Asia Roundup: Mostly up after Wall Street rally

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

Asia’s markets rose yesterday Moday February 10, taking their lead from a strong rally on Wall Street as investors brushed aside below-forecast United States jobs data, and analysts suggested the recent downturn may have ended.

Tokyo rose 1.77 per cent, or 255.93 points, to 14,718.34, Seoul was flat, inching up 0.80 points to 1,923.30 and Sydney was 1.08 per cent, or 55.6 points, firmer at 5,222.1.

Shanghai rallied 2.03 per cent, or 41.57 points, to 2,086.07.

There had been fears that a disappointing set of US jobs numbers could send global markets slumping again after suffering huge sell-offs at the start of the month following weak US and China manufacturing reports and the US Federal Reserve’s decision to further cut its stimulus.

However, Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, said: “Wall Street’s reception of the jobs numbers showed that the recent market correction may very well be over.”

HONGKONG:  SHARES ended lower yesterday, bucking a regional advance despite a strong lead from Wall Street.
The Hang Seng Index fell 0.27 per cent to end at 21,579.26 points on turnover of HK$60.42 billion.
Hang Lung Properties fell 1.4 per cent to HK$21.75, Internet giant Tencent rose 1.72 per cent to HK$533.50, HSBC fell 0.13 per cent to HK$79.20, China Mobile added 0.62 per cent to HK$73.55 and energy firm CNOOC dipped 0.17 per cent to HK$12.10.
Cathay Pacific Airways lost 0.39 per cent to HK$15.40 and Henderson Land Development slipped 2.60 per cent to HK$41.20.

SINGAPORE:THE Straits Times Index (STI) ended 4.06 points, or 0.13 per cent, higher at 3017.2 points.
The FTSE ST Mid Cap Index fell 0.04 per cent while the FTSE ST Small Cap Index shed 0.31 per cent.
Of the actives, SingTel rose 0.29 per cent, DBS advanced 0.18 per cent, UOB fell 0.25 per cent, Genting SP gained 1.80 per cent and Keppel Corp retreated 0.39 per cent.
The outperforming sector, FTSE ST Utilities, appreciated by 2.27 per cent.
Of its two biggest stocks, Hyflux advanced 3.93 per cent and HanKore added 0.91 per cent.

KUALA LUMPUR: THE benchmark index closed above 1,800 points yesterday on continued gains on most heavyweights, dealers said.
The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 7.55 points to close at 1,816.14, after moving between 1,812.29 and 1,819.99 throughout the day.
CIMB was the top contributor with 2.09 points, gaining 14 sen to RM7.15, followed by MISC and IOI Corp, which added 13 sen and eight sen each to close at RM6.23 and RM4.19, respectively.
On the scoreboard, the Finance Index soared 62.26 points to 16,629.35, Plantation Index rose 32.19 points to 8,429.87, and the Industrial Index increased 6.15 points to 3,086.16. The FBM Emas Index chalked up 57.88 points to 12,538.38, FBMT100 Index garnered 52.57 points to 12,240.25 and the FBM 70 advanced 65.62 points to 13,766.18.
The FBM ACE Index, however, eased 0.45 point to 6,150.71 points.
Market breadth was positive as gainers thumped losers by 530 to 267, while 319 counters were unchanged, 477 untraded and 18 others suspended.
Among the heavyweights, Maybank went up two sen to RM9.82 and TNB improved six sen to RM11.80. Axiata and Sime Darby were one sen better each at RM6.50 and RM9.02, respectively.
Meanwhile, FBM KLCI futures contract on Bursa Malaysia Derivatives closed higher, tracking the underlying cash market’s performance.
Spot month February 2014 rose 5.5 points to 1,815.5 points, March 2014 gained 8.5 points to 1,815.5, June 2014 rose six points to 1,812 points, and September 2014 rose nine points to 1,811 points.
Turnover dipped to 5,301 lots from Friday’s 6,689 lots, while open interest narrowed to 35,812 contracts from 38,853 previously.

