Asia Pacific share market advanced on Tuesday, 18 October 2016, as sentiments boosted up after comments from the Federal Reserve vice chairman eased concerns about the speed of expected US interest rate hikes. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.8%, extending earlier gains.
Investors are now awaiting China data due this week, including the September quarter gross domestic product on Wednesday, after last week's trade figures raised concerns about the health of the world's second-biggest economy.
U.S. inflation data due later will also be a focus after Federal Reserve Chair Janet Yellen suggested last week the central bank could allow inflation to top its 2% target.
The weaker dollar helped lift oil and metals prices. Oil prices rose on hopes the market may not be as oversupplied as some analysts believe. International benchmark Brent crude was up 0.5% while US West Texas Intermediate (WTI) edged 0.6% higher. Safe-haven gold was firm around the $1250 per ounce level as growing risk aversion encouraged buyers, halting a 6% fall over the last few weeks.
US stocks registered small losses yesterday, 17 October 2016, amid falling oil prices, as investors digested a number of corporate results, key economic data and remarks from a key Federal Reserve official. Fed Vice Chair Stanley Fischer reportedly warned of the dangers of low interest rates, suggesting they could lead to longer and deeper recessions, making the economy more vulnerable.
Among Asian bourses
Japan Market extends gain on yen easing
The Japan share market inclined for second day in row, on the back of rally in the dollar against the yen and speculation mounts the US Federal Reserve will raise rates soon. However, market topside capped amid a wait-and-see mood before the release of key U.S. economic data this week and earnings from Japanese firms that fully kick off next week. Total 25 out of 33 TSE sectoral issues advanced, with Fishery, Agriculture & Forestry, Pulp & Paper, Construction, Real Estate, and Electric Power & Gas issues being major gainers. The 225-issue Nikkei average gained 63.49 points, or 0.38%, to close at 16,963.61. The Topix index of all first-section issues ended up 4.01 points, or 0.3%, at 1,356.57. Rising stocks outnumbered declining ones on the Tokyo Stock Exchange by 1839 to 1038 and 397 ended unchanged. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was down 3.17% to 19.27 a new 1-month low.
Exporters were up on tracking yen depreciation against the dollar, led by automakers, with Toyota closing 0.61% higher at 6,030 yen and Nissan up 0.22% at 996.2 yen. A weaker yen inflates the profitability of Japan's exporters.
Oil and gas developer Inpex rallied 2.35% to 1,045 yen after it said Friday an oil field in Kazakhstan, in which it has a stake, had started shipments.
Fukushima operator Tokyo Electric Power tumbled 7.89% to 385 yen on dimming hopes that reactors at Kashiwazaki-Kariwa, the world's largest nuclear plant, will be restarted. An anti-nuclear candidate won a local weekend election in the central Japan prefecture where the plant is located. Most of Japan's reactors remain offline following the 2011 Fukushima accident caused by the earthquake and tsunami.
Resources leads Australia market rebound
Australian share market closed higher, with materials and resources stocks leading rally on the back of positive commodity prices. At the closing bell, the benchmark S&P/ASX 200 index advanced 22.10 points, or 0.41%, to 5,410.80, while the broader All Ordinaries index was up 21.10 points, or 0.39%, to 5,492. Rising stocks outnumbered declining ones on the Australia Stock Exchange by 546 to 503 and 308 ended unchanged. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 4.11% to 14.002
Shares in mining and materials companies had a good day, thanks to positive commodity prices. BHP Billiton closed 1.1% higher at A$22.64 but Rio Tinto finished flat at A$50.61. Fortescue Metals Group was up 2.4% to A$5.13. Gold miners liked a healthy gold price, with Newcrest up 3% to A$21.40 and Persues up 6.4% to A$0.50.
In companies news front- Tatts Group and Tabcorp shares went into a trading halt amid speculation the two have reignited merger talks. Tatts shares are frozen at A$3.59 and Tabcorp's at A$4.89.
Crown shares managed to close 1.7% higher at A$11.34 after several analysts suggested the stock might be a buy following its 14% slump to A$11.15 on Monday.
China Stocks surge on pleasing new loan data
Mainland China stock market finished the session sharply higher, with sentiment bolstered by better than expected new loan data for September 2016. Most sectors rose, with infrastructure and industrial stocks leading the gains. The CSI300 index of the largest listed companies in Shanghai and Shenzhen added 1.33%, to 3,321.33 points, while the Shanghai Composite Index inclined 1.4% to 3083.88 points.
China's new loans were CNY1.22 trillion in September and total social financing, the broadest measure of new credit, was CNY1.72 trillion, the People's Bank of China said on Tuesday.M2 money supply rose 11.5% y/y during January-September, the central bank said. New loans, gross new loans extended minus loans repaid, were CNY948.7 billion in August and CNY1.05 trillion in September last year. Total social financing (TSF), which includes bank loans, bond and equity issuance, and some shadow finance products such as entrusted loans, was CNY1.47 trillion in August and CNY1.30 trillion in September 2015. Growth in M2 followed an increase of 11.4% y/y in August and a 13.1% gain in September 2015.
Hong Kong Stocks bounce 1.55%
The Hong Kong stock market closed up, with gaming shares retraced much of Monday's losses. The Hang Seng Index inclined 1.55% or 356.85 points to 23,394.39, while the Hang Seng China Enterprises Index jumped 1.88% or 179.12 points to 9,720.20. Turnover increased to HK$59.9 billion from HK$53.6 billion on Monday.
Macau gaming authorities reported GGR amounted to MOP55 billion for 3Q. Galaxy Entertainment (00027) rebounded 2.7% to HK$30.1. Sands China (01928) edged up 0.9% to HK$34.15.
COLI (00688) ended up 4.9% to HK$24.8 after said its 3Q operation profit doubled to HK$8.32 billion. It was the top blue-chip winner today, followed by CR Land (01109), which shot up 3.4% to HK$20.05.
China's new RMB loan came in higher-than-expected at RMB1.22 trillion in September. BOC (03988) added 2.3% to HK$3.5 CCB (00939) climbed 1.8% to HK$5.74.
China's Ministry of Science and Technology has issued guidance, supporting the development of new energy vehicles. BYD (01211) and Great Wall Motor (02333) shot up 4% and 6% to HK$51.95 and HK$8.99.
Sensex provisionally settles above 28,000 level
Banking, IT and metal sector stocks and index heavyweights HDFC, Reliance Industries and ITC led strong gains for key benchmark indices. The barometer index, the S&P BSE Sensex rose 493.18 points or 1.79% at 28,023.15, as per the provisional closing data. The Nifty 50 index rose 155.85 points or 1.83% at 8,676.25, as per the provisional closing data.
IT stocks gained on renewed buying. HCL Technologies (up 3.21%), Oracle Financial Services Software (up 1.75%), Persistent Systems (up 1%), TCS (up 1.82%), Tech Mahindra (up 3.94%) and Wipro (up 2.23%) edged higher.
Index heavyweight and software major Infosys rose 1.62% at Rs 1,038.65 after the company said that its wholly owned product subsidiary EdgeVerve Systems, Emirates NBD, the leading banking group in Middle East and ICICI Bank announced the pilot launch of blockchain network for international remittances and trade finance.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 fell 1.3% to 6973.09. Indonesia's Jakarta Composite index grew 0.4% to 5430.05. Taiwan's Taiex added 0.5% to 9222.58. South Korea's KOSPI index rose 0.6% to 2040.43. Malaysia's KLCI was up 0.8% at 1667.57. Singapore's Straits Times index added 0.5% to 2830.63.
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