Asia Pacific Market: Stocks Shine On ECB Hopes

　　Asia Pacific share market tradedhigher on Wednesday, 21 January 2015, as risk sentiments boosted up on hopesstimulus from central banks to bolster uneven global growth. The MSCI AsiaPacific Index added 0.9% to 139.8.

　　Investors were looking forward to the European CentralBank (ECB) policy statement tomorrow for any stimulus measures. Many in theregional markets are betting that the ECB President Mario Draghi probably throwthe continent's stricken economy another lifeline, a 550 billion-euro ($635billion) program of quantitative easing.

　　Markets also expects China's to roll out more supportmeasures after reporting on Tuesday that its economy grew at its slowest pacein 24 years in 2014.

　　The Bank of Japan ended a two-day meeting onWednesday. The Bank of Japan cut its inflation forecast for fiscal 2015 to 1%from 1.7% previously, but left its target for the monetary base unchanged inits policy decision today, citing brighter economic growth that couldeventually help put prices back on a firm upward path. A continued slide in oilprices is making it even more difficult for the central bank to achieve its 2%inflation target anytime soon, but the absence of extra easing measuressuggests the BOJ remains optimistic that underlying inflation remains in placeand the economy could grow faster down the line.

　　Among Asian bourses

　　Australia market climbs 1.61%

　　Australian share market closed sharply higher, as risksentiments boosted up on growing expectations of a larger stimulus program fromthe European Central Bank. All ASX sectoral indices advanced with mining stockswere leading the gains. The benchmark S&P/ASX 200 Index advanced 85.70points to 5393.40 and the broader All Ordinaries Index grew 80.60 points to5367.40.

　　Shares of material and resources companies advancedthe most in Sydney market, with heavyweight BHP Billiton improving 2.1% toA$28.05 after it reported a 16% quarterly gain in iron-ore output but alsowarned of up to A$250 million in oil-asset write-downs. Rio Tinto gained 2.6%to A$55.09 as J.P. Morgan affirmed its overweight rating, citing likelybuybacks and/or special dividends. Among the pure iron-ore plays, Atlas Ironrallied 2.8% to A$0.18 as Deutsche Bank raised its price target on the shares,while and BC Iron rose 2% to A$0.51. Australia's third largest iron ore minerFortescue Metals Group fell 0.4% to A$2.32.

　　Senex Energy shares lost 1.9% to A$0.26 after slashingits capital expenditure by 20% to between A$85-90 million for the 2015financial year.

　　APA Group shares pushed 2.9% higher to A$7.87 afterfinishing a A$1.838 billion equity raising to help fund to acquire a A$6billion pipeline. APA sold 57.3 million shares in its retail shortfallbookbuild, for A$7.60 per share.

　　Nikkei falls 0.5% on stronger yen

　　Japanese share market closed down in volatile trade,on profit taking as yen appreciated against greenback after the Bank of Japanfailed to announce any new measures to stimulate its economy at a policymeeting. The Nikkei Stock Average ended down 0.5% at 17280.48, while the broaderTopix lost 0.5% to 1390.61.

　　There was some market speculation that the BOJ coulddo something to front run the European Central Bank's likely quantitativeeasing this week and potentially match the Swiss National Bank's move last weekand cut its own deposit rate. This speculation was not realized, triggeringsignificant appreciation in yen against the greenback since the BOJannouncement and also accelerated profit-taking into stock market. The yenadded 0.8% to 117.84 per dollar after weakening for three days.

　　Shares of insurers declined the most in Tokyo market,hurt by profit booking following yesterday rally, with Dai-Ichi Life falling3.4% to 1,572 yen, while MS&AD Insurance Group Holdings Inc. slipped 2.9%to 2,676.5 yen.

　　Shares of currency-sensitive exporters declined onprofit taking after yen appreciated against the US dollar. A weaker dollarerodes exporter profits as companies have less latitude to cut prices on goodsthey sell overseas, and earns them less yen with the profits they send backhome. Shares of Toshiba fell 2.3% to 469.50 yen, while Hitachi lost 0.4% to889.80 yen and chip-testing equipment maker Advantest slipped 0.7% to 1352 yen.

　　Fujikura shares retreated 4.5% to 472 yen after areport the cable maker's operating profit likely dropped 40% as sales at cablemakers are affected by slower car production in Japan.

