Asia: Mixed despite China growth data

17-Jul-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 7:31 AM Print This Post

Asian markets were mixed yesterday Wednesday July 16, with investors unimpressed by data showing better than expected Chinese economic growth in the second quarter.

The dollar held on to gains made in New York after US Federal Reserve head Janet Yellen suggested interest rates could rise earlier than expected if the jobs market continues to pick up.

Tokyo dipped 0.10 per cent, or 15.86 points, to finish at 15,379.30, while Sydney rose 0.14 per cent to 5,518.9 and Seoul edged up 0.76 points to 2,013.48. In the meantime, Shanghai eased 0.15 per cent, or 3.08 points, to close at 2,067.28 points.

China’s National Bureau of Statistics said Wednesday the economy grew 7.5 per cent in April-June thanks largely to government stimulus measures aimed at tackling a slowdown in the world’s second-largest economy.

The figure beat the 7.4 per cent in the previous three months and exceeded the median forecast of 7.4 per cent in a survey of 17 economists by AFP.

“Generally speaking, China’s economy showed good momentum of stable and moderate growth in the first half-year,” said statistics bureau spokesman Sheng Laiyun.

HONGKONG: SHARES closed up 0.27 per cent yesterday after China released data showing its grew more than expected in the second quarter.
The Hang Seng Index added 63.32 points to 23,523.28 on turnover of HK$53.46 billion.
The National Bureau of Statistics said China’s economy grew 7.5 per cent in April-June thanks to Beijing’s stimulus measures put in place to fend off a slowdown.
China Mobile added 0.55 per cent to HK81.65, Tencent rose 0.4 per cent to HK$124.30, AIA was up 1.02 per cent at HK$39.45 and CCB Bank was unchanged at HK$5.58.

SINGAPORE: THE Straits Times Index (STI) ended 13.01 points, or 0.40 per cent, higher to 3,304.43 points yesterday.
The FTSE ST Mid Cap Index gained 0.39 per cent while the FTSE ST Small Cap Index added 0.06 per cent.
Of the actives, UOB advanced 0.76 per cent, SingTel gained 0.77 per cent, Global Logistic went up 1.48 per cent and DBS grew by 0.18 per cent.
The outperforming sector, FTSE ST Health Care grew by 1.67 per cent. Of its biggest stocks, Raffles Medical Group rose 0.52per cent and Biosensors International Group added 3.47 per cent.

KUALA LUMPUR: SHARE prices on Bursa Malaysia ended marginally higher yesterday, supported by gains on small-capitalised and finance stocks.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 1.84 points higher at 1,886.71, after moving between 1,882.52 and a new intra-day high of 1,895.02.
Dealers said better-than-expected growth data from China had helped lift sentiment.
Gainers led losers by 543 to 350, with 302 counters unchanged, 444 untraded and 25 suspended. Total volume rose to 2.40 billion units worth RM2.63 billion from Monday’s 2.22 billion units worth RM1.98 billion.
Among the top losers, United Plantations fell 40 sen to RM28.60 and TAHPS Group slipped 30 sen to RM9.20. Of the actives, Sumatec Resources lost one sen to 39.5 sen and MAS gained one sen to 23 sen.
Heavyweights Maybank rose one sen to RM10, while Tenaga slipped four sen to RM12.46.
The Finance Index increased 71.89 points to 17,571.29 and the Industrial Index added 13.25 points to 3,263.36. The Plantation Index lost 4.91 points to 9,083.53.
The FBM Emas Index increased 35.68 points to 13,161.07, the FBMT100 Index advanced 25.02 points to 12,752.97, the FBM ACE Index rose 94.25 points to 6,904.13 and the FBM 70 Index earned 76.86 points to 14,484.79.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives ended lower yesterday.
Spot month July 2014 fell 2.5 points to 1,886.5, August 2014 declined 1.5 points to 1,887, September 2014 decreased 2.0 points to 1,884 and December 2014 slipped 0.5 of a point to 1,885. Turnover rose to 3,403 lots from 1,772 on Monday, while open interest increased to 32,860 contracts from 31,647 previously.

