Asia Pacific share market advanced on Tuesday, 19 August 2014, on optimism over progress in solving geopolitical conflicts from Ukraine to Gaza and Iraq. The MSCI Asia Pacific Index gained 0.7% to 148.99
The regional market benefited generally from optimism over progress in solving the Ukraine tensions after diplomatic efforts to find ways of cease-fire in Ukraine. Russia and Ukraine eventually agreed to find ways of cease fire in eastern Ukraine. German Foreign Minister Frank-Walter Steinmeier has brought together Ukraine's Pavlo Klimkin of Ukraine and Russia's Sergei Lavrov for a talk which would also be attended by France's Laurent Fabius. According to Steinmeier, the meeting is all about finding a roadmap towards a sustainable cease fire and a framework for effective border controls.
Israel and Palestinian militants agreed to extend their five-day truce by 24 hours. In Iraq, Iraqi and Kurdish forces, with the help of US airstrikes, recaptured the country's biggest dam which had given the militants control over power and vital water supplies.
But gain on the upside was limited as investors awaited a report on housing starts to gauge the strength of the world's biggest economy. The Federal Reserve will release tomorrow the minutes of its last gathering.
Traders are also awaiting for annual Jackson Hole, Wyoming, summit in the US, which brings together business heads and central bankers from around the world. Federal Reserve chair Janet Yellen and her European counterpart Mario Draghi are both scheduled to address delegates late in the week.
Also Read
Among Asian bourses
Nikkei extends gain for seventh straight session
Japanese share market advanced for a seventh straight on optimism that there was progress in solving the Ukraine tensions. The benchmark Nikkei 225 index advanced 4127.19 points to close at 15449.79, while the Topix index added 9.03 points to 1280.29.
Shares of real-estate developers outperformed, helped by media report that MGM Resorts International has scouted Tokyo's sprawling fish market in Tsukiji as a potential site for the casino resort it wants to build in the area. The sprawling site is centrally located near the Ginza shopping district. Mitsui Fudosan gained 2.1%, Mitsubishi Estate rose 2.5%, and Sumitomo Realty & Development closed up 1.7% in response.
Skymark Airlines closed at its daily upper limit of 230 yen, up 28%, following a Nikkei report that Malaysia-based AirAsia is considering aid options for Skymark and may seek control of the Japanese carrier. Both Skymark and AirAsia denied the report.
Kansai Electric climbed 3.6% to 1,012.5 yen on media reports that the utility will apply for a power-rate increase as early as this autumn due to a delay in nuclear restarts and higher fuel costs. The company denied the report.
Daikin added 4.2% to 6,872 yen and Terumo gained 3.5% to 2,596 yen on brokerage houses rating upgrade. Credit Suisse upgraded its rating on Daikin to outperform from neutral and boosting the price target 33% to 8,000 yen. The investment bank also raised its rating on Terumo Corp, a maker of medical equipment, to outperform. Terumo gained 3.5% to 2,596 yen.
Australia stocks rise for the fourth day in a row
Australian share market closed higher on tracking positive offshore cues and better than expected corporate earnings reports. Most of the sectors ended higher, with shares of mining, industrial and consumer goods companies being the biggest winner. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose by 0.7% to 5623.80 points and 5618.40 points, respectively.
The consumer goods and retailers stocks advanced after the RBA minutes noted there had been a rebound in consumer sentiment to be at above-average levels in recent weeks. ANZ-Roy Morgan Australian Consumer Confidence broadly echoed the central bank's finding, as the index level of 112.5 in the week ending August 17. Woolworths shares jumped 1% to A$36.84, Harvey Norman rose 1.3% to A$3.20 and GUD Holdings added 3.3% to A$7.61.
Materials and resources stocks closed higher, with resources giant BHP Billiton adding 1.4% to A$39.68 after reporting a net full-year profit of $US13.8 billion, up 23.2%. Rival Rio Tinto jumped 1.6% to A$66.40. Fortescue Metals rose 2.2% to A$4.62. Steel and mining group Arrium jumped 11.92% to A$0.845 after it lifted its full year profit by 83%.
QBE was in a trading halt after it said it would sell off or float businesses in three continents, including Australia, as it works to get back on track after another disappointing profit slide. QBE last traded at A$10.71
Australian dollar rose against greenback and other major currencies on Tuesday after the Reserve Bank of Australia indicated in its minutes it will hold fire on rates despite uncertainty over the growth outlook. The minutes flagged a significant degree of uncertainty about the growth forecasts and fall in bulk commodity prices in the June quarter, but the Reserve Bank also signalled that the already lengthy period of rate stability will continue.
