Asia bourses rise; Hong Kong at seven-year high

AFPTokyoAsian markets rallied yesterday, led by an almost 4% surge in Hong Kong on its first post-holiday trading day as it reacted to weak US jobs data that reduced the chances of a rate rise any time soon. The Japanese central bank’s decision to delay any new easing measures pushed the yen up against the dollar, while investors await the release of minutes from the Federal Reserve’s latest policy meeting. Oil prices ticked lower on profit-taking in Asia after climbing Tuesday to their highest level of 2015. Hong Kong, which last traded on Thursday, soared 3.80%, or 961.22 points, to 26,236.86 at a seven-year high. Shanghai ended 0.84%, or 33.43 points higher at 3,994.81 and Tokyo added 0.76%, or 149.27 points, to 19,789.81. Sydney rose 0.59%, or 34.7 points, to 5,960.7 and Seoul advanced 0.60%, or 12.23 points, to end at 2,059.26. In other markets, Taipei fell 0.73%, or 69.93 points, to 9,571.97; Taiwan Semiconductor Manufacturing Co sank 2.05% to Tw$143.0 while Hon Hai eased 0.11% to Tw$93.7. Wellington was flat, edging up 4.28 points to 5,859.71; Spark New Zealand sank 2.77% to NZ$2.98 while Air New Zealand added 1.29% to NZ$2.75. Manila closed 0.77% lower, giving up 60.72 points to 8,037.96; Ayala Land was unchanged at 40 pesos while BDO Unibank Inc dropped 1.17% to 118.50 pesos and Metro Pacific Investments fell 4.13% to 4.64 pesos. Last week’s Labor Department data showing that the US economy created fewer jobs in March than it had for more than a year raised expectations that rates will be kept low through the summer. The next focal point is the release later Wednesday of minutes from the last Fed meeting, with dealers poring over them for clues about when the bank plans to announce a rise. In currency trading the dollar edged down after the Bank of Japan stood pat on monetary policy even though the country is struggling to overcome anaemic price growth. The dollar bought ¥119.88, down from ¥120.32 in New York Tuesday but well above the low – ¥119 range seen in Tokyo at the start of the week soon after the US jobs data. “There’s still a little bit of doubt in the market as to really where the US economy is, and more importantly, how the Fed perceives the US economy,” Raiko Shareef, a markets strategist in Wellington at Bank of New Zealand, told Bloomberg News. The dollar is “in a little bit of a holding pattern”, he added. The euro rose to $1.0875 in Tokyo from $1.0813 in New York and to ¥130.32 from ¥130.11. However, dealers were cautious as Greece faces a deadline today for its next bailout repayment to the International Monetary Fund. Eurozone deputy finance ministers will meet to seek agreement on Athens’s reforms needed to unlock the last tranche of its multibillion-dollar bailout and avert a default. On Wall Street Tuesday the Dow edged down 0.03%, the S&P 500 dropped 0.21% and the Nasdaq fell 0.14%. Oil prices retreated from their 2015 highs, which were prompted by an easing of fears that Iranian crude would soon flood the market after last week’s nuclear deal with the West. Also providing support was news that Saudi Arabia had raised prices for Asia, citing increased demand. US benchmark West Texas Intermediate for May delivery fell $1.10 to $52.88 a barrel in afternoon Asian trade and Brent crude for May dropped 71 cents to $58.39.Sensex climbs; rupee remains firmBloombergMumbaiIndian stocks rose for a fourth day, with the benchmark gauge holding at a three-week high, as resources and energy companies rallied amid inflows from global investors.Coal India, the world’s biggest producer of the fuel, jumped the most in 10 months after Business Standard reported the government has eased limits on electronic sales at market prices. Reliance Industries, owner of the world’s largest refining complex, climbed the most in a month. Tata Consultancy Services extended a two-day, 1.7% rally.The S&P BSE Sensex gained 0.7% to 28,707.75, the highest close since March 17. Foreigners purchased a net $41.4mn of local shares on Tuesday, taking this year’s inflows to $6.3bn, the most in Asia. Templeton Emerging Markets Group is “waiting for a correction” in India to boost its holdings of the nation’s equities, Executive Chairman Mark Mobius said in Hong Kong. “The outside view of India is far stronger than the inside view,” Abhay Laijawala, the head of research at Deutsche Equities India, said in an interview to Bloomberg TV India. India has “a very energetic government that is intent on reforms and investors are willing to wait” for the policy changes to filter through to company earnings, he said.Laijawala, the most accurate Sensex forecaster last year in Bloomberg surveys, has maintained the 2015 target at 33,000 even as some of his peers have trimmed their estimates for the equity gauge amid concerns about a revival in earnings.Meanwhile the partially convertible rupee ended trade at 62.2375/2475 per dollar versus its Tuesday’s close of 62.25/26 as sharp overnight gains in the dollar were offset by higher local shares. The benchmark 10-year bond yield ended flat at 7.79% from the previous close, stabilising a day after bond yields rose 7 bps after the RBI kept rates on hold.The benchmark five-year swap rate up 2 basis points at 7.10%, while the one-year rate also rose 2 bps to 7.56%.