Market Update
Asian markets ended higher Thursday supported by an upbeat manufacturing report on China and a positive finish for Wall Street overnight.
The Nikkei gained 2.1%. The Shanghai Composite slipped 0.2% while the Hang Seng added 0.5%. The Sensex moved ahead 0.3% while the All Ordinaries rallied 1%.
Earlier, HSBC released a stronger-than-expected manufacturing report on China with its "flash" Purchasing Managers’ Index for May standing at 49.7, up from 48.1 in April. Economists also pointed to the output sub-index which came in at a four-month high at 50.3 as an encouraging sign. Mainland Chinese markets swung to gains following the data from a 0.3% loss earlier.
Stocks on the Move
Exporters were up after the dollar rebounded against the yen, rising above the 101 yen level after the minutes from the U.S. Fed’s latest meeting revealed the bank is focused on exiting quantitative easing.
In exporters, Sony gained 1.9%. Panasonic added 1.9% while Sharp and Hitachi added over 2% each.
Toyota was up 2% while Honda and Nissan gained 1.9% and 1.3% each, respectively. Mazda advanced 3.9%. Fuji Heavy lifted 5.1%.
Fanuc added 1.2% while Bridgestone was up 1.4%. Nintendo gained 2.4%.
Lenovo ended up a marginal 0.2% higher, extending a two-day rally following its record-breaking results.
PetroChina climbed 1.6% after parent company CNPC struck a deal with Russia’s Gazprom ensuring itself a supply of natural gas for 30 years starting 2018.
Banks were strong gainers with ICBC up 1.2%, China Construction Bank up 1.5%, and AgBank up 1.2%. China Merchants Bank advanced 1.3% while Bank of Communications added 1.6%.
Coal India surged as it ended on a strong note, up 4.8%. The stock has rallied ever since the BJP was seen as wining the Indian elections on hopes of a recovery in its fortunes. Since his confirmation as the new Prime Minister, Narendra Modi is now reportedly exploring the break-up of the state-owned giant as well as the opening up of the sector to foreign investment in order to boost production and cut imports.
NTPC added 5.3%.
Other gainers included Maruti Suzuki, up 4.4%, SSLT, up 3.9%, and Tata Power, up 3.3%. Gail India was up 3%.
In Sydney, James Hardie added 5.7% after results even as it declared a special dividend and an additional share buyback.
Woodside Petroleum climbed 1.2%. The company said it was still open to a deal, having pulled out of Israel’s Leviathan natural-gas project just yesterday.