Also Follows The Positive Sentiments Generated By Wall Street
The Asian stock markets rallied on bargain hunting following positive sentiments generated by Wall Street's biggest one-day gains since 1 April overnight and a steep fall in oil prices for a second day. Financial stocks rebounded as credit worries eased, following surprisingly strong results from the U.S. bank Wells Fargo. But the resources sector was lower following weaker commodity prices. On the Wall Street, the Dow jumped 2.52% to 11,239.28, the broader S&P 500 gained 2.51% to 1,245.36 and the Nasdaq surged 3.12% to 2,284.85.
Crude oil prices fell $4.14 to settle at $134.60 a barrel on the New York Mercantile Exchange after data released by the U.S. Energy Department showed that domestic inventories of crude oil and gasoline rose last week, rather than declining as analysts had expected. Crude oil is currently down 41 cents at $134.19 a barrel in Asian trade Thursday.
On the currency front, the U.S. dollar recovered to lower 105-yen range in early Tokyo deals from lower 104-yen levels late Wednesday. In Asian currency trading, the U.S. dollar bought 104.82 yen recently, compared with 105.03 yen late in New York. In South Korea, the U.S. dollar opened lower at 1,007.5 won compared to previous day's close of 1,009.3 won. The Australian dollar has opened weaker at US$0.9746-0.9749 and the kiwi held on to its overnight gains and was buying US$0.7715 in early local trade.
The Japanese market closed higher after a mixed performance on yesterday. Wall Street's rally overnight following a sharp decline in oil prices boosted market sentiment. However, concerns over the dollar's weakness against the yen. The banking sector rallied after the U.S. bank Wells Fargo reported better-than-expected quarterly numbers, but oil-related stocks lost ground. The benchmark Nikkei 225 index gained 1.0% to finish at 12,887.95. The broader Topix index gained 1.15% at 1,263.65.
On the economic front, the Finance ministry said that foreign residents were net sellers of Japanese stocks last week. The dumped shares in favor of bonds. Foreigners were net sellers of 242.4 billion yen worth of Japanese stocks for the week ended July 12, the third week of net stock selling. Meanwhile, foreigners were net purchasers of 528.2 billion yen in Japan bonds and notes during the week, the second straight week of net acquisition.
Meanwhile, a final report from the Japanese Cabinet Office showed that the leading index stood at 92.9 in May, up from an initial estimate of 92.6 and 92.8 recorded in April. The coincident index also showed an improvement from its initial estimate. The index recorded a reading of 103.3, an increase from 103 reported earlier. It was also up from 101.7 registered in April. However, the lagging index decreased to 103.4 from 103.7 seen in April.
China's Shanghai Composite Index posted modest losses, lagging a sharp regional advance, after data showed wholesale inflation and factory investment remain elevated, likely leaving policy makers few options on a tightening bias.
The benchmark Shanghai Composite Index closed down 0.8% at 2,684.78 extending yesterday's fall of 2.7%.
According to the data released by the National Bureau of Statistics Bureau showed producer prices rose a faster-than-expected 8.8% in June, up from 8.2% in May. The pace of gains in consumer prices eased somewhat, with the CPI rising 7.1% in June on year, down from a 7.7% in May and 8.5% in April.
First-half gross domestic product climbed 10.4% from a year earlier, easing from an 11.9% expansion in 2007. The consumer price index rose 7.1% in June from a year earlier, easing from a 7.7% rise in May and 8.5% in April.
In Hong Kong, the Hang Seng Index increased 2.4% to 21,734.72, while the Hang Seng China Enterprises Index zoomed up 2.9% to 12,056.56.
The Australian stock market closed higher. The market started off on a firm note and extended its gains for the second straight session after Wall Street rallied overnight following a steep fall in crude oil prices for a second day. The resources stocks fell on weak commodity prices. The benchmark S&P/ASX 200 index closed up 0.6% at 4,901.0 and the broader All Ordinaries index also gained 0.6% to finish at 4,991.4.
On the economic front, Australia's international merchandise imports totaled A$17.527 billion in June, down from a revised A$18.191 billion in May, according to the Australian Bureau of Statistics. The bureau also said preliminary analysis showed that goods imports on a balance of payments basis fell by 2% in seasonally adjusted terms between May and June.
The data, included in the Reserve Bank of Australia monthly bulletin, showed that the central bank sold a net A$875 million in the spot foreign exchange market in June. The central bank also bought a net A$993 million from the government during the month. The Reserve Bank's spot foreign exchange market transactions in May amounted to net sales of A$336 million.
