Market Update
Asian markets moved higher Tuesday as the People’s Bank of China’s decision to enhance liquidity in the system boosted investor confidence, while Japanese stocks climbed on the back of a softer yen.
On Monday, China’s central bank, in a bid to boost liquidity in the system, offered funds to big lenders, which came in as a relief amid rising short-term borrowing costs as demand for cash is on a rise ahead of the Lunar New Year holiday.
Among currencies, the yen slipped against the dollar as the Bank of Japan embarked on a two-day policy meeting. Investors are speculating the central bank would further ease monetary policies. The yen was trading at 104.66 to the dollar at the time of writing.
In commodities, crude oil futures slipped as concerns over Iran eased. Crude was trading at $94.16 per barrel during Asian morning hours.
Among the equity indexes, the Shanghai Composite was up 0.6% while the Hang Seng gained 0.5%.
The Nikkei rallied 1.6% and Australia's All Ordinaries added 0.5%.
Mumbai's BSE Sensex followed the regional trend and was trading up 0.2% at 9:08 a.m. IST.
Stocks on the Move
A softer yen helped Tokyo-listed exporters notch higher. A weaker currency boosts in the earnings outlook of export-oriented firms.
Toyota Motor Corp. accelerated 1.7% while chipmaker Advantest Corp. was 2.3% higher.
In corporate news, NEC Corp. rose 2.2% amid buzz the company plans to sell its subsidiary Biglobe to an investment fund.
In Hong Kong, Lenovo Group Ltd. rose 3.5% after reports said the company is in advanced talks to buy IBM's server unit.
Other export focussed firms also climbed up the ladder. Global clothing retailer Esprit Holdings added 2.6% while Li & Fung Ltd. gained 1.3%
Among others, banks were trading modestly higher -- ICBC rallied 2.3% while Bank of Communications gained 1.4%.
Insurance companies were also on the upside with Ping An Insurance improving over a per cent while China Life Insurance climbed 1.8%.
Resources plays added to the gains. Metal players Jiangxi Copper and Aluminum Corp. of China enhanced around 1.5% each while energy firm China Petroleum & Chemical Corp. bounced 3.4%.
But CNOOC tanked over 5% after announcing production outlook and development plans for 2014.
In Australia, miners were under heavy pressure. Diversified iron-ore explorer Fortescue Metals Group tumbled 4.8% while BHP Billiton eased 0.3%. Rio Tinto dropped 1%.
In the energy segment, Woodside Petroleum lost 1.4% following a ratings downgrade. Santos was down 0.4%.
In Mumbai, stocks opened on a positive note, following gains in their Asian counterparts. Banks and auto firms were among the top runners.
Tata Motors led the pack of gainers, up 3% while SSLT, Tata Steel, ICICI Bank, SBI, Maruti Suzuki and L&T followed closely with a gain of around 1.5% to 2.5% each.
Hindustan Zinc enhanced 2.7% after the Indian government approved the sale of its 29.5% stake in the company.
Colgate Palmolive India Ltd. tacked on a percent ahead of its earnings announcement Tuesday.