Headline shares of the Asia Pacific share market declined on Tuesday, 14
January 2014, as investors cashing away recent profit off the table on
tracking steep fall in the Wall Street overnight and on concerns whether
earnings would justify high valuations of shares after last year's
market rally. The MSCI Asia Pacific Index retreated 1.4%, poised for its
largest drop since Sept 30.
Investor sentiment was dampened after U.S. stocks had their worst day so far this year, with major Wall Street benchmarks all dropping more than 1%. US stocks tumbled overnight on caution ahead of corporate results, as mounting negative pre-announcements left a lacklustre profit growth outlook. The Dow Jones industrial average fell 179 points, the worst one-day point drop in more than three months. The S&P 500 and the Nasdaq were both down more than 1%
Markets have also been perturbed by hawkish comments from Atlanta Federal Reserve President Dennis Lockhart, raising the prospect of ongoing reductions in economic stimulus despite the weak jobs report and concerns relating to the U.S. earnings season. Dennis Lockhart said Monday he would support further cuts "over the course of this year" if the economy continued to improve.
Among Asian bourses, shares of the Japan's share market tumbled, as investors took their cues from a big sell-off in the US. Risk off selling also hit as the U.S. dollar fell to around the 103-level against the yen, weaker than its level compared with the end of last week. The benchmark Nikkei Stocks Average tanked 3.08% to finish the session at 1422.40, while broader Topix index dropped or 2.26% to 1269.08.
Tokyo stock trading was closed Monday for a holiday. Investors were getting their first chance since Friday to react to the U.S. jobs report, which showed December hiring slowed sharply, as well as the movement in the yen, which has risen strongly since last week.
The Japanese yen softened from prior day closure against US dollar and other major peers on Tuesday after Japan notched a record current-account deficit, and ahead of a reading of U.S. retail sales that may provide insight into what's been an uneven recovery for the world's largest economy. Around late afternoon, the US dollar traded at 103.41 yen, up from 102.91 yen late Monday in North America.
The Ministry of Finance said on Tuesday that deficit in the current account stood at 592.8 billion yen before seasonal adjustment in November, as a weaker yen pushed up import costs but failed to give a strong enough boost to exporters. That is the biggest deficit on record since comparable data became available in 1985.
In Australia, shares of the Sydney market stumbled, dragging the benchmark S&P/ASX 200 index down 1.5% to 5212 on Tuesday, 14 January 2014, joining Asian markets in a sea of red. All sectors struggled, with hefty losses witnessed in the consumer discretionary, information technologies, financial, industrial and mining industry.
Shares of consumer goods makers and retailers had worst showing, with Woolworths' shares losing 1.3% of their value to close at A$33.75. Wesfarmers closed 1.8% lower at A$42.85.
Australia's financials stocks were weak, with Commonwealth Bank down 1.6% to $75.8, Australia & New Zealand Banking Group 1.7% to A$30.79, National Australia Bank 2% to A$3357 and Westpac Banking Corp 1.6% to A$31.51. Bendigo Bank (BEN) shed 1.7% to A$11.69 and Bank of Queensland 3.7% to A$11.85.
Shares of miners declined. Australia's biggest resource company, BHP Billiton (BHP) lost 1.15% to A$36.14 and the smaller Rio Tinto (RIO) eased by 0.25% to A$63.35. Fortescue Metals rose 0.2% to A$5.15. Oz Minerals dropped 2.23% to A$3.07, while Forge Group tanked 18% to A$1.03 after issuing a profit warning.
Australian dollar declined from yesterday closure against greenback and other major currencies on Tuesday as concerns about the health of the US economy faded. Around late afternoon, the Australian dollar was quoted at 0.9029 against US dollar.
Before the local market opened, the Australian dollar had hit US90.88¢, lifted by a weakening US dollar after weaker-than-expected employment data spurred fears that the American economy was not yet out of the woods. However, comments from US Federal Reserve officials highlighting that the central bank would not base its decision to taper its $85 billion bond buying program by $10 billion on just one month's data, helped the US dollar to a modest gain against the Aussie.
Also supporting the US dollar, was Treasury data showing the American government's budget deficit was $111 billion lower for the first quarter of the fiscal year, which began in October, when compared with the corresponding period a year earlier. It drops by more than one third to $182 billion, according to the Congressional Budget office.
In China, key benchmark indices of the China's stock market rebounded from 5-month low as investors chased for bargain buying across the counters on speculation valuations reached the cheapest levels after steep slump early this month and last year's. The benchmark Shanghai Composite index provisionally closed 0.86% higher at 2026.84, rebounding from its lowest level since July 31.
The Shanghai index has slumped 4.2% in 2014 amid concern the resumption of initial public offerings will divert funds, extending 2013's 6.75% decline which fell amid concern slowing economic growth will hurt profits.
