Asia Pacific Market: Stocks finish stronger

Asia Pacific share market continued uptrend on Friday, 20 November 2015, after confirmation about the timing of a US interest rate rise and speculation the Chinese government will take more steps to stimulate the economy.

Risk sentiment boosted up after confirmation about the timing of a US interest rate rise. The Fed has finally confirmed it will start this ball rolling in December. The Fed statement ushers in a level of certainty - and markets welcomed the confirmation of raising interest rate in December.

The minutes of the latest Fed board meeting showed most members expect to raise interest rates in December for the first time since 2006. But they said the pace of any rate rises next year would be gradual.

Fed vice president Stanley Fischer said yesterday that "some major central banks" could lift interest rate from near zero "in the relatively near future". And he also noted that Fed has done "everything we can to avoid surprising the markets and governments when we move". And, while Fed doesn't take orders from others, Fischer note that other central banks were asking Fed to get on with rate hike and that indicated they have "made their preparations". Also, he noted that FOMC meetings have become more "exciting and interesting" as Fed is near accommodation removal.

China's central bank took another step to reduce the rates banks charge businesses and consumers in an attempt to counter the deflationary pressure that is weighing on growth in the world's second-largest economy. In a move characteristic of its incremental approach to dealing with China's economic slowdown, the central bank on Thursday lowered rates charged by a short-term lending facility used to provide liquidity to commercial lenders. The central bank said that starting Friday, November 20, 2015, it will cut the overnight lending rate on its standing lending facility, or SLF, to banks to 2.75%, from the current 4.5%. It will also lower the seven-day bank-loan rate to 3.25%, from 5.5%. Thursday's rate cut applied to city commercial banks, credit cooperatives and trust companies, which do a bigger share of their lending to small and private businesses. The reduction is just one of many measures, including six interest-rate cuts and multiple releases of bank reserves, that the People's Bank of China has taken in the past year to try to recharge economic growth.

Among Asian bourses

Australia Market jumps 0.26%

The Australian share market advanced for third straight session on Friday, 20 November 2015, with financial, grocery, bullion, and technology stocks were among major gainers. The benchmark S&P/ASX 200 index ended 13.50 points, or 0.26%, higher at 5256.10 points, while the broader All Ordinaries index climbed up 12.20 points, or 0.23%, to 5305.50 points. The ASX 200 added 4% over the five sessions.

Financial stocks were stronger, with top four banks were among major gainers. Commonwealth Bank advanced 0.9% and Westpac Bank both rose 0.9% to A$79.83 and A$31.86, respectively. National Australia Bank and ANZ Bank both added 0.8% to $29.96 and A$27.74, respectively.

Mining stocks were mixed amid profit booking. BHP Billiton shares rose 0.4% to A$20.50 while Rio Tinto fell 0.1% to A$48.61 and Fortescue Metal dropped 3.7% to A$2.09 with the iron ore price falling further overnight.

Nikkei rises to fresh three-month high

The Japanese share market registered fourth day of consecutive gain and closing at highest level since late August on Friday, 20 November 2015, as last minute bargain-hunting erased earlier losses. The benchmark bourse dropped as much as 0.73% in intraday trading before recovering into positive territory shortly before the close. The day's notable gainers comprised Chemicals, Services, Retail Trade, and Pharmaceutical issues, while Marine Transportation, Rubber Products, Securities & Commodities Futures, and Transportation Equipment issues were among major losers. The Nikkei 225 index at the Tokyo Stock Exchange gained 0.10%, or 20.00 points, to 19,879.81, its highest close since Aug. 20, while the wider Topix index of all first-section shares finished up 0.17%, or 2.80 points, at 1,603.18.

Shares of chemicals players were biggest gainers among the 33 industry groups on the broader gauge, led by cosmetics companies Kao Corp (up 1.9%) and Shiseido Co (up 2.7%), after JPMorgan Chase & Co. reiterated its overweight recommendation on both stocks, while Barclays Plc raised its target price on Kao by 1.4%.

Shares of Renesas Electronics Corp. surged 11% after a report German chipmaker Infineon Technologies AG expressed interest in investing in the Japanese company.

Sharp Corp. jumped 4.8% after a report the money-losing electronics company's television business will post a profit next year.

