The markets across Asia, excluding Hong Kong, ended in positive territory on increasing optimism about global economic recovery taking positive cues from Wall Street where the Dow ended at a 15-month high in the previous session. Profit taking at late trading however limited the gains as traders exercised caution ahead of earnings in the U.S.
In Japan, the benchmark Nikkei 225 Index rose 172.65 points, or 1.6%, to 10,908, while the broader Topix index of all First Section issues rose 14.99 points, or 1.6%, to 959.
On the economic front, data released by the Cabinet Office revealed that core machinery orders declined by a seasonally adjusted 11.3% month-over-month in November, following a 4.5% drop in the previous month. The data surprised economists who expected a bounce back in November with a marginal 0.2% gain. On an annual basis, core machinery orders plunged 20.5% during November, following a 21% contraction in the previous month. Economists expected the orders to decline 10.1% for the month, on annual basis.
In a separate report, the Bank of Japan revealed that an index measuring the prices of domestic corporate goods in the country rose 0.1% in December compared to the previous month. The index came in line with economists expectations, after having risen 0.1% in November. On annual basis, the domestic corporate goods index or CGPI declined 3.9% during December, in line with expectations, following 4.9% decline in the previous month.
Foreign institutional investors evinced fresh buying interest in blue-chip technology stocks in the Japanese market on optimism about better market performance from Japanese markets in the new year. As many as 189 stocks in the 225-stock benchmark Nikkei index ended in positive territory.
Among the major technology stocks, Sharp Corp. gained 3.15%, Sony Corp. rose 2.57%, and Panasonic Corp. surged up 6.10%.
Machinery stocks also ended higher. Okuma Corp. soared 13.64%, Chiyoda surged up 7.22%, Hitachi Construction Machinery advanced 1.64%, Sumitomo Heavy Industries gained 3.73% and Komatsu Limited gained 1.47%.
Trading companies also ended in positive territory. Mitsubishi Corp. climbed 4.35%, Mitsui & Co. rose 4.28%, Sumitomo Corp. gained 3.91% and Toyota Tsusho Corp. advanced 0.99%.
Among airline stocks, Japan Airlines surged up 28.57% as traders evinced buying interest for speculative purpose over this beleaguered airline company ahead of impending fear of delisting. As much as one-third of the total 3.2 billion listed shares, about 1.04 billion shares of JAL were traded in a single trading session. The other airline company, All Nippon Airways rose 1.74%.
Banks also ended in positive territory. Sumitomo Mitsui Financial climbed 3.32%, Resona Holdings rose 1.60%, Mizuho Financial surged up 5.68% and Mitsubishi UFJ Financial rose 2.09%.
In Australia, the benchmark S&P/ASX Index added 29.90 points, or 0.61% to close at 4,898, while the All-Ordinaries Index ended at 4,929, representing a gain of 29.30 points, or 0.60%.
On the economic front, data released by the Australian Bureau of Statistics revealed that the unemployment rate in the country declined by 0.1% in seasonally adjusted terms to 5.5% in December, fueling speculation that the Central Bank might continue to hike interest rates in its next meeting, if not earlier. According to the report, total employment in the country rose by 35,200 during December, following a rise of 31,200 in employment in the preceding month. Of the total 35,200 new jobs during December, 7,300 jobs were for full-time employment, while 27,900 jobs were created in part-time employment category.
Banking stocks advanced on positive economic data related to unemployment rate. ANZ Bank added 0.45%, Commonwealth Bank of Australia advanced 1.39%, National Australia Bank gained 0.86% and Westpac Banking rose 1.12%. Investment banker Macquarie Group was the major gainer in the session, having risen 3.70%.
Mining stocks also advanced on higher commodity prices in the international market. Rio Tinto reported a sharp increase in global iron-ore production for the fourth quarter. Also sales surged up in the quarter beating expectations. Following the news, the stock price of Rio Tinto climbed 2.63%. Among other mining and metal stocks, BHP Billiton advanced 1.53%, Fortescue Metals rose 3.33%, Gindalbie Metals added 1.25%, Iluka Resources surged up 4.57%, Minara Resources gained 1.23% and Murchison Metals increased 1.57%.
Mixed trading was witnessed among gold stocks. While Lihir Gold remained unchanged from previous close, Newcrest Mining ended in negative territory with a loss of 0.98%.
Oil stocks ended mixed. Woodside Petroleum slipped 0.33% and Santos shed 0.36%. However, Oil Search added 0.50% and Origin Energy edged up 0.23%.
Retail stocks also ended mixed. David Jones remained unchanged from previous close. JB Hi-Fi Ltd rose 1.82% and Woolworths Ltd advanced 0.79%. However, Harvey Norman fell 1.53% and Wesfarmers slipped 0.26%.
In Hong Kong, the Hang Seng Index ended in negative territory with a marginal loss of 31.65 points, or 0.15%, at 21,717, led by profit taking in late trading session, especially among the property stocks. The market, which had declined in the previous session dragged down on Chinese banks, opened in positive territory taking cues from other Asian markets and rose to as high as 21,989 in morning session. However, profit taking by traders, especially in property related stocks ahead of key data in the US and earnings from Intel, erased the early gains. Property stocks and banks ended in the negative territory.
In South Korea, the KOSPI Index ended in positive territory with a gain of 14.36 points, or 0.86%, at 1,686, taking cues from other markets in the region as well as positive closing on Wall Street in the previous session. Overcoming the anxiety over derailing of global recovery over China's tightening of monetary policy, the stocks advanced higher as foreign institutional investors evinced fresh buying interest in technology stocks and shipping stocks on optimism about sustaining recovery momentum in global economy.
The Indian market extended gains for the second successive day on Thursday, taking cues from positive trading in other Asian markets as well as the positive closing on Wall Street in the previous session. Mid and small cap companies led the gains on increasing confidence about the economy despite an uptick in the monthly inflation data released during the day. The benchmark Sensex finished at 17,585, with a gain of 75.07 points, or 0.43%, and the Nifty gained 0.50%, or 25.95 points to close at 5,260.
Among other major markets open for trading in the region, Taiwan's Weighted Index rose 93.42 points, or 1.14% to close at 8,299, Straits Times Index in Singapore added 21.14 points, or 0.73%, to close at 2,910, Indonesia's Jakarta Composite Index advanced 12.31 points, or 0.47% to close at 2,645, and China's Shanghai Composite Index jumped 42.89 points, or 1.35%, to close at 3,216.
No comments:
Post a Comment