Market Update
Asian markets gained Tuesday, tracking a positive finish on Wall Street overnight following better-than-expected U.S. economic data.
The Nikkei gained 1.4%. The Shanghai Composite was up 0.3% while the Hang Seng was up half a percent. The Sensex added 0.8% while the All Ordinaries was up 0.4%.
Shanghai markets underperformed its regional peers, its gains capped by data out earlier Tuesday showing slowing home prices in China’s top cities. Average home prices in February rose 8.7% from a year earlier, compared with a 9.6% rise in January.
Reports also highlighted a possible bond default of private property developer Xingrun Real Estate.
Copper prices supported miners but gold prices declined as investors shrugged off the latest developments in the ongoing crisis in Crimea.
Stocks on the Move
Index heavyweight Sony declined 0.2% on reports the company’s entertainment unit has started cutting jobs worldwide.
Nissan Motor advanced about 3% after an upgrade from UBS. UBS also upgraded construction firms Obayashi and Kajima, up 3.6% and 2.3% each, respectively.
Mazda gained 1.8% while Suzuki was up 1.6%. Toyota edged up just 0.2%, its shares weighed by labor protests for higher wages in India resulting in the suspension of production at two of the company’s Indian factories.
Tencent Holdings was up 5.7% in Hong Kong ahead of its results tomorrow.
Property developers China Overseas Land and China Resources Land both retreated 2.7% and 1.5% each, respectively. New World Development Company recovered 1.8% after initially falling in the previous session following plans to spin off its mainland China unit.
China Life Insurance was up 2.2% after reporting results. However, its mainland listed shares declined 0.8%.
Maruti Suzuki led gains in Mumbai, up over 7% after the board agreed to seek minority shareholders’ approval after reviewing a project in the western state of Gujarat.
Other gainers included BHEL, up 2.4%, SBI, Coal India, and M&M, all up over 2% each. Gail India, RIL, Axis Bank, ITC, HDFC Bank, ONGC, Tata Steel, SSLT, Tata Power, Bajaj Auto, Dr. Reddy’s Lab, and Airtel were all up in a range between 1% and 1.8%.
In Sydney, index leader BHP Billiton was up 1.7% while Atlas Iron gained 2.2%. Rio Tinto added about a percent.
The minutes from the Reserve Bank of Australia is due out later in the day.