Asia Pacific share market rebounded on Monday, 03 October 2016, with investor sentiment brightened by a rebound on Wall Street in last week's final session following news Deutsche Bank is close to a settlement with US authorities over the sale of toxic mortgage bonds.
A wide range of issues attracted buybacks from the outset after the Dow Jones industrial average rallied on the New York Stock Exchange Friday as concern over Deutsche Bank's financial plight receded. Investors' risk-averse sentiment weakened following a news report that the major German bank could settle with the U.S. Justice Department for $5.4 billion over illicit sales of mortgage-backed securities in the past, much lower than the $14 billion initially requested by the department.
The Bank of Japan's tankan survey released today, 3 October 2016 showed Japan's large manufacturers now expect their pretax profit to drop 14.6% in this financial year through March, compared with a previous forecast for a 11.6% fall.
Meanwhile, activity in China's manufacturing sector expanded again in September, data released on 1 October 2016 showed. The official Purchasing Managers' Index (PMI) stood at 50.4 in September, identical with the previous month's level, the National Bureau of Statistics said. The non-manufacturing PMI rose to 53.7 from 53.5 in August.
Among Asian bourses
Australia Market gains; financial, resources leads
Australian share market finished higher on first trading session of the week as well as of month, with the big banks and energy groups leading the rally. At the closing bell, the benchmark S&P/ASX 200 index had rebounded 42.6 points, or 0.78%, to 5,478.5, while the broader All Ordinaries index advanced 39.6 points, or 0.72%, to 5,564.8.
Shares of financial companies soared up with big four banks leading the way, as the risk of contagion from Deutsche Bank's troubles was downplayed. Westpac jumped 1.8% to A$30.05, while Commonwealth Bank climbed 1.5% to A$73.455, NAB lifted 0.7% to A$28.065 and ANZ rose 1.1% to A$27.94.
The energy sector also shone after crude prices continued their march higher in offshore trade at the end of last week. Santos surged 3% to A$3.72, Origin Energy added 1.9% to A$5.52, while Woodside bounced 0.9% to A$28.89.
Materials and resources were also higher, aided by a rise in most base metals, although weakness in iron ore kept Fortescue Metals in check. BHP bounded 1.7% to $22.77, Rio Tinto rose 0.6% to A$51.91 and BHP spinoff South32 enjoyed a solid day, up 2.5% while Fortescue bucked the trend in sliding 1.1% to A$4.895. Copper and gold miner OZ Minerals dipped 1% after warning investors the South Australian power outage put its gold production targets at risk.
Japan Market rebounds on offshore lead
The Japan share market turned higher, with investor sentiment brightened by tracking gains on the Wall Street on last Friday and news Deutsche Bank is close to a settlement with US authorities over the sale of toxic mortgage bonds. Every industry category on the main section except mining issues and oil and coal product stocks gained ground, led by retail, securities and food issues. The 225-issue Nikkei average rose 148.83 points, or 0.90 percent, to close at 16,598.67. The Topix index of all first-section issues ended up 7.94 points, or 0.60 percent, at 1,330.72.
Mega-banks Mitsubishi UFJ and Mizuho were buoyant, along with brokerage Nomura. Automakers Toyota and Honda, air conditioner producer Daikin and sensor maker Keyence gained ground.Also on the plus side were Uniqlo owner Fast Retailing and industrial robot manufacturer Fanuc, both heavily weighted components of the Nikkei average.Food and beverage maker Asahi Group Holdings rose 3.6% to 3,798 yen. Medical information platform provider M3 Inc. gained 3.1% to Y3,545. Chocolate and yogurt maker Meiji Holdings Co. added 3.0% to Y10,290. Kawasaki Heavy Industries fell 11% to Y276 after the company lowered its forecasts for sales, profits and dividends for the year ending March, citing the yen's broad strength and deterioration of its shipbuilding business. The company cut its sales forecast by 3.8% to Y1.51 trillion ($15 billion), its net profit view by 66% to Y16.5 billion, and the dividend forecast to Y6 per share from Y10.
Hong Kong Stocks rebound
The Hong Kong stock market has surged into a positive close in quiet trade, with investor sentiment brightened by a rebound on Wall Street in last week's final session after easing concerns about the financial health of Deutsche Bank. The Hang Seng Index ended up 1.23% or 287.28 points to 23,584.43, while the Hang Seng China Enterprises index added 1.06% or 101.44 points to 968337. Turnover decreased to HK$48.6 billion from HK$70.4 billion on Friday.
HSBC (00005) today is reviewing the proposal of third dividend for the financial year. It put on 1.6% to HK$58.05 despite talks that it plans to close its IT center in Scotland and lay off staffers. Bank of East Asia (00023) jumped 3.5% to HK$32.55. It was top blue-chip winner today. AIA (01299) jumped 1.8% to HK$52.5 after Credit Suisse's target price upgrade.
Macau's September GGR growth came in better-than-expected at 7.4%. Galaxy Entertainment (00027) jumped 2.9% to HK$30.05. Sands China (01928) shot up 1.8% to HK$34.25.
China National Tourism Administration said the aviation industry served 965,000 tourists for the first day of the week-long holiday, hitting fresh record. Air China (00753) soared 3% to HK$5.37. China South Airlines (01055) gained 3.5% to HK$4.5. China East Airlines (000670) put on 2.8% to HK$3.67.
China Shenhua (01088) rose 1.5% to HK$15.38. China Coal (01898) fell 1.7% to HK$4.12. It was reported that the top four coal mining companies, including China Shenhua and China Coal, plan to raise coal price to RMB88/ton starting this month.
Sensex regains 28,000
Trading for October started on a buoyant note as key benchmark indices logged strong gains led by gains in index heavyweights HDFC, L&T and Reliance Industries (RIL). The S&P BSE Sensex rose 377.33 points or 1.35% to settle at 28,243.29. The Nifty 50 index gained 126.95 points or 1.47% to settle at 8,738.10.
Hero MotoCorp rose 3.18%. The company's sales rose 11% to 6.74 lakh units in September 2016 over September 2015. The company registered highest ever sales in any month so far in September 2016. The announcement was made after market hours today, 3 October 2016. The growth momentum was backed by a series of positive factors such as the successful market launch of the Splendor iSmart 110; augmented leadership in the 125 cc segment with the 'Glamour', emerging as the largest- selling 125 cc motorcycle in the country and the positive trend maintained by the new scooter portfolio.
Index heavyweight and engineering and construction major L&T advanced 2.75% after the company said that its construction arm L&T Construction has won orders worth Rs 6024 crore across various business segments.
Bharat Heavy Electricals (Bhel) rose 1.89% after the company said that it secured two renovation and modernisation (R&M) contracts worth around Rs 430 crore of hydro electric plants.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 rose 0.2% to 7372.49. Singapore's Straits Times index added 1% to 2870.84. Indonesia's Jakarta Composite index rose 1.9% to 5463.92. Taiwan's Taiex rose 0.7% to 9234.20. Share market in China, Malaysia, and South Korea closed for national holiday.
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