Asia Pacific share market ascended on Thursday, 15 October 2015, as risk sentiments buoyed up by growing confidence that that the Federal Reserve will hold off raising interest rates after disappointing U.S. economic data.
The weaker-than-expected U.S. retail sales and weak producer-price data has severely impacted the likelihood of a U.S. rate hike this year and that has taken as a boon to the region as a whole. Traders are now seeing the bright side of such economic angst that central banks, particularly the Fed, will be in no hurry to increase interest rates from record low levels.
Looking ahead, main focus will be Initial jobless claims and CPI in US data today. Empire Stat manufacturing index and Philly Fed survey will also be featured.
Among regional bourses
a Australia market snaps three days falling streak
Also Read
The Australian share market advanced for the first time in four consecutive sessions, as investors chased for bargain hunting on recently battered stocks, with energy, material and financial blue chip stocks being major gainers on firming prospect for Reserve Bank key rate easing. The benchmark S&P/ASX 200 index added 32.70 points, or 0.63%, to 5230 points, while the broader All Ordinaries index grew 35.20 points, or 0.67%, to 5265.60 points.
Shares of energy and resources companies were top gainers in the Sydney financial market. Gold miner Evolution Mining rocketed rose 7.4% to A$1.60, as gold prices hit a three-and-a-half-month peak overnight. Meanwhile, Newcrest Mining added 5.4% to A$15.34 and Kingsgate Consolidated closed up 1.5% to A$0.67. Among top miners, BHP Billiton grew 1.8% to A$25.12 while Rio Tinto rose 2.3% to A$54.25 after tipping a higher intensity demand for steel in Asia in the medium term. Iron-ore producer Fortescue Metals Group advanced 6% to A$2.29 after it unveiled a slight increase its quarterly ore production and a significantly lowered cost base. Among energy stocks, Australia's biggest oil producer Woodside Petroleum added 1% to A$31.17 despite unveiling its revenue slumped 45% in the September quarter. Santos, meanwhile, rose 3.1% to A$5.34 and Origin grew 0.6% to A$5.52. Oil Search also rose by 3.8% to A$7.41.
Consumer staples were also a market leader, buoyed by growing consumer confidence figures. Wesfarmers rallied 0.3% to A$40.34, while Woolworths gained 1.2% to A$26.94.
Domino's Pizza climbed 9.6% to A$46.62, on the top of yesterday's 6.9% gain, after announcement about buying of France's Pizza Sprint for the A$55 million.
Asciano fell the heaviest, down 7.6% to A$7.88, after the ACCC released a statement of issues about Brookfield's A$12 billion bid for the company.
The latest Australian Bureau of Statistics (ABS) figures showed that Australia's estimated seasonally adjusted unemployment rate for September 2015 remained at 6.2%, despite a fall of 0.1%age points (based on unrounded estimates) from August 2015.The seasonally adjusted labour force participation rate decreased 0.2%age points (based on unrounded estimates) to 64.9% in September 2015. The seasonally adjusted number of people unemployed decreased by 8,100 to 772,500 in September 2015.
Nikkei rises on hopes of further stimulus
The Japanese share market snapped a two-session losing streak, as investors chased for value buying on growing speculation that Japanese authorities will introduce additional stimulus to support the flagging economy. Total 32 out of 33 TSE first-section sector sub-indexes ended up, with Rubber Products, Pharmaceutical, Services, Other Products, Information & Communication, Pulp & Paper, Land Transportation, Wholesale Trade, and Securities & Commodities Futures issues being major gainers. The Nikkei Stock Average advanced 205.90 points, or 1.15%, to end at 18096.90 points, meanwhile the broader Topix index rose 1.35%, or 19.89 points, to 1490.72 at the close.
Japanese stocks commenced trading with back footing, due to fresh signs of a slower US economic recovery and a selloff on Wall Street overnight. But, buying of Japanese stocks kicked in, driven by hopes that the government and the Bank of Japan will take additional steps to foster economic activity and bolster stock markets.
Shares of major exporters and domestic-demand catering drug makers led the market higher. Tire maker Bridgestone Corp. rose 3.5%. Pharmaceutical firm Daiichi Sankyo Co. gained 5.1%.
Counters which came under pressure due to their heavy exposure to China, also recovered their footing. Fast Retailing, owner of clothing brand Uniqlo, advanced 0.3%, while steel producers JFE Holdings and Nippon Steel and Sumitomo Metal Corp bounced up 1.3% and 0.7%, respectively.
Sumitomo Mitsui Construction surged 24% on bottom fishing, following yesterday's 31% slump after a report that an apartment building in Yokohama was constructed based on falsified data.
Asahi Kasei Corp. dropped 14%, after saying its unit altered data in a project for Sumitomo Mitsui Construction and will bear the costs. The chemicals maker, which also operates a construction division, said its unit that did subcontracting work for Sumitomo Mitsui Construction didn't properly install foundation piles at an apartment building in Yokohama that has tilted. The subsidiary will bear all the costs of investigating and repairing the damage, Asahi Kasei said.
