Asia Pacific share market wrapped first trading day of the week, Monday, February 04, 2013, mostly higher after positive economic data encouraging investors to build on positions. The MSCI Asia Pacific Index added 0.5% to 133.4.
Regional bourses started today's trading with firm footing as renewed hopes of economic revival across the globe are leading investors to prefer equities. Investors risk appetite underpinned on multitude of factors, including US employment data that indicated some improvement in the health of the world largest economy and Chinese macroeconomic scenario after better than expected readings on services sector.
The US Labor Department figures showed payrolls gained 157,000 in January after a revised 196,000 advance in the prior month. The jobless rate rose to 7.9% from 7.8%. Other reports showed US manufacturing reached a nine-month high in January, beating forecasts. Confidence among households also rose unexpected.
Also Read
Data from the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed on Monday that the non-manufacturing Purchasing Managers' Index, a measure of China's services industries, climbed to 56.2 in January from 56.1 in December, gains in retailing and construction aided government efforts to drive a recovery. A reading above 50 indicates expansion.
However gains in the upside mostly capped as investors prepared for the second half of earnings season and the latest U.S. factory-orders data. Trading in US index futures indicated a flat opening of US stocks on Monday, 4 February 2013. US stocks surged on Friday, 1 February 2013. The Dow Jones Industrial Average ended above 14,000 in the US market on Friday, February 1, 2013, for the first time in five years after Labor Department figures showed a modest 157,000 rise in nonfarm payrolls for January and that more jobs were added to the U.S. economy last year than previously thought. Other figures out Friday showed U.S. manufacturing expanding to a nine-month high.
In the Asia Pacific, Japan's Nikkei 225 Stock Average rose 0.6% to 11260.35, a highest level in 34-months. Composite index advanced 0.38% to 2,428.15, its highest closing level since May 8, 2012. Singapore's Straits Times Index rose 0.2%, Malaysia's KLSE Composite rose 0.4%, Indonesia's Jakarta Composite added 0.2%, and Taiwan's Taiex Index gained 0.9%. New Zealand's NZX50 was marginal up at 4,246.40.
Hong Kong's Hang Seng Index fell 0.2% with volume about HK$128.16 billion on second tranche of sale in Ping An by HSBC. Australia's All Ordinaries Index slid 0.26% on profit taking after stellar gains last month. South Korea's Kospi Index lost 0.1%. India's Sensex dropped 0.15% on profit taking.
Back to country wise performances, the Japanese market shares started a week with firm tone, with the benchmark Nikkei Stock Average climbed up 69 points from prior day closure to 11260.35, a highest level in 34-months, and registering fifth day of straight gains.
Japanese exports stocks were sharply higher on earning optimism after the Japanese yen weakening to multi-month low against the major currencies. The U.S. dollar traded near 92.78 yen on Monday trading in Tokyo, from 92.50 yen in late North American trading on Friday. The euro bought 126.24 yen, from 126.36 yen late last week. Auto stocks went sharp up, with Nissan Motor Co rose 4.3% to 975 yen and Mitsubishi Motors Corp added 21.4% to 125 yen.
Sharp Corp advanced 5.5% to 347 yen after the firm announced late last week a narrower quarterly net loss. Panasonic Corp went limit up of 100 yen or 16.9% to finish at 692 yen following Friday's solid earnings announcement. Steelmaker JFE Holdings Inc jumped 11.1% to 2272 yen, helped by an upgrade to buy from neutral at Daiwa Securities.
In Australia, Australian share market closed lower, as investors chose to took some cash off the table after stellar gains last month after soft building approval figures took away a bit of confidence. Figures released by the Australian Bureau of Statistics showed home approvals fell by 4.4% in December. The barometer All Ordinaries index declined 12.8 points to 4929.10.
Financials were a considerable weight on the Australian market, with Westpac leading the losses among the big four banks, down 1.3% to A$27.94. Commonwealth Bank of Australia fell 0.52% to A$64.71, Westpac dropped 1.3% to A$27.94, and ANZ fell 0.7% to AS$26.55. Macquarie Group fell 1.4% to A$38.73. Suncorp fell 1.4% to A$10.71.
Rio Tinto shares rose 1.2% to A$67.99, after the miner's A$3 billion Pilbara mine expansion was approved by the Western Australian government.
Aquila Resources shares lost 3.9% after the company put postponed its A$7.4 billion iron ore project in West Pilbara. Linc Energy dropped 4.7% to A$2.05 after a report in BusinessDay continued to place doubt over the company's claims that it could produce ultra-clean fuel for around A$30 a barrel.
In New Zealand, NZ shares closed tad higher after hitting fresh five-year highs early today, with PGG Wrightson and NZ Oil & Gas led rally as commodity prices rose and investors continued to be drawn to the relatively attractive dividend yields. At close, the NZX 50 gained 0.46 points, or 0.01%, to 4246.40, edging back to the five-year high 4252.65 reached on Jan. 31.
In China, the Mainland China's market were modest higher, led by energy and financials blue chips after official data showed China's services sector expanded for a fourth consecutive month in January. The benchmark Shanghai Composite index advanced 9.13 points from prior day closure to 2,428.15, its highest closing level since May 8, 2012. The Shanghai index has risen 24% from a three-year low on Dec. 3, signaling a bull market to some investors, on signs economic growth is accelerating.
Energy shares were top gains in the China's market today, led by coal producers. China Shenhua Energy Co gained 1.3% to 24.93 yuan and Yanzhou Coal Mining Co added 6.7% to 19.66 yuan. Shanxi Lanhua Sci-Tech Venture Co added 4.3% to 22.99 yuan, Shanxi Lu'an Environmental Energy Development Co 7.7% to 24.73 yuan, and Yang Quan Coal Industry (Group) Co 3.9% to 16.57 yuan. PetroChina CO advanced 0.8% to 9.36 yuan.
In the Hong Kong, HK shares ended mostly lower after steaming out initial gain, as investors opted to book some gains after the benchmark indices hitting a 21-month high at one stage early today. Hang Seng Index declined 36.83 points to 23,685.01 while the Hang Seng China Enterprises Index dropped 58.45 points to 12,156.58. Full-day turnover totaled HK$128.16 billion thanks to the second tranche of sale in Ping An by HSBC, compared to HK$70.6 billion on Friday.
In India, the Indian benchmark indices reversed intraday gains in late trade on concerns that PSU disinvestment and reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% will result in supply of equity in the market over the next few months. The market breadth, indicating the overall health of the market, was negative. The 50-unit S&P CNX Nifty fell below the psychological 6,000 mark in late trade. The Sensex shed 30 points or 0.15%, off 151.41 points from the day's high and up 22.98 points from the day's low.
Powered by Capital Market - Live News
