Asian shares gain as markets await details from China meeting
People look at an electronic stock board of a securities firm in Tokyo, Tuesday, Nov. 12, 2013. Asian stock markets mostly traded higher Tuesday after the Dow Jones industrial average hit another all-time high. AP PHOTO/KOJI SASAHARA
HONG KONG—Asian shares were mostly higher on Tuesday amid a lack of trading cues, as markets awaited the outcome of a major political meeting on economic reforms in China.
Tokyo closed up 2.23 percent, with the Nikkei 225 index gaining 318.84 points to 14,588.68 as a weaker yen buoyed exporters.
Seoul rose 0.92 percent, with a rally in Samsung shares helping lift the KOSPI 18.18 points to close at 1,995.48.
Shanghai shares closed up 0.82 percent on Tuesday shortly before China’s Communist Party concluded a closely watched meeting and approved a decision on “comprehensively deepening reforms”, state media reported.
The benchmark Shanghai Composite Index rose 17.30 points to 2,126.77.
Zheshang Securities analyst Zhang Yanbing told Dow Jones Newswires that investors were chasing stocks they thought likely to get policy catalysts, identifying healthcare and insurance providers as among favoured companies.
A decision on “major issues concerning comprehensively deepening reforms” was approved and the market will play a “decisive” role in the allocation of resources, Xinhua said following the meeting.
Hong Kong stocks closed 0.73 percent lower, with many investors staying on the sidelines before the end of the policy meeting. The benchmark Hang Seng Index ended down 168.44 points at 22,901.41.
Manila closed up 0.94 percent following recent losses as the Philippines reels from supertyphoon Haiyan, with well over 10,000 people feared dead and the magnitude of the disaster continuing to build.
In Japan, Shinkin Asset Management fund manager Naoki Fujiwara said the weaker yen remained the dominant trading cue as it boosted exporters’ earnings.
“There is very little (other) news or data to trade on, with earnings releases thus far having been unexciting, or even disappointing with few impressive upward forecast revisions,” he said.
Sydney finished 0.11 percent higher, adding 6.0 points to 5,393.1.
But analysts said the Australian dollar was hit by a downbeat monthly business survey from National Australia Bank, which showed that confidence fell to a score of +5 points in October from +12 a month earlier.
The unit fell to 93.29 US cents from 93.80 cents Monday.
The Dow Jones Industrial Average gained 21.32 points (0.14 percent) Monday to 15,783.10, hitting a second consecutive record high, in thin trade because of the Veterans Day holiday.
In Asian currency trade, the dollar climbed to 99.74 yen, up from 99.20 yen in New York Monday, on expectations that the Federal Reserve could start tapering off its $85 billion a month asset purchase programme next month or in January.
The Fed has said any drawdown—seen as a plus for the dollar—hinges on signs of a firm recovery. There was more evidence last week that the US economy is on the right track with positive jobs numbers and better than expected growth data.
“More and more market players expect the Fed to start tapering the program by the end of the year,” Daisuke Karakama, market economist at Mizuho Bank, told AFP.
The euro was at $1.3381 against $1.3407 and at 133.47 yen from 133.01.
Oil prices edged lower in Asian trade Tuesday as dealers await fresh developments in the bid by world powers to reach a landmark deal to curb Iran’s nuclear programme.
New York’s main contract, West Texas Intermediate (WTI) for December delivery, was down 28 cents to $94.86 a barrel in afternoon Asian trade. Brent North Sea crude for December fell 23 cents to $106.17.
Gold was under pressure at $1,280.67 per ounce at 1109 GMT compared with $1,285.27 on Monday.
In other markets:
— Taipei closed 0.16 percent, or 12.70 points, higher at 8,195.26.
Taiwan Semiconductor Manufacturing Co. was 0.48 percent higher at Tw$105.0.
— Wellington ended down 0.13 percent, or 6.50 points, at 4,915.67.
Chorus slipped 2.19 percent to NZ$2.01, Fletcher Building fell 0.32 percent to NZ$9.45 and Telecom Corp added 0.65 percent to NZ$2.335.
— Bangkok added 0.51 percent or 7.17 points to close at 1,413.08.
Coal producer Banpu closed unchanged at 27.25 baht, while Bangkok Bank lost 0.50 percent or 1.00 baht to close at 200.00.
— Jakarta ended down 1.38 percent, or 61.08 points, at 4,380.64.
State miner Aneka Tambang fell 3.50 percent to 1,380 rupiah, while mobile-phone operator Indosat rose 2.78 percent to 3,700 rupiah.
— Singapore closed down 0.20 percent, or 6.47 points, at 3,180.25.
Oversea-Chinese Banking Corporation eased 0.57 percent to Sg$10.39 while vehicle distributor Jardine Cycle and Carriage was down 3.21 percent at Sg$35.00.
— Manila rose 0.94 percent gaining 58.94 points to 6,324.17.
Newly listed, top-traded Robinson Retail Holdings Inc. gained 4.42 percent to 59 pesos while Alliance Global Group Inc. rose 1.37 percent to 25.95 pesos.
— Kuala Lumpur dropped 9.41 points, or 0.52 percent, to close at 1,794.80.
Felda Global Ventures Holdings lost 2.3 percent to 4.30 ringgit, while Petronas Gas fell 1.8 percent to 23.48.
— Mumbai ended down 209.05 points, or 1.02 percent, at 20,281.91 points.—David Watkins
