Market Update
Asian markets ended mixed after a range-bound session Friday even as the Sensex rallied smartly outperforming its regional peers to end at an all-time record high.
The Nikkei closed up 0.3%. The Shanghai Composite declined 0.2% while the Hang Seng edged up 0.1% The Sensex added 2.9% while the All Ordinaries slipped 0.3%.
India’s 30-share benchmark Sensex soared ahead of exit polls that are to be issued after the last votes are cast on May 12. Exit polls are an indicator of how the nation has voted. Actual results will be unveiled on May 16. Other polls have so far shown the BJP and its Prime Ministerial candidate Narendra Modi ahead in the electoral race, seen as being more investor-friendly.
Earlier, data showed China's April consumer price inflation rose 1.8% over the last year, less than expectations calling for a 2% increase. Producer price inflation fell 2%, slightly more than expectations of 1.9%.
Elsewhere in the region, South Korea’s central bank left its policy rate at 2.5% as expected.
Stocks on the Move
Toyota reversed intra-day losses of about 2% and closed up 0.6%. Reporting after the market close yesterday, the automaker posted a record-breaking profit but forecast flat revenue and a small drop in profit for the current year.
Toshiba gained 1.3% after forecasting record-breaking operating profit this year, although the guidance was lower than expectations.
Also after results, Rakuten fell 5.5% after reporting a weak quarterly performance while Takeda Pharmaceutical was down 1.8%.
Shares of electronics retailer K's Holdings Corp. picked up 3% after the company provided an upbeat forecast.
Canon ended 1.9% higher after announcing a share buyback.
In Hong Kong, AgBank was up 0.6% initially after it said it plans to raise up to 80 billion yuan in preferred stock. However, it gave up all its gains and ended down 0.3%.
Great Wall Motor plunged 16.9% as the markets expressed their disappointment over the further delay of its long-awaited H8 sports utility vehicle.
Casino shares rebounded from their falls the previous session. Wynn Macau gained 5.1% while Galaxy Entertainment and Sands China also rose 5.6% and 5.7% each, respectively. Melco Crown was up 2.6% after reporting unaudited results.
In Mumbai, infrastructure stocks were among the notable gainers. Cement and other infra companies are set to receive a boost as a Narendra Modi-led government is likely to kick start a stagnant investment cycle.
ICICI Bank was the top gainer on the Sensex, up 6.6%, followed by Tata Power, by 5.6%, and Hindalco, up 5.4%.
HDFC Bank gained 5.3% while BHEL rose 5.2%. Coal India was up 5.1% while Axis Bank, ONGC, Maruti Suzuki, and HDFC all gained over 4%. RIL, Hero MotoCorp, SBI, M&M, Tata Steel, and L&T all gained in a range between 3.3% and 3.9%.
In Sydney, Envestra zoomed 18.1% after it received a competing bid from Li Ka-shing’s Cheung Kong Group. Envestra’s other suitor is APA Group. APA shares ended a percent higher.
News Corp. added 3% following its results released yesterday.
Lender ANZ pared intra-day losses of as much as 2.8%. Still, shares ended 0.8% lower as it traded without rights to the latest dividend.