Asia Pacific share market jumped higher on Thursday, 10 November 2016, catching rally on the Wall Street overnight, as investors looked beyond the shock of Donald Trump's surprise victory to focus more on his plans to cut taxes and stimulate the economy.
Trump's stunning upset roiled global markets on Wednesday, sending investors scrambling for safe-haven assets such as gold, sovereign bonds, and the Japanese yen. Overnight, though, riskier assets staged a sharp reversal as traders reassessed the implications of a Trump presidency, with many seeing it ushering in higher economic growth.
Wall Street stocks surged overnight following Trump's upset win over Hillary Clinton, in anticipation of favourable policies. The Dow Jones Industrial Average jumped 1.4% to 18,589.69. European stocks also closed higher on Wednesday.
Among Asian bourses
Australia Stocks rebound on bottom fishing
Australian share market rebounded from four-month low, adding ~A$50 billion in value as investors put a positive spin on Donald Trump's surprise victory in the US presidential election. All sectors on the ASX closed sharply higher, exception being bullion and realty issues, with materials and resources, energy, banks, healthcare sectors registering the biggest gains. At the closing bell, the benchmark S&P/ASX 200 index spurted 172.40 points, or 3.34%, to 5,328.80, while the broader All Ordinaries index rebounded 170.60 points, or 3.26%, to 5,408.90.
Shares of major miners and energy companies surged on tracking strength in iron ore and crude oil prices. The iron ore rocketed to its highest level since January last year, prompting BHP Billiton to soar 8.2%, closely followed by Rio Tinto, up 8.2% and Fortescue Metals, up 10.7%. Among energy stocks, Woodside Petroleum rose 3%, Oil Search added 2.8% and Santos was 4.1% higher.
The major banks were also stronger, on the belief that Trump spending on infrastructure, tax cuts and less red tap will be good for business. Westpac was up 4.3%, National Australia Bank 3.5%, Australia & New Zealand Banking4.2%, and Commonwealth Bank of Australia 3.3%.
Shares of gold producers fell, on tracking fall in bullion prices. The price of bullion dropped back below $1300 an ounce, after soaring as much as 5.2% higher on Tuesday. St Barbara was the worst performers, closing 8.8% lower. Newcrest Mining, Australia's largest producer was off 4.4%.
Nikkei rebound strongly after US election, softer yen
The Japan share market jumped higher, adding billions to market capitalisation, after diving the previous day on Donald Trump's shock win in the US presidential election. all industry categories closed in positive territory on the main section, led by nsurance, securities and banking-linked stocks. The 225-issue Nikkei Stock Average surged 1,092.88 points, or 6.72%, from Wednesday to close the day at 17,344.42, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange jumped 75.19 points, or 5.78%, to end at 1,376.35.
Banking issues gained, mirroring advances made on Wall Street overnight on hopes for eased regulations. Mitsubishi UFJ Financial Group leapt 11.2% to 557 yen and Sumitomo Mitsui Financial Group jumped 8.6% to 3,643 yen. Nomura Holdings Inc. surged 11%.
Export related stocks jumped on tracking yen depreciation against US dollar, with Komatsu surging 10.7% to 2,413 yen and Honda Motor accelerating 9% to 2,980 yen. The dollar was trading at 105.88 yen on Thursday, sharply up from the 102-yen range seen when the Tokyo market closed with heavy losses on Wednesday.
China Stocks gain to10-months high
Mainland China stock market jumped to fresh 10-months high, joining global market rally, in the wake of Donald Trump's surprise victory in the U.S. presidential election. All major sectors gained, led by financial. The benchmark Shanghai Composite Index grew 1.37% to close at 3,171.28 points. The CSI 300 index added 1.12% to close at 3,390.61 points.
Chinese property developer giant Vanke traded up 1% on reports China Evergrande Group, a real estate conglomerate, has further raised its stake in Vanke to 8.3%.
China's vehicle sales in October rose 18.7% y/y to 2.65 million units, China Association of Automobile Manufacturers (CAAM) said in a statement on its website Thursday following a briefing. The October growth rate was below the 26.1% y/y posted in September. Still, vehicle sales in the first ten months climbed 13.8% y/y to 22.02 million units, compared with an increase of only 1.5% y/y for the same period of last year, CAAM said.
Hong Kong Stocks rebound from three-month low
The Hong Kong stock market jumped to 3-months high, on tracking cues from the global market rally, as investors looked beyond the shock of Donald Trump's surprise victory to focus more on his plans to cut taxes and stimulate the economy. The Hang Seng Index rebounded 1.9% or 423.92 points to 22839.11, while the Hang Seng China Enterprises Index added 1.78% or 167.19 points to 9545.85. Turnover decreased significantly to HK$71.9 billion from HK$104 billion on Wednesday.
Energy stocks jumped as the price of oil climbed back above $45 a barrel. China Shenhua Energy climbed 1.9% in Hong Kong, while Cnooc added 2.7%.
It was reported that BOC (03988) is considering spinning off its subsidiary BOCI for separate listing. BOC rose 1.8% to HK$3.46. BOCHK (02388) climbed 4.2% to HK$27.6. It was the top blue-chip gainer today.
Hang Seng Indexes Company will announce its quarter review tomorrow (11 November) after market close. Societe Generale has tipped that Li & Fung's (00494) seat may be taken over by WH Group (00288). Li & Fung softened 0.8% to HK$3.61. WH Group jumped 4% to HK$6.54. HSBC (00005) put on 3.5% to HK$60. Standard Chartered (02888) soared 5.4% to HK$63.85.
Indian market reverses yesterday slide
Indian benchmark indices logged strong gains on buoyant global cues, reversing yesterday's slide. The barometer index, the S&P BSE Sensex, rose 265.15 points or 0.97% to settle at 27,517.68. The Nifty 50 index rose 93.75 points or 1.11% to settle at 8,525.75. Market sentiment got a boost after global investors turned hopeful about generous tax cuts and higher infrastructure and defence spending in the US following Donald Trump's election victory.
PSU bank stocks logged sharp gains. Private bank stocks rose. Metal shares rose as copper price edged higher in the global commodities markets. Telecom stocks were in demand.
Bank of India surged 12.97% after the bank reported net profit of Rs 126.84 crore in Q2 September 2016 compared with net loss of Rs 1126.24 crore in Q2 September 2015. Bank of India's total income rose 1.33% to Rs 11469.11 crore in Q2 September 2016 over Q2 September 2015. The bank said that the figures of Q2 September 2016 are not comparable with those of Q2 September 2015.
Cipla gained 6.85%, with the stock shrugging off the company's announcement of weak Q2 results. Cipla said that consolidated net profit dropped 34.75% to Rs 354.34 crore on 8.39% rise in total income to Rs 3778.25 crore in Q2 September 2016 over Q2 September 2015. The company said the results are not strictly comparable to Q2 September 2015 results. The Q2 September 2016 earnings include revenue from InvaGen Pharmaceuticals, a US-based company that Cipla acquired in February this year, and as Q2 September 2015 results included profit from Esomeprazole.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 increased 1% to 6733.72. Indonesia's Jakarta Composite index added 0.7% to 5450.31. Taiwan's Taiex climbed 2.3% to 9152.18. South Korea's KOSPI index jumped 2.3% to 2002.60. Malaysia's KLCI was up 0.3% to 1652.74. Singapore's Straits Times index added 1.6% to 2834.09.
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