Hong Kong Shares Produce Solid Rise After China Easing Move (Review)

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Hong Kong shares finished up on Tuesday, tracking China shares that finally rallied in late afternoon following an easing move by the central bank.

The Hang Seng index rose 1.6 percent, to 19,407.46, while the China Enterprises Index gained 1.9 percent, to 8,068.29 points.

Total trading volume of companies included in the HSI index was 1.5 billion shares.

Source : Reuters

Yen Holds Declines as Equity Rebound Tempers Demand for Safety

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The yen held losses against most of its major counterparts as equities in Asia extended gains after monetary stimulus in China earlier this week brightened prospects for the world’s second-largest economy.

Japan’s currency remained lower against 14 of its 16 main peers after China’s central bank on Feb. 29 cut the amount of cash lenders must hold in reserve. Demand for the yen as a haven from turmoil in global markets saw it post a 7.5 percent advance against the dollar in February, its biggest gain since October 2008.

The yen was at 113.78 per dollar as of 9:12 a.m. in Tokyo on Wednesday, from 114.01 in New York, where it depreciated 1.2 percent. It was little changed at 123.78 per euro, after touching a three-year high of 122.09 on Tuesday.

Source: Bloomberg

Oil Gains Push Aust Dollar Higher

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The Australian dollar has jumped as optimism reigned overnight, boosting commodity currencies.

At 7.00am (AEDT) on Wednesday, the local unit was trading at US71.76c, up from US71.46c on Tuesday.

A surge in risk sentiment was fuelled by more positive US data surprises and repeated signals that the European Central Bank may ease.

A US manufacturing index had a modest improvement in January, although it remained in contraction for a fifth straight month.

RBC Markets chief US economist Tom Porcelli said it was more signs of stabilisation in the industry after a soft patch.

“If we are indeed witnessing the bottoming process in the oil-related pain... it could have a meaningful impact on broad non-residential investment,” he said.

Meanwhile, ECB president Mario Draghi bolstered the case for another dose of stimulus at the central bank’s meeting next week.

“Draghi said the March review will be conducted against a backdrop of downside risks to the outlook and there are no limits to the deployment of stimulus instruments,” Westpac economists said.

“Equities, commodities, US interest rates and the US dollar all rose, while the commodity currencies outperformed.”

Traders will now closely watch local December quarter gross domestic product figures due out Tuesday, where a 2.65 per cent annual growth rate is expected.

Source: businessspectator

Asian Stocks Track U.S. Gains as Yen Drops, Energy Shares Climb

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Asian stocks rose, following a surge in U.S. shares, as a weaker yen buoyed Japanese equities and energy companies advanced.

The MSCI Asia Pacific Index climbed 0.6 percent to 120.57 as of 9:01 a.m. in Tokyo, with health-care and energy shares leading gains. Japan’s Topix index added 1.9 percent after the yen slid 1.2 percent on Tuesday, while the Standard & Poor’s 500 Index posted its largest increase since January. Crude pared a rally on Wednesday after rising almost 5 percent the previous two days. The Asia Pacific gauge has jumped 6.7 percent from this year’s low on Feb. 12.

South Korea’s Kospi index advanced 1.4 percent and Australia’s S&P/ASX 200 Index rose 1.5 percent. New Zealand’s S&P/NZX 50 Index climbed 0.2 percent.

Futures on Hong Kong’s Hang Seng Index added 0.9 percent in most recent trading, while contracts on the Hang Seng Chain Enterprises Index and the FTSE China A50 Index each gained 1.3 percent.

Source: Bloomberg

Japan Stocks Rise, Following U.S. Equity Surge, as Yen Weakens

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Japanese stocks rose for a second day, following a surge in U.S. equities, as the yen weakened and data indicated manufacturing in the world’s largest economy may be stabilizing.

The Topix index jumped 1.9 percent to 1,325.11 as of 9:01 a.m. in Tokyo, with all of its 33 industry groups rising. The Nikkei 225 Stock Average added 1.9 percent to 16,394.78. The yen traded at 113.91 per dollar after dropping 1.1 percent on Tuesday. The Nasdaq 100 Index powered to its best day in six months as U.S. equities lead a March revival in global equities amid signs that the world’s largest economy remains on firm footing.

Futures on the Standard & Poor’s 500 Index slipped 0.1 percent. The underlying equity measure soared 2.4 percent on Tuesday, the most in a month, after data showed American factories look set to emerge from a yearlong slump, while monthly gains at major carmakers showed consumers stepping up spending a day after China added to stimulus, alleviating anxieties that had sent U.S. shares to the worst start to a year on record.

Source: Bloomberg