Sensex Clocks Longest Winning Streak In Over A Month Led By RIL

India's Sensex clocked longest stretch of gains since Dec. 19 led by a rally in Reliance Industries, Kotak Mahindra Bank and Infosys.

The S&P BSE Sensex rose 0.53 percent or 192 points to 35,579 and the NSE Nifty 50 Index climbed 0.50 percent or 55 points to 10,962.

Twelve of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Realty Index's 1.2 percent decline. On the flipside, S&P BSE Energy index was top gainer, up 2.7 percent.

Mid- and small-cap shares underperformed their larger peers as the S&P BSE MidCap Index fell 0.6 percent and the S&P BSE SmallCap Index declined 0.7 percent.

Shares of the Udaipur-based zinc miner fell as much as 2.92 percent to Rs 266.45 as its profit declined in December quarter.

Key earnings highlights:

• Revenue at Rs 5,540 crore versus Rs 5,922 crore (YoY)
• Net profit down 3.78 percent at Rs 2,211 crore versus Rs 2,298 crore (YoY)

Shares of the Mumbai-based public sector lender fell as much as 5.24 percent, the most in over four months, to Rs 87.65 after its profit missed Bloomberg consensus estimates in December quarter.

Key earnings highlights:

• Net interest income down 2.1 percent at Rs 2,494 crore versus Rs 2,548 crore (YoY)
• Net profit at Rs 153.21 crore versus loss of Rs 1,249.85 crore (YoY); Bloomberg estimate of Rs 309 crore
• Other income at Rs 1,095 crore versus Rs 873.1 crore (YoY)
• Provisions at Rs 2,139 crore versus Rs 1,710 crore (QoQ)
• Gross non-performing assets at 15.66 percent versus 15.74 percent (QoQ)
• Net non-performing assets at 8.27 percent versus 8.42 percent (QoQ)

• Shriram City Union Finance: The Chennai-based consumer finance company fell as much as 1.15 percent to Rs 1,753. Trading volume was almost 60 times its 20-day average.
• Gujarat Pipavav: The Mumbai-based shipping port operator fell as much 2.71 percent to Rs 90. Trading volume was more than nine times its 20-day average.
• JK Cement: The Kanpur-based cement maker rose as much as 2.4 percent to Rs 751. Trading volume was seven times its 20-day average.
• Linde India: The Kolkata-based oxygen maker rose as much as 10.47 percent to Rs 678. Trading volume was six times its 20-day average.

Shares of the Delhi-based commercial finance company rose as much as 10.85 percent, the most in over four months, to Rs 47.50 after its reported December quarter earnings.

Key earnings highlights:

• Revenue from operation at Rs 1,310 crore versus Rs 1,075 crore (YoY)
• Net profit up 27 percent at Rs 328 crore versus Rs 258.68 crore (YoY)

• EID Parry has 10 lakh shares change hands in a block deal. Stock down 5.6 percent at Rs 201.40.

Buyers and sellers were not immediately known

Source: Bloomberg

Bloomberg Exclusive: Government Is Said To Mull Switch To Cash Payments, Scrap Farm Subsidies

Rupee, bonds trimmed losses after Bloomberg reported that Modi government's farm distress relief package will not impact fiscal deficit in FY19 and will ‘have’ a limited impact in FY20.

Government is considering a plan to transfer cash to farmers instead of offering subsidies on various agricultural inputs, people with knowledge of the matter told Bloomberg.

Prime Minister Narendra Modi’s government is planning to club all farm subsidies including fertilizer costs and instead pay farmers cash, the people said asking not to be identified as the discussions aren’t public. The additional cost will be limited to Rs 70,000 crore annually, the people said. Finance Minister Arun Jaitley had budgeted Rs 70,100 crore for farm subsidies in year ending March 31.

Shares of the Uday Kotak-led bank recovered from intraday low levels and rose as much as 0.85 percent to Rs 1,251 after its profit rose and asset quality improved in December quarter.

Key earnings highlights:

• Net profit up 23 percent at Rs 1,291 crore versus Rs 1,053.21 crore. (YoY)
• Net interest income up 23 percent at Rs 2,939 crore versus Rs 2,394 crore. (YoY)
• Gross non-performing assets as a percentage of total advances at 2.07 percent versus 2.15 percent. (QoQ)
• Net non-performing assets as a percentage of total advances at 0.71 percent versus 0.81 percent (QoQ)
• Writes back provision of Rs 32.30 crore versus provisioning for bad loans of Rs 353.80 crore in the previous quarter.

