INGOT Brokers Australia | Asian market report (2017-07-19)

Asian market report (2017-07-19)

Equity markets across Asia ended higher on today’s close mostly boosted by the positive outlook for the Chinese economic growth, the rise in the Australian banking sector as well as the slight recovery of the US Dollar that fell to its 10 months low due to lack of the support for the US president Donald Trump health care bill.

The surprisingly positive Chinese housing data boosted the market sentiment regarding the Chinese economic growth prospects leading its equity market to settle higher, with Hang Seng Index adding 0.53 percent to gain for the fourth consecutive session, Shanghai Composite surging by 1.42 percent and Shenzhen Composite gaining 1.531 percent.

Moreover, China's blue chip index CSI300 index ended at its highest level since December 2015 at 3,730.71.

Furthermore, Australian equities rose over the announcement from regulators that capital requirement for the country's four biggest banks would be increased by 2020 instead of sooner thus leading them higher through yesterday’s trading session with , ANZ gained 3.92 percent, Westpac added 3.8 percent and National Australia Bank was higher by 3.06 percent.

Meanwhile, the decline came despite the strengthening Australian Dollar that reached its two years high supported by the hawkish tone of the Reserve Bank of Australia as well as the weakening US Dollar.

The analyst is expecting that Rio Tinto’s, which was the focus of the session in addition to the banking sector, the dividend could be its highest due to the high iron ore prices thus driving its shares lower by 0.68 percent.

Moreover, in the mining sector, BHP Billiton reported a 4 percent increase in iron ore production for the full year, touching the low end of its production guidance. However, its copper output slid 16 percent.

Gold miner Newcrest Mining fell by nearly 2 percent, and Evolution Mining lost more than 2 percent despite the higher gold prices.

Australia’s stock market index rose by 0.79 percent after yesterday’s mixed trading session.

Westpac Bank revealed that a leading index for the Australian economy continued to show pessimism in June, and at a sharper rate. The index was down 0.14 percent after easing an upwardly revised 0.01 percent in May.

Elsewhere in Japan, the Japanese market is recovering where the main Index Nikkei225 rose by 0.1% as the safe haven Yen appreciated against USD. However, due to the strength in the safe-haven Yen, exporter’s shares have been decline where Toshiba Stock was the worst performance of the index.

Investors are keeping an eye on the final machine tool orders for the month of June; these numbers will be realized today by the Bank of Japan. The meeting of the Bank will be for two days, and it will revise his monetary policy on Thursday. However, the monetary policy is expected to be unchanged.

Japan Stock Market:

Japanese equities closed Wednesday’s session in the red as the gains generated by the sectors of Power, Chemical, and Petroleum & Plastic, where Nikkei225 rose by 0.1% to close the session at 20020.86.

On NKD225, Losers shares outnumbered gainers ones by 117 to 94, while 14 shares remained flat.

The best performers of the session on the Nikkei 225 were Toho Co Ltd, the company’s share rose 7.35% or 250 points to trade at 3,650.0 at the close. Meanwhile, Tokyo Dome Corp added 5.15% or 52 points to end at 1,062.0, and Showa Denko KK was up 4.91% or 142 points to 3,035 in late trade.

The worst performers of the session were Toshiba Corp which fell 5.22% or 14.4 points to trade at 261.4 at the close. Meidensha Corp Ltd. declined 4.57% or 18.0 points to end at 376.0 and Alps Hokuetsu Kishu Paper Co Ltd. was down 4.32% or 36 points to 797.0.

Australia Market

Australian’s equity was higher in Today’s session due to the gains generated by Financials, A-RITS and Utilities sectors.

On S&P/ASX, Losers’ shares outnumbered gainers ones by 94 to 91, while 15 shares remained flat.

The top performers of the session on the S&P/ASX 200 were Cimic Group Ltd, which rose 6.16% to trade at 41.190 at the close. Meanwhile, ANZ Banking Group added 4.13% to end at 29.470, and Westpac Banking Corporation was up 3.85% to 31.955 in late trade.

The worst performers of the session were St Barbara Ltd, which fell 6.72% to trade at 2.500 at the close. Orocobre Ltd declined 5.34% to end at 3.370 and Nextdc Ltd was down 4.25% to 4.280.

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