Asia Pacific share market has closed higher on Tuesday, 17 November 2015, recovering losses from the previous day sparked by the Paris attacks, as bargain hunting flagged following gains in U.S. and European bourses overnight while positive economic data in the region underpinned sentiment. The MSCI Asia Pacific Index added 0.6% to 131.31.
Wall Street had its strongest session in three weeks on Monday, as investors bet Friday's attacks in Paris would have little long-term impact on the U.S. economy and corporate earnings. The Dow rose 1.4% and the S&P 500 surged 1.5%. European equities also held firm on Monday, with the pan-European FTSEurofirst 300 index edging up 0.16% and France's CAC was down only 0.12%.
Investors are awaiting the releases this week of U.S. data on consumer prices, factory activity and housing starts for further clues on the probability of a boost in interest rates. Minutes from the Federal Reserve's October policy meeting will be released on Wednesday. Traders are pricing in a 66% probability that the Fed will raise rates next month.
Data showed Singapore exports fell less than expected in October as sales to Europe rebounded modestly, but underlying shipments remained weak amid sluggish global demand and look set to drag on the trade-dependent economy.
Indonesia's central bank's meeting on interest rate scheduled later on the day. The central bank is expected to maintain the benchmark interest rate at 7.5%.
Among Asian bourses
Australia stocks surge on bargain hunting
The Australian share market rebounded strongly, as investors chased for bottom fishing across the board, following a surge on Wall Street overnight and amid a slew of upbeat assessments of the local economy. All ten sectors gained ground, with energy and financial stocks being major gainers. The benchmark S&P/ASX 200 index ended 114.40 points, or 2.29%, higher at 5118.20 points, while the broader All Ordinaries index surged 109.80 points, or 2.17%, to 5174.30 points.
The Reserve Bank of Australia's minutes from its November meeting released today showed the central bank remained cautiously optimistic about the outlook for the economy, while leaving the door open to cut interest rates further if growth slows. The RBA board minutes said that the inflation outlook may afford some scope for further easing of monetary policy, should that be appropriate to lend of support to demand. In a separate speech, RBA assistant governor Chris Kent said that while China's slowdown represented a risk to the local economy, the story surrounding the world's second-largest economy wasn't entirely grim as demand for services is set to grow.
Shares of energy players were biggest gainers on the Sydney bourse as Brent oil prices rallied on Monday buoyed by news that output from the Organization of the Petroleum Exporting Countries saw third consecutive monthly decline, as France's airstrikes in Syria raised concerns over potential supply disruptions in the Middle East. West Texas Intermediate crude for December delivery added $1, or 2.5%, to settle at $41.74 a barrel on the New York Mercantile Exchange. January Brent crude on London's ICE Futures exchange tacked on 9 cents, or 0.2%, to $44.56 a barrel. OPEC oil production in October fell by 120,000 barrels a day from a month earlier, to its lowest level since Maymarking a third straight monthly decline, according to a Platts survey of OPEC and oil industrial officials and analysts released Monday.
Among energy blue chip stocks, Woodside Petroleum has gained 2% to A$29.40 and Santos rose 5.1% to A$4.34. Origin Energy went up 7.4% to A$5.24 and Oil Search rose 2.8% to A$8.16. Worley Parsons, a resources industry service company, was up almost 6% to A$5.88 after appointing a new finance chief, former Transurban executive Tom Honan.
Financial stocks were also high, with top four banks leading rally. Commonwealth Bank advanced 3.1% to A$77.07 after chairman David Turner said the nation's largest bank was optimistic about the economic transition away from the mining investment boom, although it's bound to take some time to move to non-mining led growth. Westpac Bank advanced 1.9% to A$30.60, National Australia Bank 2.3% to $28.50, and ANZ Bank 2.2% to A$26.49.