Toto dropped 1.4% after Credit Suisse Group AG lowered its rating on the toilet maker's stock to underperform from neutral as it expects to see a tapering of new construction demand in Japan and uncertainty in the Chinese housing market.

China Market rises after PBOC cuts borrowing costs

The Mainland China stock market finished session in positive territory, following news that the People's Bank of China will further slash interest rates on the loans it gives to banks. But gains were limited amid caution ahead of upcoming new share sales. The Shanghai Composite Index advanced 0.37%, or 13.44 points, to close at 3630.50 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 1.27%, or 28.62 points, to close at 2285.83. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was up 1.06%, or 29.40 points, to close at 2800.15.

China's securities regulator lifted a four-month ban on initial public offerings this month, allowing 28 companies whose listings have already been approved to go public by year end. Ten of them are expected to start new share sales as soon as next week after they update their listing documents, and expected to freeze more than 960 billion yuan.

Shares of industrial and material advanced the most among SSE 10 industry groups. China Railway Construction Corp. and CRRC Corp. gained at least 1.1% after Shanghai Securities News reported that China and Poland may sign agreements on high-speed rail and nuclear projects. China Molybdenum Ltd. jumped 10% and Tongling Nonferrous Metals Co. advanced 4.6%.

Hong Kong Market jumps 1.13%

A late-day bargain buying helped the Hong Kong stock market to finish sharply higher, amid speculation the China's central bank may cut lenders' reserve-requirement ratios to stimulate the economy. All major sectors improved, with financial and realty stocks being among major gainers. The benchmark Hang Seng Index advanced 254.50 points, or 1.13%, to 22754.72 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, has gained 108.89 points, or 1.07%, to 10302 points. Turnover reduced to HK$64.4 billion from HK$66.8 billion on Thursday.

Realty developers were up, led by SHKP (00016) and CK Property (01113), up 2.9% to HK$99.6 and 0.9% to HK$53.55, respectively, after rated "outperform" by Macquarie Research. Henderson Land (000120) jumped 3% to HK$49.35. It

PetroChina (00857) rose 2.2% to HK$5.63 after reportedly to restructure its pipeline in preparation for future spinoff. Kunlun Energy (00135) rose 3% to HK$6.59. CNOOC (00883) put on 2.6% to HK$8.55.

China Unicom (00762) gained 1.4% to HK$10.06 despite its 3G and 4G new user additions slowed to 4.021 million in October. China Telecom (00728) rose 2.6% to HK$4.01. China Mobile (00941) nudged up 0.9% to HK$91.75.

Military defense counters gained support from a report that China has agreed to spend US$2 billion to buy fighters from Russia. China Aerospace (00031) jumped 3.6% to HK$1.16. AVIC IHL (00161) shot up 5.2% to HK$4.86.

Sensex ends with gains

Indian benchmark indices witnessed immense volatility today. The barometer index, the S&P BSE Sensex, rose 26.57 points or 0.10% to settle at 25,868.49. The Nifty 50 index rose 13.80 points or 0.18% to settle at 7,856.55.

NTPC rose 0.45% to Rs 134.35. The company said after market hours yesterday, 19 November 2015, that the company has mandated Barclays, Citigroup, Deutsche Bank AG, HSBC and SBI Capital Markets to arrange a series of fixed income investors meetings in London, Singapore and Hongkong commencing 23 November 2015. An offshore rupee denominated senior notes offering under 'Regulation S' may follow, subject to market conditions.

PTC India Financial Services (PFS) rose 1.82% to Rs 41.90. The company after market hours yesterday, 19 November 2015, announced that it has signed a Memorandum of Understanding (MoU) with India Infrastructure Finance Company (IIFCL) to provide financing for infrastructure projects in India. As per the agreement, PFS and IIFCL will come together to provide one single window to promoters of infrastructure projects particularly in energy value chain and facilitate their financing in India. Both companies will collaborate to provide credit enhancement facility to various projects to enable their financing at competitive rates, apart from collaborating in areas of mutual interest towards service to infrastructure sector, PFS said in a statement.

Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.14% to 8465.45. South Korea's KOPSI grew 0.05% to 1989.86. Malaysia's KLCI added 0.1% to 1661.89. Singapore's Straits Times index fell 0.4% at 2908.79. Indonesia's Jakarta Composite index rose 0.94% to 4561.33. New Zealand's NZX50 added 0.22% to 6008.52.

Powered by Capital Market - Live News