Asia Pacific share market advanced on Monday, 16 February 2015, as appetite for risk assets boosted up on tracking gains on the offshore market on Friday. But, gains on the upside were limited on caution ahead of a meeting between Greece and its main European creditors.
Asian market commenced trading with firm footing, tracking rally in the Wall Street to a record high on Friday. The Standard & Poor's 500 index jumped by 0.4% to 2,096.99, passing the previous record close set Dec. 29. The Dow Jones industrial average climbed 0.3% to 18,019.35, just 35 points short of its all-time high. The Nasdaq composite gained 0.8% to 4,893.84.
Eurozone finance ministers meet on Monday to consider Greece's proposal for short-term "bridge financing" without the onerous terms previously imposed on the country until a longer-term solution to Greece's crushing debt is found.
Global markets are hoping a deal can be reached before the end of the month, when Greece's bailout is due to expire. Investors hope a deal will be reached to avoid Greece's exit from the euro. Failure to reach a compromise may raise prospects of a debt default on its giant debts and likely mean it would crash out of the eurozone.
Among Asian bourses
Australia stocks rise to fresh seven-year high
The Australian share market closed at fresh seven-year high, as gains in the information technology, energy and materials and resources stocks were more than offset losses in realty, utilities, and consumer goods stocks. The S&P/ASX200 closed 11.20 points, or 0.19%, lower at 5888.70, while the All Ordinaries grew 14 points, or 0.24%, to 5849.50.
Financial sector ended 0.1% higher on the back of gains across the big four banks. Commonwealth Bank of Australia lifted 0.3% to a record A$93.47 on the last day investors could buy the shares and be entitled to the bumper A$1.98 interim dividend. Westpac Banking Corporation and ANZ Banking Group also added more than 0.3% to close at record highs of A$37.65 and A$35.87 respectively. National Australia Bank edged up 0.1% to A$37.50. Regional lender Bendigo and Adelaide Bank dropped 4.5% to A$13.74 on lower-than-expected cash profits. QBE Insurance was a big winner up 3.4% to A$11.98 after striking a deal to sell one of its divisions.
Materials and resources stocks advanced on tracking gain in the metal prices. The spot price for iron ore, delivered in China, lifted 1.5% over the weekend to $63.19 a tonne. Fortescue Metals Group was up 3.5% to A$2.68, BC Iron rose 0.9% to A$0.59, and Atlas Iron gained 7.7% to A$0.21. Resources giant BHP Billiton rose 1.2% to A$32.56, while main rival Rio Tinto fell 0.4% to A$63.55.
Top coal hauler Aurizon Holdings' shares slipped 2.6% to A$4.87 after the company warned it would be tough to sign off on plans to build new rail lines if coal and iron ore prices remained weak.
Goodman Fielder rose 3.9% to A$0.67 after Chinese regulators reportedly approved the pending buyout of the food producer.
Nikkei hits 8-year high on GDP data
Japanese shares rallied to an eight-year high, as demand for risk assets underpinned after official data confirmed that Japan's economy pulled out of recession in the last quarter of last year. Shares also advanced amid building hopes that continuing talks in Athens over the Greek debt crisis would result in a deal. The Nikkei Stock Average rose 91.41 points, or 0.5%, to 18004.77, above the 18000 threshold for the first time since July 2007. The broader Topix also ended 0.7 point stronger at 1459.43.
Government data out Monday morning showed Japan managing to pull out of recession in the last quarter of last year. The first read of Japan's gross domestic product for the October-December period indicated growth at a 2.2% annualized rate, or 0.6% on a quarterly basis.
Shares of banks and other financial stocks were leading the index higher. Mitsubishi UFJ Financial Group Inc. rose 3.1% to 729 yen. Nomura Holdings Inc rose 2.4% to 679 yen, Shinsei Bank jumped 2.2% to 229 yen and Credit Saison Co gained 3.5% to 2278 yen. Sumitomo Mitsui Financial Group Inc. gained 3.4% to 4440 yen as its banking unit became the first Japanese lender approved to offer special "free-trade" accounts at China's Shanghai Free-Trade Zone, facilitating cross-border trans-currency banking.
The bounce in oil since Friday helped energy shares, with Showa Shell Sekiyu K.K risng 2.4% to 1128 yen, and Inpex Corp. adding 3% to 1441.50 yen.
Utilities stocks ended lower, with Hokkaido Electric Power Co falling 1.1% to 913 yen, Chubu Electric Power Co down 1.4% to 1430 yen, and Tokyo Electric Power Co slipping 0.2% to 481 yen.