In other markets:

Bangkok added 0.39 per cent, or 5.89 points, to 1,530.42. Import and export firm Berli Jucker soared 6.67 per cent to 52 baht, while Airports of Thailand rose 3.48 per cent to 208 baht.

Jakarta rose 0.85 per cent to 5,113.93. State miner Aneka Tambang gained 0.88 per cent to 1,140 rupiah, while telecommunications services company Telekomunikasi Indonesia lost 0.19 per cent to 2,650 rupiah.

Taipei slipped 0.88 per cent to 9.484.73. Taiwan Semiconductor Manufacturing Co was 1.88 per cent lower at T$130.5 while Hon Hai Precision lost 3.15 per cent to T$107.5.

Wellington was flat, edging down 1.15 points to 5,114.24. Air New Zealand was off 0.72 per cent at NZ$2.055 and Contact Energy slipped 1.83 per cent to NZ$5.35.

Mumbai gained 1.27 per cent to end at 25,549.72. Jaypee Infratech jumped 19.86 per cent to 34.70 rupee, while Financial Technologies India rose 9.99 per cent to 268.05 rupees.

Manila was closed because of Typhoon Rammasun.

VIETNAM: Vietnamese stocks rose for a third day in a row today on high liquidity as both buyers and sellers showed much conviction today, supported by easing tension on the East Sea.
Investors cheered on the news that China moved its Haiyang Shiyou oilrig out of the disputed waters near Paracel Islands.
The benchmark VN Index added 0.37 point or 0.06% to 589.68. Volume stayed high at to 138 million shares worth of VND2.244 trillion. Put-through trading contributed 4 million shares worth of VND177 billion.
We saw 1.6 million HSG shares changed hands at variety of prices from floor to the ceiling level, 1 million ASM shares changed hands at reference price.
The market breadth was positive with 108 gainers, 98 losers and 77 unchanged.
The VN30 rose 1.04 points or 0.16% to 637.13. Among 30 constituents 9 gained, 11 fell and 10 stood still.
On the Hanoi Stock Exchange, The HNX-Index, the measure of 360 stocks, lost 0.07 point, or 0.09%, to end at 80.16.
The traded volume was up over 70% from a day earlier to 72.5 million shares worth VND803 billion, up nearly 60% from yesterday.
The market breadth was positive on the northern exchange. Among index members, 101 stocks rose, 72 tumbled, 88 closed unmoved, and 133 were untraded.
The HNX 30 Index – the tracker of top 30 stocks calculated based on free float adjusted market capitalization – sank 0.66 points, or 0.41%, to end at 163.34.

EUROPE: Europe’s stock markets rebounded yesterday on the back of bright economic growth data in China and upbeat comments from the United States Federal Reserve, dealers said.
In midday deals, London’s FTSE 100 rallied 1.02 per cent to 6,778.72 points, as data showed Britain’s unemployment rate hit 6.5 per cent in the three months to May — the lowest point since late 2008.
Frankfurt’s DAX 30 meanwhile, appreciated by 1.37 per cent to end the day’s trading at 9,852.19 points and Paris’ CAC 40 jumped 1.46 per cent to close at 4,367.97 points.
Milan stocks surged 2.13 per cent, Madrid rose by 1.37 per cent, and Lisbon was up 2.66 per cent.
“European stock markets rose after upbeat comments on the US economy by Federal Reserve chairwoman Janet Yellen and better-than-expected gross domestic product figures out of China,” said analyst Daniel Sugarman at trading firm ETX Capital.

AMERICA: Major stock indexes rebounded Wednesday, finishing higher for the third time in four days and lifting the Dow Jones industrial average to its second record close this month.

Investors had lots of market-moving news to consider, including encouraging corporate earnings from Intel, a higher profit forecast from hospital operator HCA Holdings and a pickup in U.S. homebuilders’ confidence.

Trading appeared to get the biggest jolt from the latest batch of corporate deal news.

Investors drove Time Warner’s stock up 17 percent on news that Twenty-First Century Fox made a takeover bid for the media giant. Other deals involving Apple and IBM as well as slot machine maker International Game Technology also helped lift the market.