　　Konami Corp. gained 6.8% to 2144 yen after GoldmanSachs Group Inc. raised its rating on the game developer to buy from neutral,citing bright sales prospects for the firm's Metal Gear Solid V: The PhantomPain title, scheduled for launch this year.

　　China market surges 4.74%

　　Mainland China share market advanced for secondconsecutive session, as investors continued bargain hunting after the worstfall in more than six years early in the week. Risk sentiments underpinnedafter the stock regulator denied speculation it had intentionally sought tosuppress the market's rally that sent the Shanghai market up more than 50% in2014. The market also took some comfort from China's fourth-quarter growthdata, which came in better than expected. The benchmark Shanghai CompositeIndex surged 4.7% to close at 3323.61, on the top of yesterday's 1.8% advance.

　　Shares of financial companies advanced the most inBeijing market, with brokerages houses being major gainers, after securitiesregulator statement that the regulatory actions against rule-violating brokersdo not suggest a cool down of stock markets. Citic Securities gained 7.7%.Haitong Securities climbed 10% daily upper limit. Bank of China soared 9.9% andAgricultural Bank of China jumped 5.6%.

　　China's production of crude steel, an indicator of itsindustrial demand, fell to its slowest pace of growth on record last year,according to data released yesterday by the National Statistics Bureau. Outputof the metal rose just 0.9% from 2013 to 822.7 million metric tons,underscoring how China's vast steel complex, which produces half the world'ssteel, has fallen to the government's push for a cleaner, consumption-ledeconomy.

　　Hang Seng lifts 1.8% up

　　Hong Kong share market advanced for second consecutivesession, tracking rally on the Mainland A-share market after comments by theChina's securities regulator that the regulatory actions against rule-violatingbrokers do not suggest a cool down of stock markets. The Hang Seng Index endedhigher by 401.42 points or 1.68% to 24352.58, off an intra-day high of 24373.28and day low of 24016.63. Turnover increased to HK$104.29 billion from HK$88.49billion on Tuesday.

　　Within HK 50 blue chips, 42 stocks rose and 7 fell,while remaining 1 stock unchanged. CHINA MER HOLD (0144) rose 6% to HK$27.60,while SWIRE PACIFIC A (0019) dipped 1.5% to HK$101.90, making themselves thebiggest blue chip winner and loser.

　　Shares of insurance companies advanced after MorganStanley statement on Monday's market that slide has limited impact on insurers.CPIC (02601) soared 5.9% to HKK$38.9. Ping An (02318) added 3.6% to HK$86.6.China Life (02628) put on 3.1% to HK$31.8.

　　China Mobile (00941) stock jumped 4% to HK$102.1 afterreleasing strong December operating data, triggering fund houses purchases.

　　China Telecom (00728) also soared 5% to HK$4.53 onreports that its parent company plans to bid mobile broadband network projectin Mexico.

　　Sensex, Nifty attain record closing high

　　Indian stock market registered modest gains amiddivergent trend among various constituents of the index. The S&P BSE Sensexgarnered 104.19 points or 0.36% to settle at 28,888.86, a record closing highfor the index. The CNX Nifty gained 33.90 points or 0.39% to settle at8,729.50, a record closing high for the index.

　　Capital goods stocks gained. Shares of public sectorbanks were in demand. Shares of private sector banks were mixed. Indexheavyweights HDFC, Infosys, and L&T edged higher. Shares of pharmaceuticaland FMCG companies were mixed. Shares of media major Zee EntertainmentEnterprises edged lower on profit taking after the company reported strong Q3December 2014 earnings.

　　Foreign portfolio investors (FIIs) bought Indianshares worth a net Rs 1320.42 crore from the secondary equity marketsyesterday, 20 January 2015, as per data from the National Securities Depository(NSDL).

　　In the foreign exchange market, Indian rupee edgedhigher against the dollar on optimism demand for local assets will increase asplunging oil prices improve India's economic outlook.

　　Elsewhere in the Asia Pacific region: Taiwan's Taiex index added0.74% to 9319.71. South Korea KOSPI was up 0.15% to 1921.23. New Zealand'sNZX50 added 0.7% at 5672.85. Singapore's Straits Times index advanced 0.23% at3341.58. Indonesia's Jakarta Composite index was up 0.01% to 5166.72. Malaysia'sKLCI added 0.35% to 1756.23.