Asia Pacific Market: Stocks jumps on Russia-Ukraine ceasefire, Greek debt deal

Asia Pacific share market closed higher on Friday, 13 February 2015, following a global advance overnight, supported by reports of a new cease-fire agreement between Russia and Ukraine, Sweden's surprise move to cut its main rate into negative territory, and Greece agreeing to talks over its debt problems.

Russia and Ukraine reached a new deal on a ceasefire in eastern Ukraine on Thursday, 12 February 2015. Russian President Vladimir Putin and Ukrainian President Petro Poroshenko emerged from marathon talks in the Belarusian capital of Minsk to give separate press conferences announcing that a ceasefire would begin at midnight on Feb. 15.

Also, surprisingly aggressive dose of stimulus from Sweden's central bank on Thursday injected life back into world markets. Sweden's central bank cut its main interest rate below zero and unexpectedly unveiled plans to start buying government bonds to jolt the largest Nordic economy out of a deflationary spiral. The Riksbank lowered its repo rate to minus 0.10% from zero.

Greece agreed on Thursday to talk to its creditors about the way out of its hated international bailout in a political climb-down that could prevent its new leftist-led government running out of money as early as next month.

Prime Minister Alexis Tsipras, attending his first European Union summit, agreed with the chairman of euro zone finance ministers, Jeroen Dijsselbloem, that Greek officials would meet representatives of the European Commission, the European Central Bank and the IMF on Friday.

Among Asian bourses

Australia stocks Rally, with Rio Tinto soaring on buyback

The Australian share market closed sharply higher, registering first gain in five consecutive sessions, on tracking gains for both commodities and U.S. markets overnight after reports of a new cease-fire agreement between Russia and Ukraine. Also helping support the sentiment was upbeat earnings reports from iron-ore mining giant Rio Tinto and scrap-metal merchant Sims Metal Management. The S&P/ASX200 closed 133.90 points, or 2.33%, lower at 5877.50, while the All Ordinaries tracked closely behind, grew 127.80 points, or 2.24%, to 5835.50.

Materials and resources stocks advanced the most in Sydney market, following upbeat earnings reports from iron-ore mining giant Rio Tinto and scrap-metal merchant Sims Metal Management. Rio Tinto shares surged 6.5% to A$63.79, after announcing a 12% increase in its dividend payout and a large share-buyback program late Thursday. Sims Metals rose 10.6% to A$11.75, after the metal recycler posted an underlying first half profit of A$64.4 million, up 53%. However, shares in Newcrest Mining ended a cent lower at A$13.90 after posting a sharp 400% gain in fiscal first-half net profit to A$200 million, but also a significant rise in its debt level.

Japan shares drop on profit taking, stronger yen

Japanese share market closed weaker, as investors pocketed some gain off the table on disappointing US economic data released overnight, fading additional Bank of Japan easing, and strengthening yen against the greenback. The Nikkei Stock Average declined 66.36 points, or 0.37%, to 17913.36. The broader Topix also ended 0.01 point softer at 1449.38.

Shares of real estate developers gain broadly in the Tokyo Market today. Mitsui Fudosan gained 2.1% to 3300 yen. Mitsubishi Estate rose 3.2% to 2650 yen.

Export related stocks fell, hurt by the dollar's weakness against the yen. The dollar fell to Y118.50 from a one-month high marked on Wednesday. Toshiba retreated 2.6% to 474 yen, while Canon Inc lost 0.6% to 3812.50 yen and Toyota Motor nursed losses of 0.6% to 7808 yen. Sony Corp, which is due to launch its high-end Walkman ZX2, dropped 0.3% to 3220.50 yen.

Sumitomo Rubber Industries soared 8.5% to 1956 yen after announcing a 19% net profit increase in the fiscal year ended in December and a dividend increase for the period.

Online retailer Rakuten charged 5.3% to 1770 yen on the back of a 73% jump in fourth-quarter operating profit.

China stocks extend gain on policy easing hopes

Mainland China share market advanced for fifth consecutive session, as appetite for risk assets supported by central bank liquidity injection steps and speculation of further monetary easing. The Shanghai Composite Index climbed up 0.5%, or 15.71 points, to 3173.42 at the close. For the week, the benchmark index has gained 4.2%.

The Beijing market has been supported throughout the week by expectations of further monetary easing following last week's cut to the reserve requirement ratio and a large amount of reverse repos before the Chinese New Year.

Market liquidity worries eased after China's central bank has conducted 160 billion yuan (US$26 billion) worth of reverse repurchase agreements. The People's Bank of China yesterday conducted 80 billion yuan of 14-day reverse repos at an interest rate of 4.1%, and 21-day reverse repos worth 80 billion yuan at a rate of 4.4%.

