Asia Roundup: Markets rise on Yellen remarks

13-Feb-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 7:45 AM Print This Post

Asian markets climbed yesterday Wednesday February 12 after the new United States Federal Reserve chief said she will stick with its stimulus policy, while lawmakers agreed to raise the debt ceiling and avert another stand-off.

Wall Street rallied for a fourth straight session after Janet Yellen told Congress she expects to continue predecessor Ben Bernanke’s plan to wind down its bond-buying gradually and keep interest rates low until the jobs market improves significantly.

Tokyo climbed 0.56 per cent, or 81.72 points, to 14,800.06, Sydney jumped 1.06 per cent, or 55.6 points, to close at 5,310.1 and Seoul added 0.20 per cent, or 3.78 points, to 1,935.84.

HONGKONG: SHARES rallied yesterday following better-than-expected Chinese trade data and a pledge by the new United States Federal Reserve chief to stick to its monetary policy.
Hong Kong’s benchmark Hang Seng Index added 1.47 per cent, or 322.81 points, to end at 22,285.79, on turnover of HK$75.98 billion.
Internet giant Tencent rose 1.32 per cent to HK$537.00, HSBC added 1.76 per cent to HK$81.10, China Mobile was 1.07 per cent lower at HK$73.90, CNOOC was 1.89 per cent higher at HK$12.92 and Cathay Pacific Airways gained 0.89 per cent to HK$15.88.

SINGAPORE: THE Straits Times Index ended 6.35 points or 0.21 per cent higher at 3035.45.
The FTSE ST Mid Cap Index declined 0.04 per cent while the FTSE ST Small Cap Index gained 0.21 per cent.
Among top active stocks, DBS added 0.18 per cent, OCBC slipped 0.21 per cent, SingTel shed 0.28 per cent, Keppel Corp appreciated 0.38 per cent and GLP rose 1.08 per cent.
The outperforming sector, FTSE ST Utilities Index, advanced 2.40 per cent. Its two biggest stocks, Hyflux gained 0.84 per cent and HanKore appreciated 0.91 per cent.

KUALA LUMPUR: THE FTSE Bursa Malaysia KLCI (FBM KLCI) closed slightly higher yesterday on late buying interest in plantation stocks, dealers said.
The FBM KLCI rose by 1.47 points to close at 1,825.64 points after moving between 1,821.75 and 1,826.73 throughout the day.
Plantation counters, Kuala Lumpur Kepong and Genting Plantations, were top gainers, adding 42 sen and 40 sen each to RM24.22 and RM10.60 respectively.
“The gains, however, were limited by losses in the finance stocks such as Hong Leong Capital Bhd and Public Bank,” he said.
The Finance Index dipped 35.92 points to 16,628.42.
The Plantation Index jumped 84.88 points to 8,601.59 points and the Industrial Index increased 14.23 points to 3,103.77 points. The FBM Emas Index rose 17.36 points to 12,610.5, the FBMT100 Index garnered 15.1 points to 12,305.94, the FBM 70 Index advanced 37.24 points 13,846.56 and the FBM ACE Index chalked up 124.5 points to 6,257.11 points.
Gainers thumped losers by 421 to 398, while 320 counters were unchanged, 467 untraded and 18 others suspended.
Among the heavyweights, Maybank fell two sen to RM9.80 and CIMB lost four sen to RM7.19.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives also closed higher yesterday.
Spot month February 2014 rose three points to 1,823 points, March 2014 gained five points to 1,824.5, June 2014 rose four points to 1,821, and September 2014 added 3.5 points to 1,819 points.
Turnover dipped to 4,569 lots from Tuesday’s 5,197, while open interest declined to 35,944 contracts from 41,872 contracts previously.

In other markets:

* Taipei added 0.95 per cent, or 80.31 points, to 8,510.87. Smartphone maker HTC fell 0.38 per cent to T$129.5 while Taiwan Semiconductor Manufacturing Co rose 0.48 per cent to T$105.0.

