of last year, the lender said in a filing to the Shanghai Stock Exchange. The bank's net interest income added 14% from a year earlier to 156.7 billion yuan in the six months, while non-interest income rose 13% to 78.2 billion yuan.
Hang Seng rises 0.2%
Hong Kong share market closed higher after swinging between small gains and losses, as risk sentiments lifted up on tracking positive session on Wall Street overnight. But, gain was marginal as profit-taking emerged after the benchmark index surged to highest level since May 2008 on Tuesday. The Hang Seng Index climbed 0.15%, or 36.81 points, to 25159.76, a highest level since 21 May 2008. Market turnover stood at HK$70.36 billion, down from HK$72.37 billion on Tuesday.
Maanshan Iron & Steel shares declined 2.7% to HK$1.81 after the steelmaker said its net loss for the six months ended 30 June 2014 widened to Rmb730 million from Rmb333 million for the same period in 2013. Operating revenue amounted to Rmb28.86 billion, a decrease of 21.89% from a year earlier.
Ping An Insurance shares fell 0.7% to HK$63.35. The insurer said its net profit rose 19.3% year-on-year to Rmb21,362 million for the six months ended 30 June 2014. Total income amounted to Rmb266,345 million, an increase of 23.4% from a year earlier. In the first half of 2014, written premiums of the life insurance business reached Rmb148,310 million, up 17% over the same period last year. The value of new business in the first half of the year grew 16.7% over the same period last year.
China Mobile (00941) dipped 1.2% to HK$94.70 on reports that the company started a massive job cut involving 300,000 people. The company yesterday denied the reports.
Sensex slips in afternoon trade
Indian stock market erased initial gains and was trading down around afternoon due to profit-taking by funds and retail investors amid weak Asian cues. At 13.30 p.m., the 30-share BSE index Sensex was trading at 26335.70, down 84.9 points or 0.3%. The 50-share NSE index Nifty was trading at 7875.70, down 22 points or 0.3%. There was profit-booking in FMCG, auto, realty, banks, capital goods and consumer durable sector stocks that made the 30-share index fall.
Elsewhere in the Asia Pacific region-- South Korea's KOSPI index jumped 0.1% to 2072.78. Taiwan's Taiex index gained 0.5% to 9288.05. Malaysia's KLCI rose 0.07% to 1873.45. New Zealand's NZX50 added 0.5% to 5140.34. Singapore's Straits Times index rose 0.3% to 3326.18. Indonesia's Jakarta Composite index rose 0.34% to 5182.50.
Powered by Capital Market - Live News
