Asia: Marts mixed as Tokyo surges ahead

19-Feb-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 8:24 AM Print This Post

Asian shares were mixed yesterday Tuesday February 18, but Tokyo surged 3.13 per cent after the Bank of Japan expanded its lending scheme to stimulate borrowing, while holding off on fresh easing measures.

Tokyo’s Nikkei-225 index soared 450.13 points to 14,843.24, while Seoul was flat, edging up 0.03 per cent, or 0.55 points, to 1,946.91 and Sydney gained 0.18 per cent, or 9.9 points, to 5,292.8.

Shanghai fell on profit-taking, losing 0.77 per cent, or 16.35 points, to end at 2,119.07.

“The (China) market may resume its uptrend in the coming sessions as there’s ample liquidity… we are unlikely to see an inflow of IPOs (initial public offerings) until March,” Capital Securities analyst Amy Lin told Dow Jones Newswires.

Investors were earlier gripped by worries over tight liquidity conditions as a flood of IPOs in January diverted funds from the secondary market.

All eyes were on the Bank of Japan governor Haruhiko Kuroda’s post-meeting comments for signs of future policy moves, after weak Japanese growth data for the final quarter of 2013 worsened fears about the impact of an April sales tax rise.

While the world’s No.3 economy grew 1.6 per cent over 2013, it slowed to 0.3 per cent in the October-December quarter,

HONGKONG: SHARES extended the previous day’s gains to close up 0.23 per cent yesterday.
The benchmark Hang Seng Index ended up 51.78 points to 22,587.72 on turnover of HK$55.4 billion.
Internet giant Tencent rose 0.78 per cent to HK$584.50, while HSBC was up 0.79 per cent to HK$83.35.
Semiconductor manufacturing firm SMIC fell 16.5 per cent to HK$0.67 and insurance firm ICBC also shed 0.41 per cent to HK$4.84.
In the meantime, China Mobile also suffered a drop of 0.54 per cent to HK$73.65.

SINGAPORE: THE Straits Times Index (STI) ended 1.5 points, or 0.05 per cent higher at 3070.78.
The FTSE ST Mid Cap Index gained 0.55 per cent while the FTSE ST Small Cap Index added 0.54 per cent.
Of the active stocks, SingTel fell 0.56 per cent, HanKore advanced 4.96 per cent, DBS lost 0.24 per cent, Biosensors added 14.37 per cent and JES gained 12.25 per cent.
The outperforming sector, FTSE ST Health Care, went up 6.49 per cent. Of its two biggest stocks, Raffles Medical Group shed 0.90 per cent and Biosensors International added 14.37 per cent.

KUALA LUMPUR: SHARE prices on Bursa Malaysia closed lower yesterday following the weaker performance on regional markets as the foreign fund exodus continued, dealers said.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 2.24 points to close at 1,825.24, after moving between 1,822.68 and 1,828.23 throughout the day.
The Finance Index lost 20.17 points to 16,554.61 and the Plantation Index fell 26.409 points to 8,584.15, while the Industrial Index increased 10.4 points to 3,117.08. The FBM Emas Index erased 9.689 points to 12,629.73 and the FBMT100 Index dropped 10.989 points to 12,301.44.
The FBM 70 ended 3.75 points better at 13,834.61 and the FBM ACE perked 19.15 points to 6,441.13.
Market breadth was negative as losers outnumbered gainers 454 to 393, while 307 counters were unchanged, 462 untraded and 26 others suspended.
Volume fell to 2.86 billion shares worth RM2.3 billion from 3.63 billion shares worth RM2.57 billion on Monday.
Among actives, Sumatec added half-a-sen to 33 sen, Scomi advanced 2.5 sen to 47.5 sen and Zelan gained 1.5 sen to 24 sen. Of the heavyweights, Maybank and CIMB were flat at RM9.75 and RM7.10, respectively.
Meanwhile, the FBM KLCI futures contracts on Bursa Malaysia Derivatives closed marginally lower as profit-taking weighed down the share market after a strong performance the previous day.
Spot month February 2014 slipped 1.5 points to 1,825.5, March 2014 dropped 2.5 points to 1,826.5, while June 2014 and September 2014 eased three points each to 1,823.5 and 1,821, respectively.
Turnover fell to 3,161 lots from Monday’s 7,359 lots while open interests decreased to 35,308 contracts from 38,121 contracts previously.

