Regional bourses started todays trading mostly firmer and enjoyed above the neutral line till midmorning after a strong US employment report raised optimism about the world largest economy. But most of early momentum faded in the afternoon as uncertainty about Greeces unresolved debt crisis. Risk sentiments also hit by tracking weaker opening of the European bourses today.
The US non-farm payrolls report showed much larger than expected expansion in US job market by 243,000 in January, recording the best number in nine months and even better than Decembers impressive 203,000, revised up from 200,000. Unemployment rate dropped again for the fifth straight month to 8.3%, the lowest since February 2009, from 8.5% in December. The pace of growth in the US services sector, as reflected by the ISM non-manufacturing index, also rose to 56.8 in January, its highest in nearly a year.
Risk sentiment hit by concerns about the European debt situation. News out of the euro-zone continued to depress sentiment, particularly those concerning Greek debt negotiations. Greeces coalition parties will inform the European Union today whether they accept a new bailout deal to avoid a disorderly default.
Euro group Chairman Jean-Claude Juncker in a newspaper interview published over the weekend warned that there will be no second fiscal aid program for Greece if it doesnt comply with the consolidation and reform program set by the EU and the IMF. Euro-area leaders maintained pressure on Greece to accept terms demanded by international lenders during a weekend of talks to avert a financial collapse.
Back to countrywide performances, the Tokyo stock market ended sharp higher on Monday, with the benchmark Nikkei Stock Average rose by 1.1% to 8,929.20, as investor appetite for risk assets resumed after much stronger than expected employment data from US. Most of the sectoral indices ended higher, with shares from automakers, machinery firms and other stocks that are sensitive to economic trends led rally. But upward move was limited in the Tokyo market amid disappointed over corporate earnings announcement. Japans corporate earnings results have been weak so far. Out of 109 Nikkei companies that have reported, two thirds of them failed to meet market expectations.
Tamron Co advanced 3.6% to 2,191 yen after the company reported net income of 3.8 billon yen for the FY2011, up by 3.1% from corresponding year earlier. Company net sales grew by 3.3% to 58.50 billion yen and reported an operating income growth of 4.2% to 5.68 billion yen. Tamron forecasted FY12 sales would grow by 11.1% to 65 billion yen and net income growth expected to rise by 5% to 4 billion yen
Nikon Corp. surged 11.2% to 2,064 yen after the camera maker raised its full-year operating profit estimate by 7.5% to 72 billion yen for the fiscal year ending March 31, 2012.
Elpida Memory Inc slipped 3.2% to 336 yen on doubt about the possible acquisition plans for the troubled Japanese company moved forward after US rival Micron Technology Inc CEO and chairman Steve Appleton died in a plane crash on Friday.
Nihon Dempa Kogyo Co. posted net income of 1.487 billion yen for the nine month ended December 2011, down by 19% from corresponding year earlier of 1.836 billion yen. Company has forecasted its full year Ending March 31, 2012 net profit would grow by 15% to 2 billion yen. Shares of Nihon Dempa Kogyo advanced 7.6% to 951 yen.
JS Group Corp closed 2.1% up at 1,550 yen. Building and construction company revised down its net income forecast on Monday to 16 billion yen for the fiscal year ending March 31, down by 55.6% or 20 billion yen from previous projection of 36 billion yen announced on November 7, 2011. Company said net sales expected to decline from 1.34 trillion yen projected earlier to 1.29 trillion yen. Operating income would decrease by 50% to 21 billion yen. Company said downward revision of full year forecast mainly due to low level of housing starts seen recently, severe market environment, and negative impact from the massive flooding in Thailand. Company said housing investment is showing signs of recovery but hovered at a low level. Business environment was tough with significant negative impacts to the supply chain from the Great East Japan Earthquake and the Thai Flood.
Tokyo Electron dropped 8.2% to 4,040 yen after announcing net profit of 755 million yen for the December quarter, down from corresponding period year earlier. The company also left its full current fiscal year operating profit guidance unchanged at 57 billion yen.
In Australia, the broader All Ordinaries index closed 1.03% higher while the S&P/ASX200 index rose 1.05%, as investors appetite for risk assets resumed after much stronger than expected employment data from US, ignoring weak domestic retail sales report. Mining companies were top performer after base metals closed sharply higher on the London Metal Exchange on last Friday. BHP Billiton advanced 1.6% at A$38.21 and Rio Tinto 2.6% to A$72.30. Alumina grew 4.4% to A$1.32. Iron ore miner Fortescue Metal was up 5.7% to A$5.36.
The latest ABS Retail Trade figures show that Australian retail turnover fell 0.1% in December 2011, seasonally adjusted, following a rise of 0.1% in November 2011. The largest contributor to the fall was Food retailing (-0.7%), followed by Cafes, restaurants and takeaway food services (-1.8%). These falls were offset by rises in Clothing, footwear and personal accessory retailing (3.5%), Department stores (1.1%) and Household goods retailing (0.2%).
The average price of unleaded petrol raised 1.6 cents to 145.1 cents a litre in the week ending February 5, data from the Australian Institute of Petroleum shows. The national weekly average metropolitan price rose 2.4 cents to 144.8 cents a litre, while the weekly average regional price fell by 0.1 of a cent to 145.8 cents a litre.
In China, the Chinese market finished largely in mixed terrain on Monday, with the Shanghai Composite Index ended tad 0.03% up after swung between gain and losses, registering third day of wining streak, as enthusiasm spur by strong US employment figures countering disappointment over lack of policy easing news from the Beijing and IMFs revised down of China economic growth rate. Investors also opted cautious stance amidst lack of progress in Greece debt swap deal.
The International Monetary Fund cut its forecast for Chinas economic growth this year to 8.25% from 9.0% projected in September, citing the threat of weakening exports amid an uncertain global environment. In its China Economic Outlook report released Monday, the IMF said Chinas growth rate, which stood at 9.2% last year, would drop abruptly if the euro zone experienced a sharp recession.
Chinese Coal miners went up on expectation of rebound in coal demand as the weather turns warmer and the economy gains ground. China Coal advanced 1% to 9.70 yuan. Yanzhou Coal added 0.04% to 24.16 yuan. Airline carriers closed lower after media news that Chinas Civil Aviation Administration has banned the countrys carriers from participating in the EU Emissions Trading Scheme. Air China declined 0.7% to 6.78 yuan, China Eastern Airlines 1% to 4.09 yuan, and China Southern Airlines 0.6% to 5.06 yuan.
In India, the Bombay Stock Exchanges 30-share Sensex provisionally closed at 17,705, up by 0.57% from last Fridays, on sustained buying by funds and retailers amid a firming trend in Asian markets. Realty, metals and capital goods led the gainers pack while oil & gas sector was marginally in the red.
Among other Asian bourses, the Hong Kong hang Seng Index declined 0.23% to 20,709.94. Singapore Strait Times index added 0.76% to 2,940.10. South Korea KOSPI was up 0.04% to 1,973.13. Taiwan TAIEX index lost 0.7% at 7,687.98. The New Zealand market was closed for Waitangi Day holiday.
Indonesia Jakarta Composite index was down 1.02% to 3,974.79. Indonesias economy expanded 6.46% last year amid rising investment and domestic spending, according to a report from the statistics bureau in Jakarta.
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