“It’s a continuation of what we’ve really been seeing this year, and it’s almost a record amount of (mergers and acquisitions) going on,” said David Chalupnik, head of equities at Nuveen Asset Management.

Momentum from Intel’s strong second-quarter earnings late Tuesday and news that Apple and IBM are teaming up to sell more iPhones and iPads to corporate customers helped lift major stock indexes in premarket trading.

The disclosure by Rupert Murdoch’s Twenty-First Century Fox that it had made a bid for Time Warner last month added to the modest rally.

Investors also got a dose of good news about housing. A key index of U.S. homebuilders’ confidence in the housing market surged to its highest level since January and indicated that builders are more optimistic about selling homes in the second half of the year.

The major stock indexes opened slightly higher, led by the tech-heavy Nasdaq, and remained in positive territory the rest of the day.

All told, the Standard & Poor’s 500 index gained 8.29 points, or 0.4 percent, to 1,981.57. The index remains near its most recent all-time high of 1,985.44 set July 3.

The Dow added 77.52 points, or 0.5 percent, to 17,138.20. That’s up 0.4 percent from its previous record high of 17,068.65 set July 3.

The Nasdaq composite rose 9.58 points, or 0.2 percent, to 4,425.97.

The three stock indexes are all up for the year.

Bond prices rose. The yield on the 10-year Treasury note dipped to 2.53 percent from 2.55 percent late Tuesday.

Cheap financing and a tough global economy have made acquisitions an attractive option for companies to expand their business.

The value of U.S. corporate deals has surged 80 percent to $1.02 trillion so far this year from $563 billion in the same period a year ago, according to Dealogic.

Fox’s bid for Time Warner aims to counter consolidation among TV distributors.

While Time Warner rejected Fox’s roughly $76 billion cash-and-stock offer, some financial analysts anticipate Fox will try again. Investors appeared to agree, sending Time Warner’s stock up $12.12 to $83.13 on Wednesday. Twenty-First Century Fox fell $2.19, or 6.2 percent, to $33.

Meanwhile, International Game Technology vaulted 9.2 percent on news the slot machine maker has agreed to be sold to Italian lottery operator Gtech for $4.7 billion in cash and stock. International Game Technology added $1.42 to $16.92.

“Historically a lot of M&A doesn’t work out, so it will be interesting to see how a lot of these deals play out three years from now,” Chalupnik said.

Apart from corporate deals, investors had their eye on earnings.

“We’ve seen some pretty good earnings reports across different sectors,” said Dave Roda, regional chief investment officer for Wells Fargo Private Bank in the Southeast.

Intel rose $2.94, or 9.3 percent, to $34.65. The chipmaker reported late Tuesday that earnings jumped 40 percent in the latest quarter, beating expectations, as companies picked up the pace of office PC replacement.

HCA Holdings jumped 10.5 percent after the hospital operator said its second-quarter financial results will be better than expected. It also raised its full-year outlook. The stock rose $5.78 to $60.99.

Among other stocks making news Wednesday:

— Bank of America fell 30 cents, or 1.9 percent, to $15.51 after reporting second quarter earnings that were hit by higher litigation expenses. The Charlotte, North Carolina-based bank earned 19 cents per share compared with 32 cents a year ago.

Benchmark Currency Rates

USD

1.3528 0.0098 1.7137 1.1135 0.9311 0.9366 0.1290

EUR

0.7392 0.0073 1.2668 0.8231 0.6882 0.6924 0.0954

JPY

101.6400 137.5000 174.1720 113.1690 94.6290 95.1860 13.1134

GBP

0.5835 0.7894 0.0057 0.6497 0.5433 0.5466 0.0753

CHF

0.8981 1.2149 0.0088 1.5391 0.8362 0.8412 0.1159

CAD

1.0740 1.4530 0.0106 1.8406 1.1959 1.0060 0.1386

AUD

1.0677 1.4443 0.0105 1.8296 1.1888 0.9941 0.1378

HKD

7.7507 10.4850 0.0763 13.2821 8.6302 7.2162 7.2594

Source: Bloomberg

 


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