Shares of automaker went higher on report cited the People's Liberation Army as saying the military must buy domestic-brand vehicles. FAW Car, which makes cars with Volkswagen AG, rose 5.1% to 10.35 yuan. Anhui Jianghuai Automobile Co., a unit of the biggest light-truck exporter, added 4.2% to 7.90 yuan.
In Hong Kong, shares in city's benchmark index declined for the first time in three sessions , as investor worries ahead of the US earnings season reverberated across global stocks.
The benchmark Hang Seng Index provisionally closed 97.48 points, or 0.43%, down at 22791.28. The benchmark HSI index opened lower on weaker US markets. It later reversed the downward trend on the rebound of A-share market. But the index saw its losses widen in afternoon trade.
Among the HK 50 blue chips, 18 rose and 30 fell, with two stocks remaining steady. Tingyi (00322) became the top blue-chip loser, dipping 2.5% to HK$21.6. Want Want (00151) also softened 1.9% to HK$10.58. China Life (02628) added 1.8% to HK$22.45, becoming the biggest blue-chip gainer in the day.
Great Wall Motor (02333), China's biggest sport utility vehicle maker, plunged 12.2% to HK$34.45 after the company announced a delay of its launch of H8 due to technical problems.
TCL Multimedia (01070) slid 6.5% to HK$3.18 as the company issued profit warning. The company expects to record a substantial drop in the profit for the year ended 31 December 2013 as compared to the previous financial year and may even incur a loss for the relevant period. Such decline in profit was primarily attributable to the sales volume in the PRC in the reporting period did not meet the target and product structure improvement did not progress as expected, the decreased prices of raw materials causing the devaluation of corresponding inventory, and quality issues of an outside supplier for panels of specific size resulted in an additional increase in cost and after-sales service fee.
In India, key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade. The market breadth, indicating the overall health of the market, was negative. At 14:20 IST, the S&P BSE Sensex was down 102.91 points or 0.49% to 21,031.30.
Among the 30-share Sensex pack, 23 stocks fell and rest of them rose. Tata Steel (down 2.58%), Sesa Sterlite (down 1.61%), and TCS (down 1.5%), edged lower from the Sensex pack.
Shares of pharmaceutical major Ranbaxy Laboratories extended Monday's losses triggered by the company's announcement that the US Food and Drug Administration found possible violations at the generic-drug maker's active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India. The stock was off 2.25%. The stock had fallen 5.42% on Monday, 13 January 2014, after the company said it has received the form 483 with certain observations as a result of the recent US FDA inspection at its active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India. An FDA Form 483 is issued when an investigator observes conditions that might constitute a violation of the FDA's rules or standards.
Bank of India lost 1.18%. The bank said after market hours on Monday, 13 January 2014, its board will meet on 17 January 2014 to consider interim dividend, if any, for the financial year ending March 2014. The bank has set 24 January 2014 as the record date for the purpose of determining the shareholders eligible to receive interim dividend.
The rate of Indian inflation based on the combined consumer price index (CPI) of urban and rural India slowed to 9.87% in December 2013, from 11.16% in November 2013, data released by the government after trading hours on Monday, 13 January 2014, showed. The moderation was largely driven by a fall in vegetable prices, which cooled nearly 19% from November on improved supplies. That helped slow down annual food inflation to 12.16% last month from 14.72% in November. The core CPI inflation excluding the volatile food and fuel prices, edged up to 8.05% in December 2013, from 7.97% in November 2013.
Inflation based on the wholesale price index (WPI) is seen easing up a bit at 7.1% in December 2013, from 7.52% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. WPI had accelerated to 7.52% in November 2013, from 7% in October 2013. The government will unveil WPI data for December 2013 at 12 noon tomorrow, 15 January 2014.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index sank 0.7%. Indonesia's Jakarta Composite index added 3.2%. South Korea's KOSPI eased 0.15%. Taiwan's Taiex index lost 0.21%. Malaysia's KLSE Composite climbed up 0.46%. Singapore's Straits Times index shed 0.37%.
Investor sentiment was dampened after U.S. stocks had their worst day so far this year, with major Wall Street benchmarks all dropping more than 1%. US stocks tumbled overnight on caution ahead of corporate results, as mounting negative pre-announcements left a lacklustre profit growth outlook. The Dow Jones industrial average fell 179 points, the worst one-day point drop in more than three months. The S&P 500 and the Nasdaq were both down more than 1%
Markets have also been perturbed by hawkish comments from Atlanta Federal Reserve President Dennis Lockhart, raising the prospect of ongoing reductions in economic stimulus despite the weak jobs report and concerns relating to the U.S. earnings season. Dennis Lockhart said Monday he would support further cuts "over the course of this year" if the economy continued to improve.