Nikkei surges 1.22%
The Japanese share market surged on Tuesday, 17 November 2015, following gains in U.S. and European markets overnight. Meanwhile, depreciation of yen against basket of major currencies amplified buying spirit. Barring insurance all Topix industry groups advanced, with shares of iron & steel, oil & coal products, agriculture, mining, paper, and nonferrous metals players being major gainers. The Nikkei Stock Average advanced 236.94 points, or 1.22%, to end at 19360.63 points. The broader Topix index has gained 0.93%, or 14.58 points, to 1586.11 at the close.
Shares of Fujikura, a cable manufacturer, jumped 9.1% and air-conditioner manufacturer Daikin Industries climbed 3.9% after Nomura Holdings Inc. boosted its ratings on both stocks. Nomura raised the Fujikura stock to buy from hold and Daikin to buy from neutral.
Fuji Heavy Industries gained 2% after raising its profit forecast on strong demand from the U.S. Insurers dropped after a report their first-half earnings because of typhoons.
China market ends softer
The Mainland China stock market ended marginally lower after paring early gain. Local market buoyant in early trade, as investor sentiment turned positive following overseas bourses rising overnight. But, Chinese stock indexes have erased early gains in the afternoon trading session after news of the resumption of initial public offerings. The Shanghai Composite Index fell 0.06%, or 2.16 points, to close at 3604.80 points, erasing a gains of as much as 2%. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.88%, or 19.80 points, to close at 2231.18. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was down 2.81%, or 80.11 points, to close at 2717.05.
Shares of technology and small-company plunged the most in the 10 SSE industry groups in Beijing on concern the resumption of initial public offerings will lure investors away from the nation's priciest equities.
Hong Kong Market rises 1.15%
Hong Kong stock market ended higher, as investor risk sentiment picked up after most overseas equity markets shook off risk aversion stemming from the terror attacks in Paris to gain ground overnight. The benchmark Hang Seng Index advanced 253.43 points, or 1.15%, to 22264.25 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, has gained 94.73 points, or 0.95%, to 10073.43 points. Turnover decreased to HK$73.86 billion from HK$76.9 billion on Monday.
Oil majors were higher after crude oil price rebounded on rising geographical tensions. CNOOC (00883) jumped 3.2% to HK$8.36. Sinopec (00386) shot up 0.6% to HK$4.99. PetroChina (00857) gained 2% to HK$5.59.
Macau government will deliver her Policy Address today, with market expecting measures to stimulate tourism. Galaxy Ent (00027) advanced 1.2% to HK$24.90. Sands China (01928) put on 2.6% to HK$28.
Tingyi (00322) softened 1.5% to HK$11.78, as the company yesterday announced its earnings report, triggering a slew of research houses to shave their target prices for the noodles and beverages manufacturer.
Sensex trades in a narrow range
A bout of volatility was witnessed as key benchmark indices moved in a narrow range in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex, was up 45.93 points or 0.18% at 25,806.03. The Nifty 50 index was up 9.55 points or 0.12% at 7,816.15.
Sun Pharmaceutical Industries rose 1.59% at Rs 752.10 on reports that a foreign brokerage has upgraded the stock to buy rating and raised the target price.
Apollo Tyres rose 2% to Rs 160.85, with the stock extending previous trading session's gains triggered by the company announcing acquisition of Reifencom GmbH.
Data released by the government after market hours yesterday, 16 November 2015 showed that India's merchandise exports continued to decline for the eleventh straight month at 17.5% to $21.35 billion in October 2015 over October 2014. Meanwhile, merchandise imports also dipped 21.2% to $31.12 billion. The trade deficit narrowed 28.1% to $9.77 billion in October 2015 from $14.47 billion in October 2014.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 1.5% to 8419.42. South Korea's KOPSI grew 1.1% to 1963.58. Indonesia's Jakarta Composite index added 1.7% to 4516.33. New Zealand's NZX50 added 0.1% to 5967.60. Malaysia's KLCI rose 0.6% to 1665.50. Singapore's Straits Times index rose 0.1% at 2918.82.
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