Robot maker Fanuc Corp rallied 3.4% to 22390 yen after confirming a media news report saying it planned to invest about $1.1 billion in Japanese production and research facilities.
Takata Corp. fell 5.4% to 1321 yen after the chief executive of Honda Motor Co. said he isn't interested in financially aiding the embattled air bag maker.
China stocks extend gain after FDI data
Mainland China share market closed higher, registering sixth consecutive session on advance, after official data indicating China's foreign direct investment surged in January. The market also drew support from, surge in broadest measure of new credit in January and liquidity unlocking from last week's initial public offering. The Shanghai Composite Index climbed 0.6% to 3,222.36.
The Ministry of Commerce said on Monday that China attracted $13.92 billion of foreign direct investment in January, up 29.4% from a year earlier. The figure was above December's $13.32 billion, which was 10.3% higher than a year earlier. Chinese investments overseas reached $10.17 billion in the first month of the year, up 40.6% from a year ago.
The People's Bank of China said on Friday, 13 February 2015, that aggregate financing was 2.05 trillion yuan ($328 billion) in January 2015. New yuan lending by banks totaled 1.47 trillion yuan, up from 697.3 billion in December 2014.
Market also benefited from an improvement in liquidity as some of the money frozen in last week's IPO rush - estimated by some to be worth around 2 trillion yuan - flow back into stocks.
Total of nine out of ten SSE industry groups advanced, with information technology issue leading rally, up by 4.5%, followed by telecommunication services (up 4%), consumer discretionary (up 2.9%), consumer staples (up 1.5%), healthcare (up 1.3%), materials (up 0.8%), utilities (up 0.7%), energy (up 0.7%), and industrials (up 0.6%). The financial sector ended 0.4% down.
Shares of consumption-related sectors, including media, healthcare and telecommunications, led gains amid hopes it would benefit from a boom in consumption during the upcoming Lunar New Year holiday. Huayi Brothers Media Corp., China's leading film makers, rose 3.5% to CNY29.68, with Wanda Cinema Line Co. gained 1.7% at CNY100.
Financial stocks ended lower. Citic Securities was down 0.6% at CNY28.97, while China Merchants Bank lost 1.2% to CNY14.46.
Hang Seng jumps 0.2%
Hong Kong share market ended firmer in quiet trade, on tracking gains on the offshore market on Friday and after data showing China's foreign direct investment surged in January. The benchmark index opened 35 points higher and moved within a narrow band of 84 points. The Hang Seng Index ended up 43 points or 0.2% to 24,726, off an intra-day high of 24,771 and day low of 24,687. Turnover reduced significantly to HK$51.3 billion from HK$71.7 billion on Friday, ahead of Lunar New Year.
HSI Company said CK Hutchison Holdings will replace Cheung Kong in all relevant indexes on its listing date, while Hutchison Whampoa will be removed from all relevant indexes on completion of the merger. Cheung Kong (00001) added 1% to HK$151.5. Hutchison Whampoa (00013) also gained 1.3% to HK$104.2.
BYD (01211) jumped 10% to HK$32.55 after the Ministry of Science and Technology proposed to build industry chain for electric vehicles.
Short-selling research group Glaucus Research initiated coverage of Ozner Water (02014) at "strong sell". The stock plunged 20% to HK$2.63 before requesting suspension of share trading. Separately, Sound Global (00967) dived 30% to HK$5.39 on resumption of trading after another short seller report accused the company of false financial statement earlier the month, leading to a trading suspension.
Sensex, Nifty end a tad higher in volatile session
A lion's portion of the intraday gains for key benchmark indices was erased during the last 30 minutes of the trading session. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, regained positive zone after slipping into the red from green for a brief period in late trade. Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit their highest levels in almost 2-1/2 weeks in early trade. The market breadth indicating the overall health of the market was negative. The Sensex was provisionally up 32.23 points or 0.11% to 29,127.16. On the macro front, the latest data showed that the wholesale price index fell in January as fuel prices declined.
Indian index heavyweight ITC edged higher. Index heavyweights ICICI Bank and Reliance Industries declined. Housing finance major HDFC rose after good Q3 results. Infosys edged lower after the company announced the acquisition of automation technology provider, Panaya, Inc., in cash, for an enterprise value of $200 million.
Foreign portfolio investors bought shares worth a net Rs 390.26 crore during the previous trading session on Friday, 13 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 95.82 crore on Friday, 13 February 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.04% to 1958.23. New Zealand market fell 0.49% to 5758.25. Indonesia's Jakarta Composite index fell 0.9% to 5325.50. Singapore's Straits Times index jumped 0.03% at 3427.16. Malaysia's KLCI was up 0.44% to 1808.89.
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