The market was also supported by the country's politburo statement on late Thursday that its economic fundamentals remain unchanged despite slower economic growth. It also said that the country's leadership will step up its efforts to ensure economic growth remains in a reasonable range.

Property stocks were broadly up after industry surveys showing China's property market, a key contributor to economic growth, could have bottomed and even started to rebound in January after eight months of decline. Developers such as Gemdale and China Vanke rallied more than 2%, respectively.

Financial stocks also surged after the People's Bank of China said on Thursday that firms and financial institutions in Shanghai's Free Trade Zone (FTZ) would be allowed to conduct overseas financing without government approvals, and the ceiling of their leverage ratios for these activities would also be raised. The move is seen as another step towards financial liberalization, and would reduce financing costs of companies in the FTZ. In the finance sector, AJ Corp surged to the 10% limit. Bank of China tacked on 1.5%, while Agricultural Bank of China and China Construction Bank made gains of 1.9 and 0.9% each. Among junior banks, Hua Xia Bank rallied 3.3%.

Hang Seng jumps 1.07%

Hong Kong share market closed higher, following a global advance overnight, supported by reports of a new cease-fire agreement between Russia and Ukraine, Sweden's surprise move to cut its main rate into negative territory, and Greece agreeing to talks over its debt problems. The Hang Seng Index ended higher by 260.39 points or 1.07% to 24682.54, off an intra-day high of 24521.13 and day low of 24702.54. Turnover decreased to HK$71.69 billion from HK$73.28 billion on Thursday.

Shares of casino players rallied, with Sands China (01928) being major winner, higher by 3.2% to HK$38.65 after the company reported a 15% growth of its 2014 earnings. Galaxy Ent (00027) put on 4% to HK$43.45 becoming the best blue chip performer. SJM (00880) gained 3.7% to HK$11.64.

BYD was up 9.1% to HK$29.40, on news that the Chinese carmaker backed by Warren Buffett signed a deal to sell Holitech, its component unit, for about $368.35 million.

China Life Insurance Co rose 1.8% to HK$32 after the company reported a 6.2% year-on-year increase in its premium revenues for last month.

Bank of East Asia sold off 1.6% to HK$31.85 after executives on Thursday defended a planned capital raising, which is under pressure from hedge fund Elliott Management.

Sensex reclaims 29,000 level

Indian benchmark indices surged for a fourth consecutive day on positive cues from Asian and European markets. The Sensex was provisionally up 270.12 points or 0.94% at 29,075.22. The CNX Nifty was up 93.95 points or 1.08% at 8,805.50, as per provisional figures.

Bank stocks edged higher after SBI's strong Q3 results. FMCG stocks advanced. Index heavyweight and cigarette maker ITC gained after the company said it has entered into Asset Purchase Agreements with Johnson & Johnson, India & Johnson & Johnson Pte., Singapore on 12 February 2015, for purchase of 'Savlon' and 'Shower To Shower' trademarks and other intellectual property, respectively, primarily for use in India. Mahindra & Mahindra (M&M) shrugged off weak Q3 results. BPCL rose after turnaround in Q3. Index heavyweights Infosys and HDFC Bank dropped.

On the macro front, the rate of inflation based on the consumer price index (CPI) accelerated to 5.11% in January 2015 from 4.28% in December 2014 after the statistics ministry revised the base year for the calculation of the index to 2012 from 2010. Meanwhile, growth in industrial production decelerated to 1.7% in December 2014 from 3.9% in November 2014. Both CPI and industrial production data was announced after market hours yesterday, 12 February 2015.

Prime Minister Narendra Modi yesterday, 12 February 2015, said that the government is committed to provide predictable and stable tax regime and policies. Finance Minister Arun Jaitley yesterday, 12 February 2015, said that the government is determined to pursue economic reforms despite a defeat for the Bharatiya Janata Party (BJP) in assembly election in Delhi early this week.

Foreign portfolio investors sold Indian shares worth a net Rs 406.28 crore yesterday, 12 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 705.53 crore yesterday, 12 February 2015, as per provisional data.

Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.35% to 9529.51. South Korea KOSPI rose .82% to 1957.50. New Zealand market grew 0.65% to 5786.54. Indonesia's Jakarta Composite index added 0.58% to 5374.17. Singapore's Straits Times index jumped 0.21% at 3426.22. Malaysia's KLCI was up 0.66% to 1800.95.

Powered by Capital Market - Live News