In other markets:

* Manila closed 0.42 per cent higher, gaining 26.15 points to 6,193.97. Top-traded Ayala Corp gained 2.78 per cent to 555 pesos while Ayala Land Inc rose 3.23 per cent to 27.20 pesos. * Wellington closed flat ahead of the earnings season, edging up 0.11 points to 4,895.10. Fletcher Building rose 0.63 to NZ$9.60 and Telecom Corp fell 1.24 per cent to NZ$2.39.

* Wellington closed flat ahead of the earnings season, edging up 0.11 points to 4,895.10. Fletcher Building rose 0.63 to NZ$9.60 and Telecom Corp fell 1.24 per cent to NZ$2.39. * Taipei rose 0.43 per cent, or 36.68 points, to 8,556.23. Hon Hai rose 0.36 per cent to T$83.8 while TSMC fell 0.46 per cent to T$108.0.

* Taipei rose 0.43 per cent, or 36.68 points, to 8,556.23. Hon Hai rose 0.36 per cent to T$83.8 while TSMC fell 0.46 per cent to T$108.0. * Bangkok lost 0.46 per cent to 1,326.21. Coal producer Banpu fell 2.83 per cent to 25.75 baht, while Bangkok Bank lost 0.28 per cent to 176.00 baht.

* Bangkok lost 0.46 per cent to 1,326.21. Coal producer Banpu fell 2.83 per cent to 25.75 baht, while Bangkok Bank lost 0.28 per cent to 176.00 baht. * Jakarta closed up 0.02 per cent at 4,556.19. State miner Aneka Tambang gained 2.42 per cent to 1,060 rupiah, while Bank Permata lost 0.41 per cent to 1,225 rupiah.

* Jakarta closed up 0.02 per cent at 4,556.19. State miner Aneka Tambang gained 2.42 per cent to 1,060 rupiah, while Bank Permata lost 0.41 per cent to 1,225 rupiah. * Mumbai rose 0.83 per cent, or 170.15 points, to 20,634.21. ABB India rose 12.80 per cent to 666.65 rupees share and Jindal Steel gained 6.93 per cent to 252.45 rupees a share. AFP

* Mumbai rose 0.83 per cent, or 170.15 points, to 20,634.21. ABB India rose 12.80 per cent to 666.65 rupees share and Jindal Steel gained 6.93 per cent to 252.45 rupees a share.

VIETNAM: Vietnamese stocks rose today as investors continued to pour money on the market on hopes of further rally after the central bank governor said Circular 02 will be amended, easing stresses for banks….
The benchmark VN Index rose 4.36 points or 0.76% to 574.56. Volume eased 2% to 160.3 million shares worth of VND2.464 trillion.
Put-through trading contributed 5.5 million shares worth of VND177.89 billion. We saw 1.96 million OGC shares changed hands at floor level of VND11,600 each; 0.62 million VNM shares changed hands at VND149,000, ceiling level.
The market breadth was positive with 172 gainers, 65 losers and 59 unchanged.
The VN30 closed up 6.8 points or 1.06% to 645.6. Among 30 constituents, 22 gained, 3 fell, 5 stood still.
Market opened in the green with 4 million shares changed hands. Trading was in caution at first after a correction yesterday. However, buyers were more encouraged entering the pennies and midcap stocks, focusing on property ones. Then, the sentiment improved and buying into blue chips boosted market higher in the afternoon session.
The top market caps were mixed, BID, MSN lost, GAS, VCB, VIC gained, VNM stood still.
Banking shares were mixed VCB, STB, MBB gained, but EIB, BID lost, CTG stood still.
Property stocks led the rally, NVT, PTL, KLBC, DIG, DIC, IJC, DXG were among ceiling gainers.
Broker shares were strong, SSI, HCM, AGR gained, only BSI stood still.
On the Hanoi Stock Exchange, the HNX rose 1.4 points or 1.76% to 81.04. Trading volume fell 9% to 94.4 million shares worth VND992.5 billion.
The breadth was positive with 162 gainers, 63 losers, 80 unchanged and the rest untraded.
The HNX30 jumped 3.66 points or 2.31% to 161.93.

EUROPE: European stocks markets mostly fell yesterday as investors reacted to regional economic data, including weaker business sentiment in Germany and lower British inflation.
Frankfurt’s DAX 30 dipped 0.17 per cent to 9,640.75 points and the Paris’ CAC 40 lost 0.40 per cent to stand at 4,317.97 points in midday deals.
London’s benchmark FTSE 100 rose 0.14 per cent to 6,745.33 compared with Monday’s closing value.
Milan’s FSTE Mib dropped 0.23 per cent to 20,413.34 points and Madrid’s IBEX 35 shed 0.85 per cent to 10,032.60.
In the meantime, the pan-European FTSEurofirst 300 had depreciated by 0.2 per cent to 1,333.94 at 1215GMT, just off its highest level in three weeks, and down for only the second time in 10 sessions.

