Asia Pacific Market: Stocks get a lift from China trade data

Asia Pacific bellwether stocks wrapped Thursday's trading on a positive note after data on China's December exports came better than expectation. But move on upside were limited ahead of European Central Bank and Bank of England meetings and as US earnings season gets underway.

China's General Administration of Customs said that country trade surplus rose sharply in December to $31.6 billion from $19.6 billion in November on unexpectedly strong exports. The country's exports jumped 14.1% on the year to US$199.2 billion in December, higher than November's 2.9% rise. Imports rose 6% to US$167.6 billion. Concerns about the Chinese economic outlook started to ease, as the gains were stronger than initial market forecasts. Last year, Chinese exports expanded 7.9% to US$2.05 trillion, while imports increased 4.3% to US$1.82 trillion. The nation's foreign trade rose 6.2% in 2012, short of the official target of 10%.

 

The Tokyo share market rallied for second straight day, led by Japanese exporters shares as the Yen neared a 2 1/2 year-low against greenback after Prime Minister Shinzo Abe urged the central bank to double its inflation target. Nikkei Stock Average advanced 74.07 points from 10,578.57 to finish at 10,652.64, while the broader Topix index escalated 9.97 points to finish at 889.02.

The Japanese Yen dropped against the US dollar, moving back towards a recent 2-1/2 year low, on renewed expectations of raise in inflation goal and easier policy from the Bank of Japan. The dollar strengthened to the lower 88 yen level, while the euro rose to 115 yen level.

The Bank of Japan will consider easing monetary policy again this month as it eyes doubling its inflation target, as weakness in the economy threatens to delay the country in getting out of deflation. Any easing will likely take the form of another increase in the BOJ's 101 trillion yen asset buying and lending program, mostly for purchases of government bonds and treasury discount bills. Prime Minister Shinzo Abe urged Bank of Japan Governor Masaaki Shirakawa to double the central bank's inflation goal. Shirakawa said yesterday the BOJ was in close cooperation with the government, raising speculation policy makers will boost stimulus when they meet Jan. 21-22.

Investors found buying impetus on exporters issues as the yen's latest multi-year low. With the dollar firmly over the 88 yen mark, investors bought exporter shares on hopes prolonged yen weakness would boost the sector's competitiveness. Honda Motor Co, which gets about 81% of its sales outside Japan, advanced 2.5% to 3,330 yen. Mazda Motor Corp rose 10.2% to 195 yen. Sony Corp advanced 3.4% to 968 yen. Bridgestone Corp added 1.9% to 2,363 yen. Izutsuya Co jumped 43.6% to 89 yen after the department-store operator raised its profit forecast.

China-exposed names rose after a better-than-expected China December trade surplus. Komatsu, the maker of construction equipment that gets about 14% of sales from China, climbed 1.6% to 2,294 yen. Hitachi Construction Machinery rose 0.8% to 1,862 yen

Isuzu Motors rallied 3.8% to 545 yen after confirming that it plans to rekindle a tie-up with General Motors Co with the two in talks to jointly develop a new pickup truck. Their combined global market share would total some 25%, according to a Nikkei news report.

Australian share market finished modest higher, thanks to better than expected Chinese data that helped propel the share market today. Financials, property trusts, consumer-staples and consumer-discretionary stocks contributed the most to upswing. The market largely shrugged off data released by the Bureau of Statistics that showed a 2.9% rise in building approvals for November in seasonally adjusted terms, short of market expectations. The benchmark S&P/ASX200 advanced 14.90 points to 4723, while the All Ordinaries Index finished 15.10 points up from prior day closure to 4745.20.

The big four banks all registered gains in Aussie market today. ANZ closed 0.5% higher at a$25.15, while Commonwealth Bank edged up to a$61.61 and NAB to A$25.43. The National Australia Bank finished the day 8 cents up at A$25.43. Materials and resources were mixed amid doubts over the sustainability of an 80% rise in spot iron ore since September. The spot iron ore price ended unchanged overnight at US$158.50 a tonne. BHP Billiton (BHP) ended down 0.5% to A$37.41 while Rio Tinto was up 0.4% to A$67.10. Shares in Fortescue Metals Group added 2.3% to A$4.85.

New Zealand shares registered modest gain today, pushing the NZX 50 Index 15.54 points, or 0.4%, higher at 4119.08, its highest level since November 2008, as expectations of a pickup in building activity lifted companies such as Fletcher Building, Steel & Tube Holdings and Cavalier. PGG Wrightson rose to a 17-month high.