India VIX — the gauge of volatility based on Nifty 50 Index Option prices rose as much as 9.55 percent or 1.6 points to 18.20.

Nifty's 11,000 strike price call contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract surged 34 percent to Rs 100.45. Over 1.47 lakh shares were added to the open interest which stood at over 37.45 lakh shares.

Shares of the Mukesh Ambani-led company rose for second day in a row posting its best two-day performance since April 2017, according to data compiled by Bloomberg.

In the last two trading sessions stock has surged as much as 8.18 percent to Rs 1,227.20, also its highest level since Oct. 4.

Reliance Industries has been on an upward spiral after its profit beat Bloomberg consensus estimates in December quarter on Thursday.

• NTPC has 17.5 lakh shares change hands in a block deal. Stock down 0.6 percent at Rs 143.30.

Buyers and sellers were not immediately known

Source: Bloomberg

Indian equity benchmarks extended gains led by Reliance Industries, HDFC Bank, Infosys and TCS.

The Sensex rose 0.80 percent or 290 points to 36,677 and the NSE Nifty 50 Index climbed 0.67 percent or 73 points to 10,980.

Twelve of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Energy Index's 2.2 percent gain. On the flipside, S&P BSE Realty Index was top loser, down 0.71 percent.

Mid- and small-cap shares were underperforming their larger peers as the S&P BSE MidCap Index was trading flat while the S&P BSE SmallCap Index declined 0.2 percent.

Shares of the Uday Kotak-led private lender declined as much as 1.42 percent to Rs 1,222.65 ahead of December quarter earnings.

Here's what to expect from the bank in December quarter (Bloomberg consensus estimates):

• Net interest income seen rising 10 percent to Rs 2,633 crore versus Rs 2,394 crore (YoY).
• Net profit seen rising 13 percent to Rs 1,190 crore versus Rs 1,053 crore (YoY).
• Gross non-performing assets seen coming at 2.1 percent as a percentage of total advances.
• Net non-performing assets seen coming at 0.8 percent as a percentage of total advances.

Shares of the Mumbai-based private lender fell as much as 3.44 percent to Rs 56.20 after it allotted 82.76 crore shares to Life Insurance Corporation of India at Rs 60.73 each, thereby completing the insurer’s 51 percent stake purchase in the bank, IDBI Bank said in a stock exchange filing.

• IDBI board has also approved reclassification of LIC as promoter or main shareholder of the bank
• On Dec. 28, IDBI allotted 2.39 billion shares to LIC, raising Rs 14,500 crore.
• On Nov. 14, IDBI said Life Insurance Corporation of India will inject a total of Rs 20,000crore in the bank.
• Meanwhile, Rakesh Sharma will continue as CEO until new CEO is found.

Shares of the Mumbai-based advanced pharmaceutical ingredients maker rose as much as 12.58 percent, the most since June 2018, to Rs 166.90 on the back of heavy volumes.

Trading volume was more than 14 times its 20-day average, according to data compiled by Bloomberg.

As many as 5.72 lakh shares changed hands on the BSE compared with an average of 1.75 lakh shares traded daily in the past two weeks, as per information on BSE's website.

Shares of the Bengaluru-based communication equipment maker rose as much as 10.17 percent to Rs 115 after its signed purchase order worth Rs 1,011.41 crore, ITI said in an exchange filing.

ITI signed contract with Gujarat Fibre Grid Network for implementing BharatNet Phase II project in Gujarat. Of the total order, Rs 190 crore is towards operation and maintenance for three years.

Shares of the Kerala-based private sector lender fell as much as 8.36 percent, the most in four months, to Rs 14.25 after its non-performing assets rose in December quarter.

Key earnings highlights:

• Net interest income up 2.2 percent at Rs 520 crore versus Rs 509 crore
• Net profit down 27 percent at Rs 83.85 crore versus Rs 115 crore
• Gross non-performing assets as a percentage of total advances at 4.88 percent versus 4.61 percent (QoQ)
• Net non-performing assets as a percentage of total advances at 3.54 percent versus 3.16 percent (QoQ)

Shares of the country’s largest pharmaceutical company rose as much as 3.8 percent to Rs 405.75. The stock fell 13 percent intraday on Friday, its biggest drop since May 2017.