* Wellington gained 0.43 per cent, or 21.09 points, to end at 4,869.97. Trade Me was up 1.85 per cent at NZ$3.86, Fletcher Building rose 2.84 per cent to NZ$9.41 and Air New Zealand was down 0.63 per cent at NZ$1.695.

* Manila rose 0.10 per cent, or 6.28 points, to 6,112.31. SM Investments rose 0.36 per cent to 703.00 pesos, Megaworld added 3.46 per cent to 3.89 pesos and Metropolitan Bank gained 1.39 per cent to 80.00 pesos.

* Bangkok added 1.37 per cent, or 17.81 points, to 1,314.06. Siam Cement gained 1.45 per cent to 420.00 baht, while supermarket operator Big C Supercenter rose 4.76 per cent to 187.00 baht.

* Jakarta closed up 0.58 per cent, or 26.10 points, at 4,496.29. Carmaker Astra International rose 1.14 per cent to 6,650 rupiah, while state miner Aneka Tambang fell 0.48 per cent 1,035 rupiah.

* Mumbai rose 0.42 per cent, or 85.12 points, to end at 20,448.49 points. Gold based financier Muthoot Finance rose 9.78 per cent to 175.10 rupees a share while Crompton Greaves rose 5.46 per cent to 125.50 rupees.

VIETNAM: Vietnamese stocks ended higher just after a single day correction as investors jumped in on hopes of steady recovery and on impacts of global market rallies.
The benchmark VN Index rose 10.35 points or 1.87% to 564.25. Volume fell 28% to 126 million shares worth of VND2.148 trillion. Put-through trading contributed 5.2 million shares worth of VND255.87 billion.
The market breadth turned massively positive with 193 gainers, 51 losers and 48 unchanged.
The VN30 added 10.39 points or 1.66% to 637.79. Among 30 constituents, 29 gained, 0 fell, 1 stood still.
Market opened in the green with 3.3 million shares changed hands. Trading moved fast as both buyers and sellers were active, but in general, buyers were more aggressive and willing to pay premium. The market got more excited towards the end of the trading session and closed at the high.
The top market caps were almost all gainers VNM, VIC, MSN VCB, GAS gained except BID lost slightly.
Banking shares were all gainers including CTG, EIB, MBB, STB, VCB but BID lost.
Blue chips were mostly higher while high-beta stocks had a surge, many hit the ceiling level.
On the Hanoi Stock Exchange, the HNX rose 1.19 points or 1.58% to 76.75. Trading volume fell 26% to 63.8 million shares worth VND584.2 billion.
The breadth was  positive with 167 gainers, 70 losers, 50 unchanged and the rest untraded.
The HNX30 jumped 1.89 points or 1.27% to 150.28.

EUROPE: European stocks rose yesterday after the new Federal Reserve chief said she would stick with stimulus, while US lawmakers agreed to raise the debt ceiling and avert another stand-off.
The pan-European FTSEurofirst 300 was up 0.6 per cent at 1,325.25 at 1105 GMT, taking gains over the last six sessions to four per cent. It had hit six-week lows earlier in the month.
London’s FTSE 100 index climbed 0.24 per cent to 6,688.41 points in late morning deals, as investors also awaited the Bank of England’s quarterly forecasts.
Frankfurt’s DAX 30 added 0.71 per cent to 9,545.82 points and Paris’ CAC 40 advanced 0.45 per cent to 4,302.59 compared with Tuesday’s closing values.
Markets rallied after Janet Yellen told Congress she expected to continue predecessor Ben Bernanke’s plan to wind down its bond-buying gradually and keep interest rates low until the jobs market improves significantly.

AMERICA: Weak earnings from tobacco company Lorillard and household products maker Procter & Gamble helped end the stock market’s longest winning streak of the year Wednesday.

Lorillard dropped after the maker of Newport cigarettes said its profit fell as higher costs offset an increase in revenue from both traditional and electronic cigarettes. Procter & Gamble fell after the company lowered its sales and earnings forecasts.

The losses were relatively small. Before Wednesday’s drop, stocks had gained for the previous four days, mitigating some of the market’s weakness in January caused by signs of slowing growth in China and doubts about how strong the U.S. economy was.