In other markets:

* Mumbai fell 0.21 per cent to end at 20,334.27 points. Idea Cellular fell 8.43 per cent to 126.50 rupees a share while competitor Reliance Communications fell 3.95 per cent to 120.35 rupees.

* Bangkok lost 0.45 per cent to 1,290.66. Coal producer Banpu fell 1.83 per cent to 26.75 baht, while Airports of Thailand fell 1.44 per cent to 171.50 baht.

* Jakarta closed down 0.36 per cent to 4,450.75. Mobile phone provider Indosat fell 0.25 per cent to 4,030 rupiah, while Indah Kiat Pulp & Paper lost 0.38 per cent to 1,315 rupiah.

* Taipei was flat, edging up 4.60 points to 8,391.95. Leading smartphone maker HTC eased 3.79 per cent to T$127.0 while Taiwan Semiconductor Manufacturing Co was 0.96 per cent lower at T$103.0.

* Wellington fell 0.16 per cent to 4,833.06. Energy provider Vector ended down 4.0 per cent at NZ$2.38 and SkyCity fell 1.6 per cent to NZ$3.66. Fletcher Building was off 0.22 per cent at NZ$8.98.

* Manila closed 0.52 per cent higher, adding 31.11 points to 6,042.25. Universal Robina rose 1.02 per cent to 119 pesos while Ayala Corp added 1.43 per cent to 533 pesos.

VIETNAM: Vietnamese stocks posted strong gain today following global market rallies and after being sold heavily last Friday.
The benchmark VN Index jumped 6.14 points or 1.12% to 555.9. Volume fell 12% to 110 million shares worth of VND1.94 trillion. Put-through trading contributed 3.28 million shares worth of VND314 billion.
We saw 6.82 million ITA shares changed hands at VND7,600 each, and 4 million BID shares changed hands at the floor level of VND15,500 each.
The market breadth turned positive with 174 gainers, 51 losers and 66 unchanged.
The VN30 gained 8.6 points or 1.38% to 631.42. Among 30 constituents, 23 gained, 4 fell, 3 stood still.
Market opened in the green with 1.9 million shares changed hands. Trading moved fast as both buyers and sellers were active. The market stayed in the positive for the whole trading day, heading to the North as it progressed.
The top market caps were firm GAS, VNM stood still,  VCB, VIC, MSN and BID gained.
Banking shares were all gainers except CTG which fell.
Property stocks were strong in general. Of note, HAG and NTL limited up with heavy trading volume.
Blue chips were mostly higher while many pennies limited up including VIP, VST, VTO, SHI.
On the Hanoi Stock Exchange, the HNX gained 0.78 point or 1.04% to 75.56. Trading volume fell 14% to 69.4 million shares worth VND534.8 billion.
The breadth was positive with 155 gainers, 64 losers, 65 unchanged and the rest untraded.
The HNX30 rose 2.8 points or 1.91% to 149.33.

EUROPE: European stock markets extended gains yesterday, having already risen ahead of the weekend despite poorly-received United States jobs data.
The Swiss stock market and franc held up after a shock vote in favour of Switzerland restricting immigration with the European Union.
In late morning deals, London’s FTSE 100 rose 0.02 per cent to stand at 6,572.79 points compared with Friday’s close. Frankfurt’s DAX 30 rose 0.12 per cent to 9,313.23 points and Paris’ CAC 40 added 0.24 per cent to 4,238.32.
“European equity markets are trading moderately higher … managing to extend Friday’s gain on the back of very firm markets in Asia overnight and US indices having rallied strongly into the close,” said Peregrine & Black trader Markus Huber.
Meanwhile, the FTSEurofirst 300, was up 0.3 per cent at 1,303.78 points. The index, up nearly 40 per cent since June 2012, was supported by optimism about a global economic recovery, led by developed economies such as Europe and the US.

AMERICA: The stock market ended up more or less where it began Monday in a quiet day for investors who had little economic data or company earnings to react to.

Analysts said the market is likely to remain in a holding pattern until traders hear from Janet Yellen in her first testimony before Congress since becoming head of the Federal Reserve.