The foreign institutional investors trim stake in Sun Pharma during the December quarter, while the domestic mutual funds and financials institutions were buyers, according to Bombay Stock Exchange data. Insurance behemoth LIC trims stake marginally.

The stock was the second best performer on Sensex and Nifty.

Shares of DCB Bank fell as much as 7 percent, the most since Sept. 21, to Rs 172.50.

The lender said that had no direct dealing with scam-hit NSEL nor has it provided loan or financing for NSEL transactions done by its customers, according to its stock exchange filing. The bank added that it had entered into a referral agreement with IICL to provide its customers access to commodity trading across exchanges.

The clarification from DCB Bank comes after a Hindu Businessline report suggested DCB Bank and brokerage India Infoline Commodity acted in concert with NSEL in misselling their fraudulent financial products.

Shares of the Bengaluru-based software developer fell as much as 3.2 percent to Rs 335.

The information technology company’s profit for the three months ended December topped analysts estimates. (more details here). Besides, the company also issue bonus shares in the proportion of 1:3.

Key earnings highlights (Q3, QoQ)

• Dollar revenue up 1.8 percent at $2,046.5 million.
• Revenue up 3.4 percent at Rs 15,059 crore.
• Net Profit up 34.9 percent at Rs 2,544 crore.
• EBIT up 43 percent at Rs 2,775.7.
• Margin at 18.4 percent versus 13.3 percent.

Macquarie

• Maintained ‘Outperform’; hiked price target to Rs 360 from Rs 350.
• December quarter results was around the margin beat; expect margin normalisation to continue.
• Revenue growth to remain below industry due to uncertainty in the healthcare business.
• Hike EPS estimates for FY19-21 by 1-2 percent.

CLSA

• Maintained ‘Sell’; hiked price target to Rs 295 from Rs 285.
• Successive sharp margin beat led by PDD reversal and subcontractor decline.
• Hike EPS estimates for FY19-21 by 4-6 percent.
• Retain Sell given lack of convincing growth acceleration.

Motilal Oswal

• Maintained ‘Neutral’; hiked price target to Rs 385 from Rs 350.
• Improving gradually on revenues, steadfastly on margins.
• Q4 guidance factors in macro uncertainty.
• Hike EPS estimates for the next two financial years by 5 percent.

Shares of the Mumbai-based lender fluctuated between gains and losses to trade a little changed at Rs 2,129.55.

The bank’s profit rose 20.3 percent on a yearly basis to Rs 5,585.9 crore during the three months ended December, according to its stock exchange filing (Read the full story here)

Key earnings highlights (Q3, YoY)

• Net interest income up 21.9 percent to Rs 1,2576 crore.
• Net profit up 20.3 percent to Rs 5,585.9 crore.
• Core net interest margin seen at 4.3 percent.
• GNPA at 1.38 percent versus 1.33 percent (QoQ).
• Net NPA at 0.42 percent versus 0.40 percent (QoQ).

Here’s what analysts had to say after the company announced its quarterly results:

JPMorgan

• Maintained ‘Overweight’ with a price target of Rs 2,400.
• December quarter review: in-line earnings; loan growth at 24 percent remains solid.
• Term deposit strategy paying off well.
• Overall asset quality steady; Agri showing some stress.

Edelweiss

• Maintained ‘Buy’; hiked price target to Rs 2,530 from Rs 2,454.
• Core operating performance strong, but asset quality slips a tad.
• GNPL rose to 1.38 percent, with slippages higher at 2.1 percent, largely impacted by agri segment.
• Due to challenges in operating environment, expect a flight to safety in favour of private banks.

Emkay

• Maintained ‘Buy’; hiked price target to Rs 2,600 from Rs 2,500.
• Healthy margins/fees; falling cost-to-income ratios.
• Marginally higher NPAs due to farm-loan waivers.
• Bank expects farm loan NPAs to remain high in run-up to general elections.

Shares of the country’s largest construction company declined for the second day and fell as much as 3.4 percent, the most since in over three months to Rs 1,273.45, its lowest levels since Oct. 31.

