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Asian Shares Recover From Early Losses To Close Higher

CANBERA (Alliance News) - Asian stocks recovered from early falls to finish on a steady note ...

Alliance News 7 December, 2017 | 9:24AM
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CANBERA (Alliance News) - Asian stocks recovered from early falls to finish on a steady note Thursday as the dollar inched up against the yen and oil eked out small gains after falling as much as 3% overnight on data showing a larger-than-expected increase in US gasoline stocks.

Chinese stocks ended lower due to year-end profit booking by investors. The benchmark Shanghai Composite index dropped 21.91 points or 0.7% to 3,272.05, while Hong Kong's Hang Seng index closed up 0.3% at 28,303.19.

In a report released Wednesday, the International Monetary Fund said that more capital is justified for the largest banks in China because of their systemic importance and interconnectedness. Increasing capital would enhance the resilience and credibility of the financial system, as well as reassure markets, it said.

Japanese shares rallied on bargain hunting as Moody's Investors Service retained the sovereign ratings of the country with 'stable' outlook and the yen weakened against the dollar, bolstered by reports that the US Congress is on track to approve legislation that would avert a partial government shutdown over the weekend.

The Nikkei average finished up 320.99 points or 1.5% at 22,498.03 after suffering its biggest fall since March the previous day. The broader Topix index closed 1.2% higher at 1,786.25.

Advantest Corp jumped 1.8% after the chip company said it would strengthen its semiconductor parts business. Fanuc rose 1.3% while Tokyo Electron soared as much as 4.9%. Market heavyweight Fast Retailing advanced 2.4%.

Australian shares rose to snap a three-session losing streak, with banking and oil stocks leading the surge. The day's economic releases proved to be a mixed bag, with Australia's construction activity expanding at the fastest pace in four months in November, while October trade surplus came in well below forecasts.

The benchmark S&P/ASX 200 index gained 32 points or 0.5% to finish at 5,977.70 while the broader All Ordinaries index ended up 30.90 points or 0.5% at 6,060.80.

The big four banks rose between half a percent and 1.3%. Energy majors Santos and Origin Energy climbed around 1% each as oil rebounded in Asian trading after steep overnight losses.

Miners closed on a mixed note, with Rio Tinto rising 0.9%, while BHP Billion and Fortescue Metals Group ended in the red. Yowie Group soared 15% after the chocolate maker said it would further expand into the US

Seoul shares hit two-month lows amid selling by foreign investors on concerns over rising geopolitical tensions in the Middle East following US President Donald Trump's announcement to recognize Jerusalem as Israel's capital. The benchmark Kospi fell 12.39 points or 0.5% to 2,461.98.

New Zealand shares rose on bargain hunting after three straight sessions of losses. The benchmark S&P/NZX50 index climbed 41.74 points or 0.51% to 8,172.60, with Fletcher Building and Spark New Zealand rising around 3% each.

Residential property prices in New Zealand climbed 6.4% year-over-year in November, faster than the 3.9% rise in October, data published by the Quotable Value showed.

India's Sensex was rising 0.6% and Malaysia's KLSE Composite index was moving up 0.2%, while benchmark indexes in Indonesia, Singapore and Taiwan were down between 0.1% and 0.4%.

Overnight, US stocks ended mixed as oil prices plunged and investors fretted about the possibility of violence in the Middle East. Traders largely ignored strong ADP private payrolls data.

The Dow slid 0.2% and the S&P 500 edged down marginally to register its fourth straight session loss while the tech-heavy Nasdaq Composite rose 0.2%.

Copyright RTT News/dpa-AFX

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