Market Update
Asian markets overcame a weak open and mostly rallied Monday as they began the week on a positive note.
The Nikkei slipped 0.2%. The Shanghai Composite gained 1.9% while the Hang Seng added 2.1%. The Sensex extended last week's gains, creating fresh records as it surged another 1.9%. The All Ordinaries edged 0.2% lower.
Earlier, data showed Japan’s economy watchers index fell more-than-expected in April to a seasonally adjusted 41.6 from 67.9 in March. Another official report also revealed some disappointing balance-of-payment data. Yet another report showed a smaller-than-expected current account surplus for March.
Stocks on the Move
Investors focused on corporate earnings Japan.
Among the companies reporting results, Renesas Electronics fell 7.5% while Asahi Glass slipped 3.2%. Konica Minolta dropped 11% while Sumitomo Electric was down 6%.
Among the gainers, Olympus scaled up 5% while Sapporo Holdings added 2.4%.
Hitachi and Nissan are due to report after the market close.
Some of the big movers in Hong Kong included Tencent, up over 5% after a broker recommendation. China Shenhua Energy added 3.3%. Sinopec climbed 3.6% while in Shanghai, it was up 2.2%.
Agile Property was flat after it reported a drop in its April pre-sales.
Banks were all gainers with ICBC up 1.5% and AgBank 2.8% higher. China Construction Bank added 2.1%.
The Sensex also surged in Mumbai as India looked to conclude its voting later today. Hopes are high for a Narendra Modi-led BJP victory to overturn 10 years of Congress misrule characterized by a series of high-profile corruptions scams that have destroyed the investment cycle and put a spanner in India’s economic growth.
SBI was the top gainer on the Sensex, up 3.9%, followed by HDFC Bank and Coal India, both up 3.8% each. BHEL was up 3.7% while Axis Bank and Airtel added 3.1% each, respectively.
In Sydney, miners were all lower after a drop in iron ore prices.
Coca-Cola Amatil was down 0.3% after the company’s new chief executive spoke of a management reshuffle.