The South Korean market closed higher, ending a three-day losing streak. However, the market came of the day's highs amid caution ahead of the release of quarterly earnings by major U.S. investment banks later in the day. The benchmark Korea Composite Stock Price Index closed up 1.2% at 1,525.56, off a day's high of 1,546.84. The key index rebounded following a nearly 4% decline over the previous three days
On the economic front, Korea Automobile Importers and Dealers Association said that sales of imported cars in South Korea jumped 31.2% from a year earlier in the first half of this year, despite weaker consumer sentiment.
The New Zealand market closed higher extending yesterday's gains. The market started off on a firm note as Wall Street's rally overnight, following a sharp decline in oil prices for a second consecutive session, encouraged investors to look for bargain buys. The benchmark NZX 50 index closed up 1.04% at 3,091.38, after adding 0.6% on Wednesday.
The Indian market is trading firm after opening sharply higher in the morning. A sharp plunge in the price of oil for a second day and positive global cues triggered buying interest, but traders are expressing caution ahead of the release of inflation data today.
After opening sharply higher at 12,909, the BSE Sensex rose to an intra-day high of 13,099 within a few minutes. The Sensex pared its gains closing at 13,111.85, up 536 points or 4.26% over the previous day's close. Meanwhile, the S&P CNX Nifty is up 130 points or 3.42%.
Elsewhere, Taiwan's weighted index spiked 3.9% to 6,974.51, while Singapore's Straits Times Index added 1% to 2,864.10.
Turning toward European markets, jumped higher with investors taking heart from a continued retreat in oil prices and moving back into recently battered sectors such as the banks. In the opening trade, the U.K. FTSE 100 index climbed 1.7% to 5,238.90, the German DAX 30 index rose 1.5% to 6,245.20, and the French CAC-40 index advanced 1.6% to 4,178.23.
On the economic front the day is scheduled to release construction output for the Eurozone, which will be followed by ZEW economic survey for the Switzerland. From US we have building permits, which will be followed by the continuous and initial jobless claims. In the evening we have housing starts accompanied by Philadelphia Fed's manufacturing survey. From Canada the Bank of Canada will release its monetary policy report, which will be preceded by the data on the foreign investment in Canadian securities.
The Asian stock markets rallied on bargain hunting following positive sentiments generated by Wall Street's biggest one-day gains since 1 April overnight and a steep fall in oil prices for a second day. Financial stocks rebounded as credit worries eased, following surprisingly strong results from the U.S. bank Wells Fargo. But the resources sector was lower following weaker commodity prices. On the Wall Street, the Dow jumped 2.52% to 11,239.28, the broader S&P 500 gained 2.51% to 1,245.36 and the Nasdaq surged 3.12% to 2,284.85.
Crude oil prices fell $4.14 to settle at $134.60 a barrel on the New York Mercantile Exchange after data released by the U.S. Energy Department showed that domestic inventories of crude oil and gasoline rose last week, rather than declining as analysts had expected. Crude oil is currently down 41 cents at $134.19 a barrel in Asian trade Thursday.
On the currency front, the U.S. dollar recovered to lower 105-yen range in early Tokyo deals from lower 104-yen levels late Wednesday. In Asian currency trading, the U.S. dollar bought 104.82 yen recently, compared with 105.03 yen late in New York. In South Korea, the U.S. dollar opened lower at 1,007.5 won compared to previous day's close of 1,009.3 won. The Australian dollar has opened weaker at US$0.9746-0.9749 and the kiwi held on to its overnight gains and was buying US$0.7715 in early local trade.
The Japanese market closed higher after a mixed performance on yesterday. Wall Street's rally overnight following a sharp decline in oil prices boosted market sentiment. However, concerns over the dollar's weakness against the yen. The banking sector rallied after the U.S. bank Wells Fargo reported better-than-expected quarterly numbers, but oil-related stocks lost ground. The benchmark Nikkei 225 index gained 1.0% to finish at 12,887.95. The broader Topix index gained 1.15% at 1,263.65.
On the economic front, the Finance ministry said that foreign residents were net sellers of Japanese stocks last week. The dumped shares in favor of bonds. Foreigners were net sellers of 242.4 billion yen worth of Japanese stocks for the week ended July 12, the third week of net stock selling. Meanwhile, foreigners were net purchasers of 528.2 billion yen in Japan bonds and notes during the week, the second straight week of net acquisition.
