INGOT Brokers AU | Asian market report (2017-06-29)

Asian market report (2017-06-29)

The indices in Asian markets have closed on a high on Thursday, mimicking the US markets, due to comments from the top central bankers. The Nikkei 225 increased by 0.45% to close at 20,220.3, in other terms it increased by 89.89 points. As for the Australian Index, S&P/ASX 200 it increased by 1.08% or 62.402 points to close at 5818.1. That was due to the material gains in the energy, information and materials sectors. The Chinese market also increased by 0.46% or 14.6973 points to close around 3,187.9. East Asian stock markets are broadly expected to rise through the rest of this year, driven up by solid economic growth and company earnings even as central banks across the region move towards tighter monetary policies, a Reuters’ poll found.

The Japanese yen strengthened 0.04 percent versus the greenback at 112.34 per dollar. The Bank of Japan and the European Central Bank still engaged in large-scale asset purchases, there is still plenty of cash swirling around in the financial system looking to find a home and stocks are the asset class of choice for global investors still searching for yield.

As for firm based news, Toshiba was the main story in the Asian markets as it postponed its plans for the sale of its memory business after the legal action was taken against Western Digital for interfering in the deal. The preferred bidder was an alliance from Japan that was chosen earlier this month. This led the Toshiba shares to decline by 3.69%.

J. Front Retailing, on the other hand, closed on an 8.65% higher after the release of its Q1 net profits that beat expectations of the Japanese department store holding company.

Moreover in China, the Yuan having risen over 2 percent since the start of this year to trade at its highest level since November last year in the early parts of the session as China is showing signs it may gradually tighten more this year as it looks to reduce risks in the financial system.

The stock market rose supported by the strong gains in raw material shares as a weaker dollar lifted commodities prices thus easing fears of a quarter-end liquidity crunch in the banking system.

Shares in China's coal miners were particularly strong, as the country said it will ban coal imports at small ports from July 1, boosting China's coking coal futures, where Shanxi Coking surged the maximum allowed 10 percent and Shanxi Xishan Coal jumped 4.4 percent.

Australian stock market extended its gains following Wall Street yesterday’s gains and the stronger commodities.

The major miners, BHP Billiton, Rio Tinto and Fortescue Metals are all rising almost 2 percent each, as well as Oil stocks that gained on the rising crude oil prices with Woodside Petroleum advancing 1 percent, while Santos and Oil Search rising more than 2 percent each.

Australia’s big four banks - ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac - are advancing in a range of 1.5 percent to 1.8 percent.

Cabcharge has sold its 49 percent stake in UK's CityFleet Networks to its joint venture partner ComfortDelGro for 7.9 million pounds, or A$13.4 million. The taxi payment system company's shares are adding 0.4 percent.

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