Asian shares get a fillip from ECB stimulus hopes
Asian share markets advanced on Friday, tracking offshore gains following hints of new stimulus from the European Central Bank (ECB).
ECB President Mario Draghi signaled on Thursday that the central bank is prepared to undertake another large stimulus package to tackle the lackluster growth seen in the euro zone.
“It was not a wait-and-see, but it was a work-and-assess. We are ready to act if needed, we are open to a whole menu of monetary policy instruments,” Draghi said at the ECB’s governing council meeting.
Following the news, the pan-European STOXX 600 powered up 2 percent, with all sectors closing in positive territory. Across the pond, Wall Street surged nearly 2 percent overnight, with the Dow Jones Industrial Average posting its best day since September 8.
“All I see this morning is the word ‘euphoria’ as Mario Draghi and his elves at the ECB practically confirmed there will be an early Christmas present in order for the European economy on December 3. Draghi’s Christmas present is a global present,” IG’s market strategist Evan Lucas wrote in a note released early Friday.
“Expectations are now for Draghi to announce a ‘prolonged period’ (possibly even undefined) of the asset purchase program, likely to be well into 2017,” he added.
|
Symbol
|
Name
|
Price
|
Change
|
%Change
|
|
|---|---|---|---|---|---|
| NIKKEI | Nikkei 225 Index | 18847.48 | 411.61 | 2.23% | |
| HSI | Hang Seng Index | 23169.33 | 323.96 | 1.42% | |
| ASX 200 | S&P/ASX 200 | 5351.60 | 87.76 | 1.67% | |
| SHANGHAI | Shanghai Composite Index | 3397.42 | 28.69 | 0.85% | |
| KOSPI | KOSPI Index | 2041.24 | 18.24 | 0.90% | |
| CNBC 100 | CNBC 100 ASIA IDX | 6773.53 | 101.52 | 1.52% |
Nikkei surges 2.2%
Japan’s Nikkei 225 index zoomed up to 18,910 points — its highest level since August 31.
As the yen weakened to trade at 120.9 versus the U.S. dollar, blue-chip exporters such as Toyota Motor and Toshiba jumped nearly 2 percent each, while Sony piled on 1 percent.
Financials were among the top winners; Mitsubishi UFJ Financial Groupand Sumitomo Mitsui Financial Group advanced nearly 3 percent each, while Nomura Holdings soared 4.8 percent.
Snack food maker Calbee soared nearly 8 percent after the Nikkei business daily tipped a 10 percent rise for the company’s April-September operating profit from a year earlier.
Shares of Central Japan Railway, which announced upgrades to its bullet trains worth 100 billion yen, rose 3.1 percent. The announcement buoyed appetite for rail car and parts makers; Nippon Sharyo and NTN Corp climbed over 4 percent following the news.
China stocks higher
Share markets in China joined the rally, but gains fell short of the broader advances across the region.
The key Shanghai Composite index nudged up 0.2 percent, while the CSI300 Index of the largest listed companies in Shanghai and Shenzhen ticked up 0.2 percent. Small-caps continued to outperform, with Shenzhen’s Nasdaq-style ChiNext board up 1.4 percent.
In Hong Kong, the benchmark Hang Seng index leaped 1.2 percent.
Property counters are in focus after latest data indicated a recovery in the all-important housing market. China’s average new home pricesrose 0.3 percent on-month in September, according to Reuters calculations from official data, chalking its fifth straight month of gains.
On a year-on-year basis, home prices fell 0.9 percent in September, versus a 2.3 percent slide in August.
Shanghai-listed Poly Real Estate and Shanghai Shimao rallied 2.9 and 1.6 percent respectively. Real estate giant China Vanke advanced 0.8 and 2 percent in Hong Kong and Shanghai respectively.
Kospi gains 0.9%
South Korea’s Kospi index headed south on the back of a double booster.
Apart from an upbeat offshore lead, advance estimates released before the market open showed the economy expanded 1.2 percent in the third quarter, topping market expectations for a 1 percent rise. The figures also marked South Korea’s fastest growth in more than five years.
On a year-on-year basis, Asia’s fourth-largest economy grew 2.6 percent in the third quarter from a year earlier, compared with a median forecast of 2.5 percent gain.
Corporate earnings continue to hog the spotlight; SK Innovation rallied 8.8 percent, thanks to a whooping 644 percent on-year jump in third-quarter operating profit.
Kia Motors gave up early gains to close down 1.8 percent after announcing a 16.3 percent on-year drop in third-quarter net profit. LG Display slumped 6.2 percent, hurt by a 30 percent slide in third-quarter profit.
ASX leaps 1.7%
Australia’s benchmark S&P ASX 200 index settled at a two-month peak, chalking up its biggest one-day percentage gain since October 5.
Westpac and Commonwealth Bank of Australia closed up 1.7 and 1.3 percent respectively. National Australia Bank powered up 1.9 percent after announcing that it is raising its variable mortgage rate by 17 basis points from November 12. Australia and New Zealand Banking which announced near midday that it is following suit, finished 1.1 percent higher.
Santos added 2.2 percent to Thursday’s 16 percent surge, which was sparked by the oil and gas producer’s decision to reject a takeover proposal from U.S.-based fund manager Scepter. Market bellwetherBHP Billiton moved up 2 percent.
Beach Energy and Drillsearch Energy shares rose following a merger agreement. The former pared early losses to rebound 3 percent, while the latter piled on 26 percent.
New Zealand shares notched up 0.8 percent to record highs.
KLCI adds 0.4%
Malaysian shares eked out smaller gains than its regional peers as caution lingered ahead of the government’s annual budget for 2016.
On the domestic data front, consumer prices rose 2.6 percent from a year earlier in September, government statistics showed, missing market expectations for a 3.0 percent gain and a 3.1 percent reading in August.
Meanwhile, markets in Thailand are closed for the King Chulalongkorn Memorial Day.
Source: CNBC – Asian shares get a fillip from ECB stimulus hopes