The Securities and Exchange Board of India adviced L&T against Rs 9,000 crore buyback offer since the debt ratio after buyback would be more than twice capital & reserves. The company had proposed to buyback 610 lakh shares at price of Rs 1,475 apiece. (More details here)

Here’s what analysts had to say after SEBI rejected L&T’s buyback plans:

CLSA

• SEBI rejects buyback; no set-back to ROE expansion.
• Believe the regulator is mistaken in looking at consolidated financials.
• Think L&T’s board could approve a one-time large dividend of Rs 53 per share this week.
• Recommend buying L&T as it is a good proxy for domestic capex.

JPMorgan

• Denial by SEBI on the technicality of leverage comes as a negative surprise.
• Hardly any leeway to scale down the buyback size; could fund buyback with E&A sale proceeds.
• Better than expected core P&L performance in Q3 may assuage worries around execution.

Indian equity benchmarks fluctuated between gains and losses in the open after rallying for four trading sessions.

The S&P BSE Sensex Index rose a little changed at 36,403.48 as of 9:17 a.m. and the NSE Nifty 50 Index traded at 10,898.

The market breadth was tilted in favour of buyers. About 730 stocks advanced and 551 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Pharma Index’s 0.42 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral lower, down 0.34 percent.

The Indian rupee weakened for the second trading session against the U.S. dollar. The home currency depreciated as much 0.3 percent to 71.4 against the greenback.

Indian bonds may extend last week's losses, hurt by Reserve Bank of India governor Shaktikanta Das’s comments late on Friday that core inflation was sticky and blurred the assessment for policy.

His comments come just weeks before the RBI's six member monetary policy committee is due to meet for the first time under his chairmanship. Das is widely considered to be a dove, but his comments that inflation excluding food and oil remaining stubborn at 6 percent despite a drop in headline inflation, could see traders pare expectations of a rate cut as early as February.

The yield on the most-traded 10-year debt rose five basis points to 7.60 percent on Friday and underwriters had to partly rescue a weekly debt sale as fiscal worries continue to weigh on bonds.

F&O Cues

• Nifty January futures closed trading at 10927, premium of 20 points.
• Max open interest for January series at 11,000 strike value call (open interest at 35.9 lakh shares).
• Max open interest for January series at 10,700 strike value put (open interest at 37.5 lakh shares).

Stocks In F&O Ban

• Adani Power
• Jet Airways

Put-Call Ratio

• Nifty PCR at 1.56 versus 1.52.
• Nifty Bank PCR at 1.14 versus 1.09.

On L&T Buyback

CLSA

• SEBI rejects buyback; no set-back to ROE expansion.
• Believe the regulator is mistaken in looking at consolidated financials.
• Think L&T’s board could approve a one-time large dividend of Rs 53 per share this week.
• Recommend buying L&T as it is a good proxy for domestic capex.

JPMorgan

• Denial by SEBI on the technicality of leverage comes as a negative surprise.
• Hardly any leeway to scale down the buyback size; could fund buyback with E&A sale proceeds.
• Better than expected core P&L performance in Q3 may assuage worries around execution.

On HDFC Bank

JPMorgan

• Maintained ‘Overweight’ with a price target of Rs 2,400.
• December quarter review: in-line earnings; loan growth at 24 percent remains solid.
• Term deposit strategy paying off well.
• Overall asset quality steady; Agri showing some stress.

Edelweiss

• Maintained ‘Buy’; hiked price target to Rs 2,530 from Rs 2,454.
• Core operating performance strong, but asset quality slips a tad.
• GNPL rose to 1.38 percent, with slippages higher at 2.1 percent, largely impacted by agri segment.
• Due to challenges in operating environment, expect a flight to safety in favour of private banks.

Emkay

• Maintained ‘Buy’; hiked price target to Rs 2,600 from Rs 2,500.
• Healthy margins/fees; falling cost-to-income ratios.
• Marginally higher NPAs due to farm-loan waivers.
• Bank expects farm loan NPAs to remain high in run-up to general elections.

On Wipro

Macquarie

• Maintained ‘Outperform’; hiked price target to Rs 360 from Rs 350.
• December quarter results was around the margin beat; expect margin normalisation to continue.
• Revenue growth to remain below industry due to uncertainty in the healthcare business.
• Hike EPS estimates for FY19-21 by 1-2 percent.

