Investors took their lead from Wall Street, where the three main indexes rallied after the U.S. Commerce Department said retail sales rose 0.2% in December, surprising market expectation and also reinforcing confidence in the world's biggest economy. Tuesday's news soothed concerns about the U.S. economy after Friday's disappointing jobs report which had fuelled speculation the Federal Reserve could hold off announcing any further cuts to its stimulus program when it meets later this month.
Risk appetite also aided by the World Bank upgrade of its forecast for global growth this year by two tenths to 3.2%, compared with a June projection of 3% and up from 2.4% in 2013. The World Bank also predicted a faster pace for both 2015 and 2016.
Among Asian bourses, Japan's share market has clawed back some lost ground today as investors chased for bottom fishing across the board following steep losses prior day. Meanwhile rebound in the dollar against the yen and positive finish of Wall Street overnight also underpinned buying. The benchmark Nikkei Stocks Average ended 2.5% higher at 15808.73, clawing back a chunk of its 3.08% loss on Tuesday.
Japanese exporters were up, with semiconductor-related companies leading the broad gain, thanks to yen weakening against the greenback. The greenback bought 104.42 yen in Tokyo, up from 104.20 in New York and much stronger than the 103.43 yen in Asia earlier Tuesday. Kyocera gained 3.4% to Y5088. TDK rose 6.8% to Y5000. Tokyo Electron added 4.2% to Y5813.
Toshiba Corp. gained 4.55% to Y483 after the Westinghouse unit of the company agreed to buy a majority stake in NuGen, a U.K. nuclear joint venture between France's GDF Suez and Spain's Iberdrola.
GS Yuasa fell 0.7% to Y582 after Japan Airlines reported a battery malfunction on a Boeing 787 Dreamliner, a year after the jetliner was grounded worldwide for battery problems. GS Yuasa makes batteries for Dreamliner. Japan Airlines ended up 1.3% to Y5,300.
In Australia, shares in Sydney market closed higher for the first time in four consecutive sessions. The benchmark S&P/ASX 200 index rose 33.40 points to 5245.40, while broader All Ordinaries index jumped 35.70 points to 5255.50. All sectors finished in the green, exception being precious metal miners, with shares of consumer goods, retailer, tech, realty and financial counters were leading the advances.
Shares of consumer goods and retailers rebounded as investors chased for bottom fishing following recent selloff. Woolworths' shares added 0.3% to A$33.85 and Wesfarmers 1.2% to A$43.35. JB-Hi-Fi rose 0.8% to A$21, David Jones 0.7% to A$3.06 and Harvey Norman 1.3% to A$3.25.
Australia's financials stocks were stronger, with Commonwealth Bank rising 0.5% to $76.19, Australia & New Zealand Banking Group 0.6% to A$30.97, National Australia Bank 0.8% to A$33.83 and Westpac Banking Corp 0.6% to A$31.71. Bendigo Bank (BEN) jumped 0.5% to A$11.75 and Bank of Queensland 0.3% to A$11.89.
Shares of Australia's miners closed higher. Oz Minerals jumped 14% to A$3.50 after the company met its forecasts for full-year gold and copper production. Rio Tinto rose 1.4% to A$64.24 on speculation the miner's iron ore production may have risen more than expected. The company is due to update the market on Thursday with its December quarter operations review.
Fortescue Metals added 3.5% to A$5.33, as investors rewarding the company's financial diligence. The iron or miner announced it will repay $1.6 billion of debt, continuing its efforts to strengthen its balance sheet. Since November last year, the iron ore miner has reduced debt by $3.07 billion through the voluntary redemption of senior unsecured bonds due in 2015 and 2016.
Brickworks rose 1.4% to $14.28, following a further postponement of its general meeting until April 10. Shareholders will now have to wait three months to decide on the proposed $2 billion break-up plan put forward by Mark Carnegie and Perpetual head of equities Matt Williams.
In China, China's stock market declined, with financials and developers shares were leading downfall after credit growth slowed and concern grew that rising share supply from initial public offerings will sap demand for existing equities. The benchmark Shanghai Composite index provisionally closed 0.17% down at 2023.35.
Shares of financial companies slumped after People Bank of China data showed credit growth slowed. Data released by the People's Bank of China on Wednesday showed that China's new yuan-denominated lending were 482.5 billion yuan ($79.8 billion) in December. Aggregate financing dropped to 1.23 trillion yuan last month from 1.63 trillion yuan a year earlier. New loans reached 8.89 trillion yuan (1.46 trillion U.S. dollars) in 2013, up 687.9 billion yuan year on year.
Industrial & Commercial Bank of China dropped 1.7% to 3.46 yuan. Huaxia Bank, partly owned by Deutsche Bank AG, slid 2.4% to 8.01 yuan. China Construction Bank Corp. sank 0.8% to 3.97 yuan.
