Australia Shares Rise to One-Month High-- 2nd Update
December 29 2015 - 4:08AM
Dow Jones News
By Chao Deng
Shares in Australia rose to fresh one-month high and led most
Asian markets higher Tuesday.
After shaking off a weak start, the S&P/ASX 200 finished at
the day's high, up 59.7 points, or 1.2%, at 5267.3. It was the
eighth-straight advance for the market, now at its highest since
Nov. 23.
The benchmark rose with the help of consumer staples and
discretionary shares, which rose 2.4% and 1.9%, respectively.
Financial firms on the index, including banks, also rose 1.4%.
While volumes are light, these sectors are getting a boost from
holiday-spending expectations, while banks stand to benefit from a
higher interest-rate environment, said Andrew Sullivan, managing
director at Haitong International Securities.
National Australia Bank Ltd. gained 1.8%, Westpac Banking Corp.
rose 1.5% and Commonwealth Bank of Australia and Australia &
New Zealand Banking Group both climbed 1.4%. Banks can start
charging higher margins when benchmark rates rise. Earlier this
month, the U.S. Federal Reserve increased short-term rates for the
first time in years.
Elsewhere, Hong Kong's Hang Seng Index was up 0.4%, while the
Shanghai Composite Index was up 0.9% after a 2.6% selloff Monday,
its worst daily percentage drop in a month.
The Nikkei Stock Average gained 0.6% and South Korea's Kospi was
up 0.1%.
A fresh selloff in oil prices kept a cap on the gains. Energy
shares were roughly flat in Australia and down 0.4% in Hong
Kong.
While last week's respite in oil-price declines helped lure
investors back to the sector, U.S. crude prices fell again Monday,
down 3.4%. That pushed U.S. stocks lower, with energy shares
notching some of the steepest declines.
Brent crude oil prices were last up 0.4% to $36.75 a barrel in
Asia trade Tuesday.
In China, investors continue to gauge several concerns as the
year winds down: scrutiny by Chinese officials over capital flight
as the economy slows; a potential flood of new shares to the market
next year as China launched a registration-based IPO system; and
possible selling by large Chinese shareholders next year, once
authorities allow them to. A six-month ban on selling by large
shareholders, put in place during July, is set to expire in early
January.
Hong Kong-listed property developer China Vanke Co. took another
step to counter a possible unsolicited takeover from a company that
owns a large chunk of its shares, by striking a deal to potentially
issue new shares to an unnamed investor. The statement didn't
disclose details such as the identity of the investor, the assets
it might sell or how many shares it might issue.
Shares of the firm remained suspended, having soared 19% this
month through Dec. 18.
Shares of Real Nutriceutical Group Ltd., which has been targeted
by short seller Glaucus Research Group California LLC, were down
3.6% even after the firm said late Monday that its chief executive
had stepped in to support the stock. Shares plunged 16% Monday when
they resumed trading for the first time following a suspension on
Oct. 22. The firm sells nutritional supplements and health
drinks.
Gold prices were up 0.3% at $1,071.40 a troy ounce.
Robb M. Stewart contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
(END) Dow Jones Newswires
December 29, 2015 03:53 ET (08:53 GMT)
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