Asia Pacific Market: Indices end volatile trade with small gains

Asia Pacific indices managed a small gain in holiday thin trade on Friday, May 17, 2013, poising a second weekly advance, as investors continued focusing of high yielding stocks.

Chinese market leads gain in the region after the media reported that the government may relax control on the financing of property developers, while weakening yen against the greenback and rumor about leasing approval to revive capital spending propelled up Japanese market. Meanwhile share market in Australia, Indonesia, and India also ended higher, while Mew Zealand and Taiwan fell down. Markets in South Korea and Hong Kong are closed for holidays.

Losses for Wall Street overnight had helped dampen sentiment earlier in the day across the region, as the S&P 500 finished down 0.5% after a Federal Reserve official tipped a pullback in the central bank's easing programs could come as soon as this summer. But market across the region recouped after shrugging off weak cues from overseas.

However, gains on the market were limited on fresh concerns that the Federal Reserve might tap the brakes on its efforts to stimulate growth after John Williams, president of the San Francisco Federal Reserve said the central bank could begin winding back monetary stimulus this summer or sometime late this year if further improvement in the labour market.

In Japan's Headline shares on the Japan's market ended higher after recouping losses on the back of yen weakening yen against major currency baskets and sharp gains in leasing companies rallied on a report Prime Minister Shinzo Abe will encourage the practice to revive capital spending. The benchmark the Nikkei Stock Average closed at 15,138.12, gaining 0.67% for the day as well as 3.6% on week. Local shares fell in the morning trade, weighing the benchmark 0.12% lower at 15,019.55, as the overnight losses on Wall Street had investors selling blue chips to lock in gains ahead of the weekend.

In Australia, shares Sydney market ended higher for the first time in three sessions, as strength in mining, energy, and financials shares that helped to overshadow losses elsewhere. The broader All Ordinaries index rose 3% to 5159.80, but wrapping the week 0.6% lower. In today's trade, shares in energy and materials sectors were top gainers, adding 1.1% and 1%, respectively. Meanwhile buying activates also evident in utilities, financials, and tech shares. On downside, shares in consumer staples and gold players suffered massive losses.

In New Zealand, shares in the New Zealand market declined, weighing the NZX 50 Index 38.186 points, or 0.8 percent, down at 4597.84, with Nuplex Industries led decliners after cutting its full-year earnings guidance a second time, while Summerset Group fell down after its biggest shareholder reduced its stake in a discounted sale.

In China, shares of the Shanghai-exchange rose, with the benchmark Shanghai Composite index closed at 2251.8, up 0.8% today, and rose 1.6% on week, amid sign of funds inflow and speculation of government loosening control on refinancing by property developers. Market gains were lead by realty and financing players after the media reported that the government may relax control on the financing of property developers. Shanghai Securities News reported on that Chinese regulators are considering loosening control on refinancing by property developers on condition that funds raised are not invested in property businesses. Six real estate companies have launched refinancing plans since early January and are still waiting for approval by the China Securities Regulatory Commission, the report said.

In India, A bout of volatility was witnessed as key benchmark indices hit fresh intraday low in mid-afternoon trade as weakness in European markets weighed on sentiment. The barometer index, the S&P BSE Sensex, was down 75.53 points or 0.37%, up close to 15 points from the day's low and off about 135 points from the day's high. Index heavyweight and cigarette major ITC dropped in choppy trade after reporting strong Q4 results. Another index heavyweight Reliance Industries (RIL) extended intraday losses. The market breadth, indicating the overall health of the market, was negative. Cement stocks rose after the Competition Appellate Tribunal (COMPAT) today, 17 May 2013, passed an order granting a stay on the penalty imposed by the Competition Commission of India on 11 cement firms on allegations of cartelization.

Powered by Capital Market - Live News