In Hong Kong, stocks in Hong Kong market rebounded with the benchmark index winning back complete losses made during the previous day's selloff. The benchmark Hang Seng Index advanced 0.49% to finish at 22902, clawing back more than its 0.43% loss on Tuesday.
Among the HK 50 blue chips, 29 rose and 20 fell, with 1 stock remaining steady. Lenovo Group became the top blue-chip gainer, adding 5.5% to HK$9.96. Wharf Holdings shed 2.2% to HK$57.85, becoming the biggest blue-chip loser in the day.
Shares of Mainland construction materials companies shined after some cement companies reported a profit increase for 2013. Anhui Conch Cement Co. jumped 5.86% to HK$28.90 after it projected a 50% jump in net profit for last year. China Resources Cement Holdings added 6.06% to HK$5.43, China Shanshui Cement Group added 6.94% to HK$3.08 and Beijing-based cement producer BBMG Corp added 3.41% to HK$6.07.
Property developers were mostly down, with Mainland developers suffered most losses after People Bank of China data showed credit growth slowed. Guangdong-based Country Garden Holdings shed 1.29% to HK$4.61 and Beijing-based Sino-Ocean Land Holdings shed 0.21% to HK$4.78. SHKP (00016), Sino Land (00083) and Henderson Land (00012) fell 0.2% to 1.6% to HK$96.6, HK$10.76, and HK$43.8 respectively. But New World (00017) gained 2% to HK$10.26. Cheung Kong (00001) nudged up 0.2% to HK$120.1.
In Indonesia, shares in Indonesian market rallied, sending the benchmark Jakarta Composite index 1.2% higher at 4441.59, the highest since Nov. 11. Among outperformers, nickel producer Vale Indonesia jumped as much as 7% after the government halted mineral ore exports in an attempt to promote processing domestically.
In Thailand, shares in Thai market retreated on Wednesday as investors locked in quick profits amid anti-government protests in Bangkok and uncertainty over the Feb. 2 poll, while Indonesian shares hit their two-month high with mining companies leading the pack. The Thai SET index was down 0.3% , after gaining 3.2% over the past two sessions, with mobile phone operator Advanced Info Service Pcl falling back after two straight sessions of rises.
Prime Minister Yingluck Shinawatra invited protest leaders and political parties to a meeting on Wednesday morning to discuss an Election Commission proposal to postpone the election until May. A meeting of the National Anti-Corruption Commission on Thursday, where it is set to bring formal charges against those involved in alleged corruption in the controversial rice-pledging scheme, including Yingluck, is also on focus.
In India, key benchmark indices flared up after a government data showed that inflation based on the wholesale price index (WPI) eased to five-month low at 6.16% in December 2013. Easing inflation provided legroom for the central bank to cut interest rates in its next policy meet in order to bolster growth. Firmness in Asian and European stocks also boosted sentiment. The S&P BSE Sensex rose 256.61 points or 1.22% to 21,289.49, its highest closing level since 9 December 2013. Among the 30 Sensex shares, 29 shares rose and only one fell.
Yes Bank rose 1.95% on good Q3 result. The bank's net profit rose 21.4% to Rs 415.60 crore on 17.4% growth in total net income to Rs 1053.30 crore in Q3 December 2013 over Q3 December 2012. Yes Bank's net-interest income (NII) rose 13.9% to Rs 665.40 crore in Q3 December 2013 over Q3 December 2012, on account of a cautious and steady growth in advances. Non-interest income rose 23.9% to Rs 387.90 crore in Q3 December 2013 over Q3 December 2012, on the back of continued growth across all fee income streams, Yes Bank said. The bank's net interest margin (NIM) declined to 2.9% from 3% in Q3 December 2012.
Bank of Baroda gained 3.59%. The bank said during market hours that the board of directors of the Company at its meeting held on 15 January 2014, has declared an interim dividend of Rs 11 per share for the year ending 31 March 2013. The bank has fixed 29 January 2014 as the payment date.
Maruti Suzuki India rose 1.41%. The company clarified before market hours regarding reports Maruti's parent may hike its stake in the company that the company is in no position to comment on the contents of the article in question as the matter has never been placed before the board of directors of the company.
Inflation based on the wholesale price index (WPI) eased to 6.16% in December 2013 as compared to 7.52% (provisional) for the previous month and 7.31% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 5.35% compared to a build-up rate of 4.84% in the corresponding period of the previous year. Index for October 2013 revised upwards to 7.24% as compared to earlier reported 7%.
Elsewhere in the region, New Zealand's NZX50 index rose 1%. South Korea's KOSPI added 0.37%. Taiwan's Taiex index added 0.64%. Malaysia's KLSE Composite lost 0.6%. Singapore's Straits Times index added 0.62%.
Powered by Capital Market - Live News