CLSA

• Maintained ‘Sell’; hiked price target to Rs 295 from Rs 285.
• Successive sharp margin beat led by PDD reversal and subcontractor decline.
• Hike EPS estimates for FY19-21 by 4-6 percent.
• Retain Sell given lack of convincing growth acceleration.

Motilal Oswal

• Maintained ‘Neutral’; hiked price target to Rs 385 from Rs 350.
• Improving gradually on revenues, steadfastly on margins.
• Q4 guidance factors in macro uncertainty.
• Hike EPS estimates for the next two financial years by 5 percent.

On SBI Life Insurance

Citi

• Maintained ‘Buy’; hiked price target to Rs 760 from Rs 700.
• December quarter review: Strong protection growth, persistency steady.
• Improving productivity of banca and agency channel should sustain growth.
• SBI Life made MTM provision for investment depreciation, which could reverse.

Emkay

• Maintained ‘Buy’ with a price target of Rs 830.
• New business powers strong December quarter show.
• Protection segment remains the key focus area.
• New bancassurance tie-ups to further strengthen distribution network.

More Calls

Citi on L&T Infotech

• Maintained ‘Buy’; hiked price target to Rs 2,100 from Rs 2,045.
• Strong December quarter; remains our top mid-cap pick.
• EBIT margin rose due to an increase in offshore mix and better utilisation.
• Premium valuations to sustain given strong visibility and good execution.

Citi on AU Small Finance

• Maintained ‘Sell’; hiked price target to Rs 535 from Rs 490.
• December quarter review: Healthy book growth, slower income.
• Growth from retail; margins down but incremental spreads rising.
• Non-interest income hitch; CASA ratio lower but more granular.

• Philips Carbon Black: FID FDS Mauritius sold 10.3 lakh shares or 0.60 percent equity at Rs 186.64 each.
• Pitti Engineering: Bank of Baroda sold 3.45 lakh shares or 1.16 percent equity at Rs 64.57 each.

Nifty Earnings To Watch

• Kotak Mahindra Bank

Other Earnings To Watch

• Bhageria Industries
• Gallantt Ispat
• HDFC Asset Management Company
• GHCL
• Hindustan Zinc
• Housing & Urban Development Corporation
• IRB InvIT Fund
• Just Dial
• L&T Finance Holdings
• Union Bank of India
• Zensar Technologies
• Supreme Petrochem
• Gallantt Ispat
• Sundaram Finance Holdings
• Sasken Technologies
• Pondy Oxides & Chemicals
• Monnet Ispat & Energy
• Kopran
• Coromandel International

Also Read: Lupin, Sun Pharma, Glenmark Recall Products In The U.S.

Earnings Reaction To Watch

Wipro (Q3, QoQ)

• Dollar revenue up 1.8 percent at $2046.5 million.
• Revenue up 3.4 percent at Rs 15,059 crore.
• Net Profit up 34.9 percent at Rs 2,544 crore.
• EBIT up 43 percent at Rs 2,775.7.
• Margin at 18.4 percent versus 13.3 percent.
• The company also announce bonus shares of one share for three shares held in the company.

Also Read: Q3 Results: Wipro Profit Beats Estimate, Announces Bonus Shares

Zee Learn (Q3, YoY)

• Revenue up 2.2 times at Rs 112.7 crore.
• Net profit up 80.5 percent at Rs 13.9 crore.
• Ebitda up 66.7 percent at Rs 30 crore.
• Margin at 26.6 percent versus 34.5 percent.
• Other Income of Rs 8.4 crore.

SBI Life Insurance (Q3, YoY)

• Net Premium Income up 35 percent at Rs ,9141.3 crore.
• Net Profit up 15 percent at Rs 264 crore.

ICICI Lombard General Insurance (Q3, YoY)

• Gross Direct Premium Income up 25.9 percent at Rs 3,699 crore.
• Net Profit up 3.2 percent at Rs 239 crore.

