Asia shares mostly up
Pedestrians are reflected on an electronic stock board of a securities firm in Tokyo, Tuesday, June 10, 2014. Renewed optimism about the global economy helped push most Asian stock markets higher Tuesday. AP PHOTO/EUGENE HOSHIKO
HONG KONG–Asian markets were mostly higher on Tuesday following fresh records on Wall Street, while Shanghai and Hong Kong rose after data showed Chinese inflation surged in May.
Tokyo fell 0.85 percent, or 129.20 points, to finish at 14,994.80 owing to a weaker yen, but Seoul surged 1.09 percent, or 21.76 points, to 2,011.80 and Sydney edged up 0.1 percent, or 5.67 points, to close at 5469.7.
Shanghai rallied 1.08 percent, or 22.03 points, to 2,052.53 and Hong Kong rose 0.86 percent, or 198.27 points, to 23,315.74.
Global markets have been on an uptrend in recent weeks as dealers cheer a string of impressive data, including a healthy US jobs report, stronger Japanese economic growth and a marked improvement in Chinese manufacturing and trade.
The data, as well as fresh merger and acquisition activity, have sent Wall Street surging. The Dow rose 0.11 percent to its third straight record close on Monday, while the S&P 500 inched up 0.09 percent, hitting an all-time high for the fourth straight session. The Nasdaq added 0.34 percent.
Hong Kong and Shanghai jumped as dealers welcomed figures showing Chinese consumer prices rose by 2.5 percent in May, the highest since January, alleviating residual fears that the world’s second-biggest economy could slip into deflation.
However, inflation is still well below the government’s target of 3.5 percent for 2014, and the latest reading will not be enough to quell calls for Beijing to introduce easing measures to boost the economy.
Help from China’s central bank
Adding to buying sentiment was the announcement Monday by the People’s Bank of China of a cut in the amount of cash that some smaller lenders must keep with the central bank–the reserve requirement ratio–as part of a limited stimulus to boost spending.
However, the PBoC signaled no significant policy loosening is in the pipeline, despite some calls for more forceful relaxation.
BOC International analyst Zhang Yuheng told Dow Jones Newswires: “The economy would have to deteriorate further in order to warrant a cut impacting all banks.”
In foreign exchange trade, the dollar dipped to 102.25 yen in Tokyo Tuesday from 102.53 yen late Monday in New York.
The euro eased to $1.3585 from $1.3592, while it was also at 138.93 yen against 139.35 yen.
Oil prices went up in Asia as investors cheered the recent robust economic data from around the world, with the breakdown of initial Ukraine-Russia talks to avert a gas cut-off also boosting prices.
The US benchmark, West Texas Intermediate for July, gained 33 cents to $104.74 a barrel in afternoon trade after jumping $1.75 in New York on Monday. Brent North Sea crude was up one cent to $110.00 for its July contract after leaping $1.38 on Monday.
Gold fetched $1,253.19 an ounce at 1050 GMT compared with $1,255.94 late Monday.
In other markets:
— Mumbai rose 0.01 percent, or 3.48 points, to end at 25,583.69 points. During the session, it had touched a new lifetime high of 25,711.11 points.
TTK Prestige surged 13.50 percent to 4,122.00 rupees, while Gitanjali Gems rose 9.43 percent to 94.60 rupees.
— Bangkok added 0.82 percent, or 11.89 points, to close at 1,469.19.
Coal producer Banpu gained 0.85 percent or 0.25 baht to 29.75 baht, while Bangkok Bank rose 1.30 percent, or 2.50 baht, to close at 195 baht.
— Singapore fell 0.34 percent, or 11.38 points, to close at 3,293.82.
United Overseas Bank dropped 0.35 percent to Sg$22.60 and casino operator Genting Singapore was down 0.37 percent to Sg$1.34.
— Jakarta ended up 1.25 percent, or 61.01 points, at 4,946.09.
State miner Aneka Tambang rose 0.44 percent to 1,150 rupiah, while Indah Kiat Pulp & Paper fell 0.36 percent to 1,390 rupiah.
— Kuala Lumpur gained 12.92 points, or 0.69 percent, to 1,876.61.
Malaysia Airlines added 2.9 percent to 0.18 ringgit, while YTL rose 2.5 percent to 1.67. Utility Tenaga Nasional lost 0.2 percent to 11.76 ringgit.
— Taipei rose 0.65 percent, or 59.63 points, to 9,222.37.
Taiwan Semiconductor Manufacturing Co. gained 1.22 percent to Tw$124.5 while Cathay Financial Holding was 1.52 percent higher at Tw$46.75.
— Wellington slipped 0.15 percent, or 7.95 points, to 5,179.40.
Telecom was off 1.10 percent at NZ$2.685 and Trade Me fell 0.58 percent to NZ$3.45.
— Manila closed 0.36 percent lower, giving up 24.75 points to 6,777.98.
Philippine Long Distance Telephone dropped 0.21 percent to 2,882 pesos while Ayala Land fell 0.97 percent to 30.60 pesos.