After spending most of the day lower, the Dow Jones Industrial average turned slightly higher in late trading and closed up 7.71 points, or 0.1 percent, at 15,801.79.

The Standard & Poor’s 500 index rose 2.82 points, or 0.2 percent, to 1,799.84 and the Nasdaq composite rose 22.31 points, or 0.5 percent, to 4,148.17.

The tech-heavy Nasdaq was pushed higher by Apple, which rose $9.31, or 2 percent, to $528.99. Apple rose after the activist investor Carl Icahn said he has dropped his shareholder proposal to force Apple to increase its stock buybacks. Apple recently disclosed it had bought $14 billion of its own stock.

Yellen, who started her term as head of the central bank this month, is scheduled to testify before Congress on Tuesday and Wednesday. Yellen’s comments will be closely watched, especially after recent disappointing economic news and the Fed’s decision to further reduce on its monthly bond purchases.

Despite recent volatility in the market, investors believe that Yellen will likely continue her predecessor’s plan to continue winding down the Fed’s economic stimulus program. Last week, the Fed cut its bond purchases to $65 billion a month.

“We should expect more volatility as the Fed transitions away from its (economic stimulus plan),” said Doug Cote, chief investment strategist at ING Investment Management.

Investors got a respite from a recent deluge of earnings and economic reports. Wall Street remains in the middle of earnings season, when the bulk of the nation’s publicly traded companies report their quarterly results. Only two out of the 55 companies announcing this week reported their results Monday: the toy maker Hasbro and the industrial conglomerate Loews Corp.

Hasbro rose $2.27, or 5 percent, to $52.36. Hasbro’s said its fourth-quarter profits fell from a year ago, due to a slow holiday season, but it also boosted its dividend and issued a bright outlook for 2014.

Loews, which owns a variety of businesses including insurance, oil drilling and hotels and resorts, fell $1.92, or 4 percent, to $43.26. The company reported a loss of 51 cents a share, due to some one-time charges tied to its ownership of insurance company CNA Financial.

So far this quarter, 344 members of the S&P 500 index have reported their results. While the earnings results have been solid — up 8.1 percent from a year ago, according to FactSet — many companies have been lowering their forecasts for 2014. Fifty-seven companies have cut their forecasts for 2014, while only 14 have raised them, according to Factset.

“The guidance for the upcoming quarters has not been good at all,” said Sam Stovall, chief equity strategist with S&P Capital IQ.

Stocks are also coming off of a strong finish last week.

The Dow rose 188 points on Thursday and 166 points on Friday. The market rallied Friday despite a government report that U.S. employers added just 113,000 jobs in January, fewer than economists were anticipating.

The Dow, S&P 500 and Nasdaq are all still negative for 2014, although the Nasdaq is down less than 1 percent. The Dow is down almost 5 percent this year, the S&P 500 almost 3 percent.

Trading volume was lighter than normal due to the lack of economic data and company news. Roughly 3.3 billion shares were traded on the New York Stock Exchange, slightly below the recent average of 3.4 billion shares.

Benchmark Currency Rates

USD EUR JPY GBP CHF CAD AUD HKD

USD

1.3670 0.0098 1.6423 1.1175 0.9030 0.8979 0.1289

EUR

0.7312 0.0072 1.2012 0.8174 0.6603 0.6568 0.0943

JPY

102.1900 139.7600 167.9100 114.1340 92.2920 91.7880 13.1759

GBP

0.6088 0.8325 0.0060 0.6806 0.5497 0.5467 0.0785

CHF

0.8952 1.2235 0.0088 1.4698 0.8077 0.8033 0.1153

CAD

1.1075 1.5139 0.0108 1.8189 1.2370 0.9944 0.1428

AUD

1.1137 1.5228 0.0109 1.8291 1.2447 1.0058 0.1437

HKD

7.7574 10.6089 0.0759 12.7428 8.6659 7.0040 6.9642

Source: Bloomberg

 

Category: FinanceAsia

Print This Post

Comments are closed.