South Indian Bank (Q3, YoY)

• Net interest income up 2.2 percent at Rs 520 crore versus Rs 509 crore
• Net profit down 27 percent at Rs 83.85 crore versus Rs 115 crore
• Gross non-performing assets as a percentage of total advances at 4.88 percent versus 4.61 percent (QoQ)
• Net non-performing assets as a percentage of total advances at 3.54 percent versus 3.16 percent (QoQ)

Omax Autos (Q3, YoY)

• Revenue down 26.5 percent at Rs 227.18 crore.
• Net profit at Rs 1.58 crore versus net loss of Rs 1.49 crore.
• Ebitda up 17.5 percent at Rs 11.4 crore.
• Margin at 5 percent versus 3.1 percent.
• Deferred tax credit of Rs 245 crore for the quarter under review.

HDFC Bank (Q3, YoY)

• Net interest income up 21.9 percent to Rs 1,2576 crore.
• Net profit up 20.3 percent to Rs 5585.9 crore.
• Core net interest margin seen at 4.3 percent.
• GNPA at 1.38 percent versus 1.33 percent (QoQ).
• Net NPA at 0.42 percent versus 0.40 percent (QoQ).

Also Read: Q3 Results: HDFC Bank’s Profit Meets Estimates

• JSW Steel and the U.S.-based diversified Harsco Corporation entered into a 10-year agreement to provide a range of mill services. Under the contract, Harsco will provide on site slag handling services to JSW plant in Maharashtra’s Dovili. (Bloomberg News)
• The Securities and Exchange Board of India adviced L&T against Rs 9,000 crore buyback offer since the debt ratio after buyback would be more than twice capital & reserves. The company had proposed to buyback 610 lakh shares at price of Rs 1,475 apiece.
• Welspun Enterprises said that it has achieved financial closure for a four-lane road project in Maharashtra for bid cost of Rs 1,048 crore. The company said that NHAI has declared the appointed date for this project as Jan, 16.
• MOIL signed a memorandum of understanding with the Gujarat Mineral Development to take up joint exploration of manganese bearing area and to conduct mining operations in Gujarat. The company also plans to set up a value addition plant in Gujarat with proposed investment of Rs 250 crore.
• Vascon Engineers’ board approved to raise Rs 110 crore via non-convertible debentures which will be used to retire existing loan of Rs 83 crore with ECL Finance.
• MPS approved investment of Rs 40 crore in its wholly owned arm MPS Interactive Systems.
• IDFC First Bank: The Reserve Bank of India approved V Vaidyanathan as managing director, chief executive officer of the bank for three years with effect from Dec. 19 2018.
• Hari Mundra resigned as the non-executive director of Ceat with effect from Jan. 29.
• Vodafone Idea’s board to meet on Jan. 23 to consider fund raising. The company had earlier formed a committee to evaluate fund raising of up to Rs 25,000 crore via equity. The fund raising is expected to complete before March 2019.
• Reliance Infrastructure’s subsidiary Delhi Airport Metro Express Private Limited (DAMEPL) to move to Supreme Court against the arbitration award in the matter of Delhi Metro Rail Corporation (DMRC).
• ITI signed a purchase order contract with Gujarat Fibre Grid Network Ltd. (GFGNL), worth Rs 1,011.41 crore to be completed in one year, for implementing BharatNet Phase II project in Gujarat. Of the total order, Rs 190 crore is towards operation and maintenance for three years.
• SBI: Hitachi has accepted to acquire 26 percent equity in SBI Payment Services Private Limited.

• The Bloomberg Commodity Index gained 1.2 percent Friday to a five-week high.
• Brent crude traded 0.43 percent lower at $62.43 per barrel.
• West Texas Intermediate crude slipped 0.8 percent to $53.39 a barrel.

Also Read: Oil Hasn’t Started a Year This Hot Since the Turn of the Century

London Metal Exchange

• Aluminium ended 0.65 percent higher.
• Tin ended higher for the second day, up 0.19 percent.
• Nickel halted a two-day blip, up 1.98 percent.
• Copper ended higher for the fourth day, up 1 percent.
• Lead ended 1.78 percent higher.
• Zinc ended higher for the third day, up 1.3 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.15 percent to 10,951 as of 8:10 a.m.

Asian stocks built on their January rally as investors demonstrated continued confidence that trade tensions ultimately will subside and policy makers will refrain from growth-damaging monetary tightening.

Shares in Tokyo, Hong Kong and Sydney climbed after the S&P 500 Index hit its highest since early December on Friday.

Short on time? well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell podcast.