China market rises to fresh 8-month highs
Mainland China share market closed at fresh eight-month high after fluctuating in and out of the boundary line. The gain was led by Chinese media companies after President Xi Jinping comment to build a few groups into influential content providers. The benchmark Shanghai Composite rose 0.26% to close at 2245.33, the highest level since 5 December 2013. Turnover increased to 155.44 billion yuan from yesterday's 141.49 billion yuan.
The Chinese market has risen about 13% from this year's low as monetary easing, accelerated government spending and gains in manufacturing spur speculation the nation will meet its 7.5% economic expansion target.
Shares of Chinese media companies advanced the most in Shanghai after President Xi Jinping comment to create several media groups that are strong, influential and credible while promoting the integration of new and traditional media. The government plans to revamp state-controlled media firms as part of a broader campaign to reform government companies and reduce corruption. People.cn Co, the online unit of the Communist Party's newspaper, Shanghai Xinhua Media Co and Jiang Daily Media Group Co. all jumped by the 10% daily limit.
Hang Seng Index rises to 2008 high
Hong Kong share market closed higher on the back of strong buying in last trading hour, amid signs geopolitical tensions are easing. The gain was led by China Resources Land after the developer agreed to buy assets from its parent, while Galaxy Entertainment Group surged after the casino operator beat earnings estimates. The Hang Seng Index climbed 0.7%, or 167.49 points, to 25122.95, a highest level since 21 May 2008. Market turnover stood at HK$72.37 billion, up from HK$69.7 billion on Monday.
China Resources Land soared 7.6% to HK$18.18 after reporting strong earnings and saying it agreed to buy a Shenzhen property project from a unit of its state-owned parent. It was the top blue chip performer.
Kunlun Energy dipped 2.6% to HK$12.78 on reports that it has closed two plants over the past month on rising costs and slowing demand. It was the worst blue chip loser.
Shares of Macau gaming players advanced, led by Galaxy Ent, up 3.4% to HK$61.9, after it reported interim net rose 29% to HK$6 billion. Sands China (01928) added 2% to HK$54.25. Both Wynn Macau (01128) and MGM China (02282) rose 3% to HK$31.8 and HK$26.6. Melco Crown (06883) and SJM (00880) put on 2% to HK$76.75 and HK$20.1.
China Medical System Holdings jumped 8.8% to HK$10.94 after the drugmaker reported first-half net income increased to 412.7 million yuan ($67 million) from 314.7 million yuan a year earlier.
Cnooc shares rose 1.1% to HK$15.40 on brokerage houses rating upgrade. Credit Suisse raised its rating on the stock to neutral from underperform after the energy company's parent announced plans to cut costs and improve earnings that exceeded analyst estimates.
Sensex, Nifty break records
Indian stock market advanced for sixth straight session on robust buying by foreign funds coupled with firming trend overseas. The 30-share Sensex ended the day 29.71 points or 0.11% higher at fresh closing peak of 26,420.67. The broader Nifty rose 0.56% to 7,918.55, surpassing their previous all-time high hit on August 18.
Realty stocks extended recent gains triggered by the latest data showing inflation based on wholesale price index (WPI) eased in July.
Auto stocks rose across the board. Tata Motors, Maruti Suzuki India and Mahindra & Mahindra (M&M) scaled record high. Force Motors galloped to 52-week high. Airline stocks rose as crude oil prices fell.
Sesa Sterlite rose on reports that the Goa state government will allot at least 27 iron ore mining leases from 30 September to 10 October this year.
Shares of PSU OMCs extended Monday's gains as Brent crude oil futures stayed near 14-month low, with BPCL hitting record high. Cement stocks were in demand with ACC hitting record high. Among pharma stocks, Lupin scaled record high. Among FMCG stocks, shares of biscuits major Britannia Industries extended its recent strong gains.
Elsewhere in the Asia Pacific region-- South Korea's KOSPI index jumped 0.88% to 2071.14. Taiwan's Taiex index gained 1.12% to 9243.781. Malaysia's KLCI rose 0.56% to 1872.16. New Zealand's NZX50 added 0.85% to 5114.21. Singapore's Straits Times index rose 0.11% to 3316.43. Indonesia's Jakarta Composite index rose 0.16% to 5165.17.
Powered by Capital Market - Live News