Fletcher Building, the biggest company on the NZX, gained 2.6% to NZ$8.67, the highest since June last year, amid signs of life returning in the Australian home building market. Figures today showed building approvals across the Tasman in November were up 13.2% from a year earlier. Steel & Tube, which sells steel building materials, gained 0.8% to NZ$2.43, Cavalier, the carpet maker, raised 1.8% to NZ$1.68. Fast-food chain operator Restaurant Brands raised 1.8% to NZ$2.85,

South Korea blue chips ended solid higher, sending the benchmark KOSPI Composite index 0.8% up at 2,006.80. Exporters were leading charge with Samsung Electronics Inc gained 2% and Hyundai Motor Co climbed 1%.

Mainland China share market closed volatile trading modest higher on Thursday, January 10, 2013, with shares in tech, banks, realty, and industrials heavyweights led rally on reports that China December exports were far larger than expected. The Benchmark Shanghai Composite index advanced 8.32 points from 2,275.34 to finish at 2,283.66.

Chinese solar companies stocks jumped after polysilicon prices rebounded. Polysilicon prices rose 3.4% to an average $15.90/kg this week, compared with a 0.2% gain last week, according to PV Insights. Xi'An Longi Silcon Materials Co locked 10% upper circuit at 9.24 yuan. EGing Photovoltaic Technology Co. jumped 10% daily limit to 10.45 yuan. Hareon Solar Technology Co advanced 6.9% to 6.49 yuan.

China shipping companies stocks advanced on speculation rising exports will boost demand for marine transport. China Cosco Holdings Co, the world's largest operator of dry-bulk ships, gained 2.5% to 4.58 yuan. Cosco Shipping Co, a unit of the biggest shipper, jumped 2.5% to 4.15 yuan. China Shipping Development Co., a unit of the second- biggest sea-cargo group, added 1.7% to 4.76 yuan.

Hong Kong market climbed notably after Chinese officials reported China's exports and imports grew more than estimated in December, The benchmark Hang Seng Index was up 135.84 points from 23,218.48 to finish at 23,354.31, while Hang Seng China Enterprises Index escalated 113.70 points to 11,931.47.

34 out of 50 Hang Seng blue chips advanced today. Aluminum Corporation Of China was largest gainer in the index, adding 6.5% to HK$4.07 on back of upbeat result prospect of Alcoa and upbeat China exports data, while Hengan International Group Co was down 2.2% to HK$74.05, making it worst performer blue-chip. Market heavyweights were up. HSBC Holdings advanced 0.6% to HK$83.15 while China Mobile added 1.3% to HK$89.85.

Hong Kong-listed banks and property firms sensitive to perceptions about the health of the Chinese economy gained notably after better than expected data on China's December trade data and new loan, and upbeat results of city land sale. Among realty stocks, New World Development Co was up 5.4% to HK$13.64 and Wharf Holdings added 1.3% to HK$63.90. Among banks shares, Bank of China improved by 1.7% to HK$3.65, Industrial and Commercial Bank of China 1.1% to HK$5.75, and Bank of Communications Co 0.5% to HK$6.11.

Singapore's main index extended its gains for a second straight day, as stronger-than-expected Chinese trade data buoyed investor confidence. The benchmark Straits Times Index was up 0.2% at 3,226.25. CapitaLand, which develops properties in Singapore and China, climbed 2.1% to S$3.94, more than a two-year high, on optimism that property demand will remain strong in its key markets despite government efforts to curb rising home prices.

Bucking the uptrend, shares in Indonesian market declined today, dragging the benchmark Jakarta Composite index 1% down at 4,317.37, as heavy selloff in automakers and banks after the government imposed higher down payment requirements for auto purchases. Indonesia imposed higher down payment requirements for auto purchases to decelerate the growth of consumer loans in the G20 economy. Consumer loans grew 18.9% in October, slowing from 19.9% in the previous month, according to data from Bank Indonesia.

Malaysian shares closed mostly lower, despite the advance at most global markets on better than expected economic data from China, weighing the benchmark KLCI 5.36 points lower to 1,684.57. Losers led gainers by 387 to 310, while 341 counters traded unchanged.

Indian shares closed mixed today, with the Sensex provisionally fell 0.02% and the Nifty lost 0.05%. Infosys and other software services exporters fell ahead of their upcoming earnings results, while cement maker fell on near-term outlook concerns. However, oil stocks gained after oil ministry officials told reporters a long-awaited proposal to raise fuel prices would be submitted to the federal cabinet.

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