“At this point, boring is good,” said Kate Warne, an investment strategist at Edward Jones, an investment adviser. “People are a bit tired of the ups and downs we’ve seen and a relatively flat day would be a sign of confidence,” Warne said.

The Standard & Poor’s 500 index fell half a point, less than 0.1 percent, to close at 1,819.26. The Dow Jones industrial average fell 30.83 points, or 0.2 percent, to 15,963.94. The Nasdaq composite rose 10.24 points, or 0.2 percent, to 4,201.29.

Makers of consumer staples, a category that includes everyday products like soap, diapers and cigarettes, fell the most of the 10 sectors in the S&P 500.

Lorillard had the biggest drop in the index. The stock lost $2.48, or 5 percent, to $47.47 after its earnings disappointed investors.

Procter & Gamble, the world’s largest household products maker, fell $1.35, or 1.7 percent, to $77.49 after the company said it would take a hit because of declines in emerging market currencies against the dollar. Currencies in developing countries such as Turkey, South Africa and Argentina have slumped against the dollar this year.

Concerns about the outlook for emerging markets shook the stock market in January. Those losses continued as investors started to worry about the U.S. economy after some lackluster economics reports.

Stocks have rebounded in the past week. They jumped on Tuesday after Janet Yellen, the new head of the Federal Reserve, said she would continue the central bank’s market-friendly, low-interest rate policies.

The S&P 500 was down almost 6 percent for the year as of Feb. 3, but has since pared that loss to 1.5 percent thanks to gains in health care and technology stocks. Both sectors have jumped 4.5 percent in the past week.

For the market to advance from here, investors will want to see further evidence that the economy is improving said, Cameron Hinds, a regional chief investment officer for Wells Fargo Private Bank. While the economic reports have been weak, many economists believe that the unusually cold winter has been a factor.

“People are going to start looking for strength in the economy to get the market going,” said Hinds.

TripAdvisor was among the day’s winners. The online travel company gained $6.07, or 7.2 percent, to $90.27 after posting fourth-quarter results that led an RBC Capital Markets analyst to upgrade his rating on the stock. TripAdvisor said late Tuesday that its fourth-quarter revenue jumped and was stronger than analysts expected. Most of its revenue came from click-based advertising.

In government bond trading, the yield on the 10-year Treasury note climbed to 2.76 percent from 2.73 percent on Tuesday.

In commodities trading, oil rose 43 cents, or 0.4 percent, to $100.37 a barrel. The price of gold rose $5.20, or 0.4 percent, to $1,295 an ounce.

Among other stocks making big moves:

— Amazon.com fell $12.54, or 3.5 percent, to $349.25 after analysts at UBS lowered their rating on the stock from “buy” to “neutral” on concern about revenue from the internet retailer’s “Prime” customers. Amazon was among the biggest decliners in the S&P 500.

— DaVita HealthCare Partners jumped $2.02, or 3.1 percent, to $66.35, a day after the kidney dialysis provider said it reached an agreement to resolve a government investigation and reported fourth-quarter income that soared 36 percent and topped analyst expectations.

Benchmark Currency Rates

USD EUR JPY GBP CHF CAD AUD HKD

USD

1.3595 0.0098 1.6611 1.1106 0.9086 0.8945 0.1289

EUR

0.7355 0.0072 1.2217 0.8170 0.6679 0.6579 0.0948

JPY

102.4700 139.3300 170.2610 113.8240 93.1080 91.6580 13.2132

GBP

0.6020 0.8185 0.0059 0.6687 0.5466 0.5383 0.0776

CHF

0.9004 1.2241 0.0088 1.4955 0.8181 0.8053 0.1161

CAD

1.1006 1.4966 0.0107 1.8285 1.2224 0.9849 0.1420

AUD

1.1180 1.5200 0.0109 1.8559 1.2413 1.0151 0.1441

HKD

7.7560 10.5433 0.0757 12.8820 8.6147 7.0424 6.9355

Source: Bloomberg

 


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