Asian Markets, Fundamentals

Stocks in Asia/Pacific Jump as RBA More than Tripled Economic-Growth Forecast

Asia Session Key Developments

• Japan’s Leading Index Rises for a 6^th Consecutive Month
• RBA Deputy Governor Battellino said Demand for Resources are Likely to Grow.

Stocks in Asia/Pacific Jump as RBA More than Tripled Economic-Growth Forecast

Stocks in Asia/Pacific soared on Friday to pare a weekly loss, after Australia’s central bank increased their economic-growth forecast more than-than-expected. In Japan, the leading index for September rose for a 6^th month amid government measures at domestically and internationally as they have sparked a recovery in global trade. The data indicates that the worst for the Japanese economy is rested behind and the nation may witness a gradual and steady recovery going ahead. At the same time, the Aussie Federal Reserve’s tumbled for a second month, leading the S&P/ASX 200 to climb 1.91%. Meanwhile, RBA’s deputy governor, Battellino said Australia faces an extended period of prosperity, “in general, workers are likely to be in short supply, leading to  strong demand for skilled migrants and therefore fast population growth” he added.

Nikkei 225                          9,789.35

The Japanese equity markets traded higher on Friday, led by the rally among exporters as U.S. jobs revived hope of economic recovery, causing the Nikkei 225 to climb 71.91 points (0.74%) to end at 9,789.35. Technology rallied 1.61% followed by a 1.36% decline in Oil & Gas to taper the advance. Shares of T&D Holdings plunged 10.76% as the company registered to sell as much as ¥120 billion in new shares, while Pioneer Corp advanced 8.85% amid the company cutting its fundraising target by half. At the same time, Mitsumi Electric Co tumbled 6.26% after the company announced that its full-year net income will fall more-than-expected to ¥5.3 billion from ¥11.2 billion from the previous year.

Hang Seng                        21,829.72

The Hang Seng Soared 350.64 points (1.63%) to end the session at 21,829.72. All 9 components pushed higher on the day with Basic Materials leading the advance, rising 2.89%. Shares of Sino Land and Sung Hung Kai Properties gained 3.39%and 2.47% respectively as Hong Kong Home Index rose to a 3-week high, while, China Petroleum & Chemicals gathered1.345 on the back of higher commodity prices. 

S&P/ASX 200 Index           4,594.00

Stocks in Australia traded higher on Friday on the back of higher commodity prices, leading the S&P/ASX 200 to push 86.00 points higher (1.91%) to end at 4,594.00, with 9 of its 10 components trading higher. As a result, Linc Energy, the company that converts coal into liquid fuels, rose 12.46% as they reported a 1 billion to 1.3 billion ton coal exploration target in Orroroo. Meanwhile, Incitec Pivot climbed 4.38% due to JP Morgan raising the company’s rating from “neutral” to “overweight,” with telecom Corporation of New Zealand, New Zealand’s largest phone company, advanced by 2.03% as they stated first-quarter profit rose 9.4%, aided by tax credit.