Meanwhile, a final report from the Japanese Cabinet Office showed that the leading index stood at 92.9 in May, up from an initial estimate of 92.6 and 92.8 recorded in April. The coincident index also showed an improvement from its initial estimate. The index recorded a reading of 103.3, an increase from 103 reported earlier. It was also up from 101.7 registered in April. However, the lagging index decreased to 103.4 from 103.7 seen in April.
China's Shanghai Composite Index posted modest losses, lagging a sharp regional advance, after data showed wholesale inflation and factory investment remain elevated, likely leaving policy makers few options on a tightening bias.
The benchmark Shanghai Composite Index closed down 0.8% at 2,684.78 extending yesterday's fall of 2.7%.
According to the data released by the National Bureau of Statistics Bureau showed producer prices rose a faster-than-expected 8.8% in June, up from 8.2% in May. The pace of gains in consumer prices eased somewhat, with the CPI rising 7.1% in June on year, down from a 7.7% in May and 8.5% in April.
First-half gross domestic product climbed 10.4% from a year earlier, easing from an 11.9% expansion in 2007. The consumer price index rose 7.1% in June from a year earlier, easing from a 7.7% rise in May and 8.5% in April.
In Hong Kong, the Hang Seng Index increased 2.4% to 21,734.72, while the Hang Seng China Enterprises Index zoomed up 2.9% to 12,056.56.
The Australian stock market closed higher. The market started off on a firm note and extended its gains for the second straight session after Wall Street rallied overnight following a steep fall in crude oil prices for a second day. The resources stocks fell on weak commodity prices. The benchmark S&P/ASX 200 index closed up 0.6% at 4,901.0 and the broader All Ordinaries index also gained 0.6% to finish at 4,991.4.
On the economic front, Australia's international merchandise imports totaled A$17.527 billion in June, down from a revised A$18.191 billion in May, according to the Australian Bureau of Statistics. The bureau also said preliminary analysis showed that goods imports on a balance of payments basis fell by 2% in seasonally adjusted terms between May and June.
The data, included in the Reserve Bank of Australia monthly bulletin, showed that the central bank sold a net A$875 million in the spot foreign exchange market in June. The central bank also bought a net A$993 million from the government during the month. The Reserve Bank's spot foreign exchange market transactions in May amounted to net sales of A$336 million.
The South Korean market closed higher, ending a three-day losing streak. However, the market came of the day's highs amid caution ahead of the release of quarterly earnings by major U.S. investment banks later in the day. The benchmark Korea Composite Stock Price Index closed up 1.2% at 1,525.56, off a day's high of 1,546.84. The key index rebounded following a nearly 4% decline over the previous three days
On the economic front, Korea Automobile Importers and Dealers Association said that sales of imported cars in South Korea jumped 31.2% from a year earlier in the first half of this year, despite weaker consumer sentiment.
The New Zealand market closed higher extending yesterday's gains. The market started off on a firm note as Wall Street's rally overnight, following a sharp decline in oil prices for a second consecutive session, encouraged investors to look for bargain buys. The benchmark NZX 50 index closed up 1.04% at 3,091.38, after adding 0.6% on Wednesday.
The Indian market is trading firm after opening sharply higher in the morning. A sharp plunge in the price of oil for a second day and positive global cues triggered buying interest, but traders are expressing caution ahead of the release of inflation data today.
After opening sharply higher at 12,909, the BSE Sensex rose to an intra-day high of 13,099 within a few minutes. The Sensex pared its gains closing at 13,111.85, up 536 points or 4.26% over the previous day's close. Meanwhile, the S&P CNX Nifty is up 130 points or 3.42%.
Elsewhere, Taiwan's weighted index spiked 3.9% to 6,974.51, while Singapore's Straits Times Index added 1% to 2,864.10.
Turning toward European markets, jumped higher with investors taking heart from a continued retreat in oil prices and moving back into recently battered sectors such as the banks. In the opening trade, the U.K. FTSE 100 index climbed 1.7% to 5,238.90, the German DAX 30 index rose 1.5% to 6,245.20, and the French CAC-40 index advanced 1.6% to 4,178.23.
On the economic front the day is scheduled to release construction output for the Eurozone, which will be followed by ZEW economic survey for the Switzerland. From US we have building permits, which will be followed by the continuous and initial jobless claims. In the evening we have housing starts accompanied by Philadelphia Fed's manufacturing survey. From Canada the Bank of Canada will release its monetary policy report, which will be preceded by the data on the foreign investment in Canadian securities.
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