Market Update
Chinese markets led gains for the region despite some unexpectedly weak trade data from the world’s second biggest economy.
The Nikkei ended flat as it pared intra-day gains of over a percent. The Shanghai Composite gained 1.4% while the Hang Seng gained 1.5%. The Sensex edged up 0.1% while the All Ordinaries moved up 0.3%.
Data showed China's exports fell 6.6% in March while imports dropped 11.3%. However, the nation did record a better-than-expected surplus of $7.71 billion. The Chinese markets moved lower immediately after the data but recovered, helped by other positive news. Chinese Premier Li Keqiang said Thursday China would open up its markets to establish mutual stock market connectivity between Shanghai and Hong Kong. Financial shares, brokerages in particular, surged on the news, helping the index swing into the black.
In Australia, a data release showed March unemployment fell sharply to 5.8% which was better than expected, as were the employment numbers. The number of employed Australians rose by 18,100, beating expectations for a drop of 10,000, according to a consensus reported by Dow Jones newswires.
The Ukraine crisis remains in the backdrop with Russian President Vladimir Putin stepping up pressure on Wednesday, threatening to demand advance payment for gas supplies.
Stocks on the Move
Olympus Corp. gained 4.3%, shrugging off a Bloomberg report that six banks are suing the company for about $274 million over its accounting scandal in 2011.
Sony was down 0.8%.
Toyota also ended lower, down 2.4% after its announcement yesterday of a recall of 6.4 million vehicles.
A slight weakening of the yen helped some exporters.
In brokerage names in Hong Kong, Guotai Junan pared gains of about 20% but still ended 13.8% higher. China Everbright surged 6.6% and Galaxy Securities shot up 8.2%. Tanrich Financial Holdings gained 3.3%. CITIC Securities and Haitong Securities were up 9.5% and 7.9% each, respectively.
Tencent also extended gains, up 7.6%.
The Sensex created another record high in early trade before scaling back. The top gainers were Tata Power, up 4.1%, followed by BHEL, up 2.7%, and NTPC, up 2.6%. NTPC gained after it settled its dues with two Coal India subsidiaries, closing a long-standing tussle.
Tata Motors revved up 2.3% while state-owned lender SBI closed up 2.2%. SBI is set to raise $750 million to a billion dollars in bond sales overseas.
In Sydney, David Jones added half a percent while Myer Holdings fell 4.2%.
Treasury Wine Estates also rose half a percent.
Index leader BHP Billiton was down 1.3% while Fortescue Metals dropped 2.4%.