AMERICA:  U.S. stocks closed mostly higher Tuesday as traders got back to work after a long holiday weekend.

It was a fairly quiet day for investors, who had relatively little news to react to.

Health care stocks rose more than the rest of the market after pharmaceutical company Actavis said it was buying rival Forest Laboratories for $25 billion in cash and stock.

Investors liked the deal, which is intended to make the companies more competitive in a rapidly changing industry and allow them to command higher prices from insurance companies. Actavis makes the generic versions of hyperactivity disorder medication Concerta and the cholesterol drug Lipitor, while Forest Labs makes the Alzheimer’s treatment Namenda.

The Dow Jones industrial average lost 23.99 points, or 0.2 percent, to 16,130.40. The Dow was dragged lower by Coca-Cola, which fell $1.46, or 4 percent, to $37.47.

Coke reported that its income and sales fell in the fourth quarter compared with the same period a year ago. The company said sales volume declined 1 percent in North America, its largest market.

The Standard & Poor’s 500 index rose 2.13 points, or 0.1 percent, to 1,840.76. The Nasdaq composite rose 28.76 points, or 0.7 percent, to 4,272.78.

Forest Labs and Actavis were among the biggest gainers in the S&P 500 index. Forest Labs soared $19.65, or 28 percent, to $91.04 and Actavis rose $9.59, or 5 percent, to $201.47.

Other drug makers also rose sharply. Gilead Sciences rose $2.60, or 3 percent, to $83.81 and Eli Lilly rose $1.05, or 2 percent, to $55.25.

The Forest Labs-Actavis deal is the latest in big-name, big-budget deals to be announced so far this year. Last week cable giant Comcast announced a deal to buy Time Warner Cable for $45 billion and Japan’s Suntory Holdings announced last month it was buying Beam, the maker of Jim Beam and Maker’s Mark whiskey, for $13.9 billion.

Investors should expect more large deals this year, said Mike Serio, regional chief investment officer at Wells Fargo Private Bank.

“This has been building up for three or four years now,” he said. “Companies have so much money on their balance sheets and there’s only so much you can do with it. You could increase your dividend. You could buy back stock. You could spend it on (business investments), or you can do deals.”

The stock market is extending its gain from last week, when the S&P 500 increased 2.3 percent. Investors liked what they heard from Federal Reserve Chair Janet Yellen, who said she planned to continue her predecessor’s market-friendly policies for the time being.

The market’s turnaround last week was especially notable given the rough start to the year. The S&P 500 has risen seven out of the last eight days.

“I would be very surprised if we don’t see the market move back to its highs very soon,” said Randy Frederick, a managing director at Charles Schwab.

Even with the market’s recent rise, both the Dow and the S&P 500 are still down slightly for 2014. The Dow has lost 2.7 percent, the S&P 500 just 0.4 percent.

Investors had two minor economic reports on Tuesday to work through. Both suggested that the bitter winter weather that has enveloped much of the nation the last two months has been holding back the U.S. economy.

The New York Federal Reserve’s Empire State survey showed that manufacturing slowed in the region in February far more than economists expected. Meanwhile, a survey of the housing market showed homebuilder confidence fell sharply in February, due to the severe weather.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.71 percent from 2.75 percent on Friday.

Gold rose $5.80, or 0.4 percent, to $1,324.40, continuing a weeklong rally. A report from the World Gold Council showed that Chinese demand for gold rose 32 percent in 2013 from 2012, a sign that overseas demand may not be as weak as originally thought.

Benchmark Currency Rates

USD EUR JPY GBP CHF CAD AUD HKD

USD

1.3765 0.0098 1.6682 1.1270 0.9130 0.8993 0.1290

EUR

0.7266 0.0071 1.2120 0.8188 0.6633 0.6534 0.0937

JPY

102.2400 140.7300 170.5580 115.2170 93.3390 91.9430 13.1835

GBP

0.5994 0.8251 0.0059 0.6756 0.5472 0.5392 0.0773

CHF

0.8873 1.2214 0.0087 1.4802 0.8100 0.7981 0.1144

CAD

1.0954 1.5078 0.0107 1.8273 1.2344 0.9849 0.1413

AUD

1.1120 1.5309 0.0109 1.8547 1.2534 1.0149 0.1434

HKD

7.7551 10.6730 0.0759 12.9373 8.7393 7.0801 6.9763

Source: Bloomberg

 


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