China market climbs to 8-week high
The Mainland China's stock market soared up to highest level in eight weeks amid growing hopes for further stimulus to support ailing economy, with telecom and technology stocks leading broader rally. The Shanghai Composite Index advanced 2.32%, or 75.63 points, to close at 3338.07 points, the highest level since 21 August 2015. The Shenzhen Composite Index, which tracks stocks on China's second exchange, ascended 3.03%, or 57.13 points, to 1941.28. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, grew 4.32%, or 9.53 points, to close at 2404.53.
The Communist Party of China Central Committee will hold a key meeting during Oct. 26-29 to deliberate on an economic and social development plan for China over the next five years. China's economic growth is expected to fall below 7% for the first time since the global financial crisis in the third quarter, putting pressure on policymakers to roll out more support measures as fears of a sharper slowdown spook investors.
Shares of telecom and technology companies were top gainers in the Beijing market, after the State Council said in a statement after a meeting chaired by Premier Li Keqiang on Wednesday that China pledged to spend more than 140 billion yuan on rural broadband by 2020, encouraging investment from local governments, telecommunication companies and private investors. The nation wants to stimulate e-commerce to help create startups and boost rural employment, the State Council said. Dr. Peng Telecom & Media Group Co. climbed 4.7% while Suning Commerce Group Co., China's biggest electronics retailer, rose 4.9%.
Anyuan Coal Industry rose by the daily maximum allowable of 10%, lifted by a disclosure in the miner's quarterly report that China's state investment firm and margin lender had become its major shareholders.
Hong Kong market surges 2%
Hong Kong stock market ascended, catching up gains in the Mainland A-share market which rose amid speculation that Chinese policy makers will introduce more measures to boost growth. The Hang Seng Index advanced 448.26 points, or 2%, to 22888.17 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 218.51 points, or 2.11%, to 10552.93 points. Turnover increased to HK$90.8 billion from HK$72.3 billion on Wednesday.
Shares of telecom companies fell after three incumbent telecom operators have agreed to inject tower assets into China Tower. China Unicom (00762) fell 2.8% to HK$10.54. China Mobile (00941) put on 2.7% to HK$93.7. China Telecom (00728) inched down 0.5% to HK$4.08.
Wal-Mart is the major client of Li & Fung (00494), plunged 4.3% to HK$6.03, after US retail giant Wal-Mart Stores issued profit warning on Wednesday.
Shares of solar counters continued their uptrend as mainland government plans to push for industry restructuring. SFC (01165) soared 17% to HK$3.08. Jun Yang Financial (00397) gained 3% to HK$0.201. GCL-Poly (03800) added 2.9% to HK$1.8.
Macau gaming counters were also higher. Galaxy Ent (00027) leaped 11.3% to HK$29.1 after it reported 3Q adjusted EBITDA growth of 13% quarter-on-quarter. Sands China (01928) climbed 6.6% to HK$13.6. MGM China (02282) jumped 10.3% to HK$30.65. Wynn Macau (01128) surged 7.4% to HK$11.9.
The volume of Hong Kong's re-exports of goods for August dropped 5.8% from a year earlier, while that of domestic exports fell 18.4%. Taken together, the volume of total exports and imports of goods declined 6% and 6.5%, according to the Census and Statistics Department. Comparing the first eight months of 2015 with the same period in 2014, the volume of Hong Kong's re-exports of goods dropped 1.8%, while that of domestic exports fell 13.2%. Taken together, the volume of total exports and imports of goods fell 2% and 2.3%.
Indian indices snap 3-day losing streak
Gains in stocks of public sector companies, auto shares and index heavyweights ITC and L&T led upmove for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 230.48 points or 0.86% at 27,010.14, as per the provisional closing data. The 50-unit CNX Nifty rose 71.60 points or 0.88% at 8,179.50, as per the provisional closing data. The Sensex provisionally settled above the psychological 27,000 level.
Tata Motors surged 8.03% at Rs 380.60, after the company announced that its UK based luxury car unit Jaguar Land Rover's (JLR) retail sales rose 3% to 47,634 vehicles in September 2015 over September 2014. Sales of the Jaguar brand jumped 22% to 10,394 vehicles in September 2015 over September 2014.
Hindustan Unilever (HUL) dropped 0.93% at Rs 790, with the stock extending losses registered yesterday, 14 October 2015, triggered by the company reporting flat bottom line after adjusting for exceptional items in Q2 September 2015. The stock had lost 1.85% to settle at Rs 797.40 yesterday, 14 October 2015.
Shares of Adani Enterprises jumped 14.26% at Rs 96.95 after Australia's environment ministry gave its go ahead to the company's Carmichael coal mine and rail project in Australia, subject to 36 strict conditions.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index grew 0.9% to 8601.52. South Korea's KOPSI added 1.2% to 2033.27. New Zealand's NZX50 climbed up 0.9% to 5775.71. Singapore's Straits Times index rose 1.1% at 3015.14. Indonesia's Jakarta Composite index was up 0.5% to 4507.19. Malaysia's KLCI rose 0.1% to 1713.25.
Powered by Capital Market - Live News