Among Asian bourses, shares of the Japan's share market tumbled, as investors took their cues from a big sell-off in the US. Risk off selling also hit as the U.S. dollar fell to around the 103-level against the yen, weaker than its level compared with the end of last week. The benchmark Nikkei Stocks Average tanked 3.08% to finish the session at 1422.40, while broader Topix index dropped or 2.26% to 1269.08.
Tokyo stock trading was closed Monday for a holiday. Investors were getting their first chance since Friday to react to the U.S. jobs report, which showed December hiring slowed sharply, as well as the movement in the yen, which has risen strongly since last week.
The Japanese yen softened from prior day closure against US dollar and other major peers on Tuesday after Japan notched a record current-account deficit, and ahead of a reading of U.S. retail sales that may provide insight into what's been an uneven recovery for the world's largest economy. Around late afternoon, the US dollar traded at 103.41 yen, up from 102.91 yen late Monday in North America.
The Ministry of Finance said on Tuesday that deficit in the current account stood at 592.8 billion yen before seasonal adjustment in November, as a weaker yen pushed up import costs but failed to give a strong enough boost to exporters. That is the biggest deficit on record since comparable data became available in 1985.
In Australia, shares of the Sydney market stumbled, dragging the benchmark S&P/ASX 200 index down 1.5% to 5212 on Tuesday, 14 January 2014, joining Asian markets in a sea of red. All sectors struggled, with hefty losses witnessed in the consumer discretionary, information technologies, financial, industrial and mining industry.
Shares of consumer goods makers and retailers had worst showing, with Woolworths' shares losing 1.3% of their value to close at A$33.75. Wesfarmers closed 1.8% lower at A$42.85.
Australia's financials stocks were weak, with Commonwealth Bank down 1.6% to $75.8, Australia & New Zealand Banking Group 1.7% to A$30.79, National Australia Bank 2% to A$3357 and Westpac Banking Corp 1.6% to A$31.51. Bendigo Bank (BEN) shed 1.7% to A$11.69 and Bank of Queensland 3.7% to A$11.85.
Shares of miners declined. Australia's biggest resource company, BHP Billiton (BHP) lost 1.15% to A$36.14 and the smaller Rio Tinto (RIO) eased by 0.25% to A$63.35. Fortescue Metals rose 0.2% to A$5.15. Oz Minerals dropped 2.23% to A$3.07, while Forge Group tanked 18% to A$1.03 after issuing a profit warning.
Australian dollar declined from yesterday closure against greenback and other major currencies on Tuesday as concerns about the health of the US economy faded. Around late afternoon, the Australian dollar was quoted at 0.9029 against US dollar.
Before the local market opened, the Australian dollar had hit US90.88¢, lifted by a weakening US dollar after weaker-than-expected employment data spurred fears that the American economy was not yet out of the woods. However, comments from US Federal Reserve officials highlighting that the central bank would not base its decision to taper its $85 billion bond buying program by $10 billion on just one month's data, helped the US dollar to a modest gain against the Aussie.
Also supporting the US dollar, was Treasury data showing the American government's budget deficit was $111 billion lower for the first quarter of the fiscal year, which began in October, when compared with the corresponding period a year earlier. It drops by more than one third to $182 billion, according to the Congressional Budget office.
In China, key benchmark indices of the China's stock market rebounded from 5-month low as investors chased for bargain buying across the counters on speculation valuations reached the cheapest levels after steep slump early this month and last year's. The benchmark Shanghai Composite index provisionally closed 0.86% higher at 2026.84, rebounding from its lowest level since July 31.
The Shanghai index has slumped 4.2% in 2014 amid concern the resumption of initial public offerings will divert funds, extending 2013's 6.75% decline which fell amid concern slowing economic growth will hurt profits.
Shares of automaker went higher on report cited the People's Liberation Army as saying the military must buy domestic-brand vehicles. FAW Car, which makes cars with Volkswagen AG, rose 5.1% to 10.35 yuan. Anhui Jianghuai Automobile Co., a unit of the biggest light-truck exporter, added 4.2% to 7.90 yuan.
In Hong Kong, shares in city's benchmark index declined for the first time in three sessions , as investor worries ahead of the US earnings season reverberated across global stocks.
The benchmark Hang Seng Index provisionally closed 97.48 points, or 0.43%, down at 22791.28. The benchmark HSI index opened lower on weaker US markets. It later reversed the downward trend on the rebound of A-share market. But the index saw its losses widen in afternoon trade.
Among the HK 50 blue chips, 18 rose and 30 fell, with two stocks remaining steady. Tingyi (00322) became the top blue-chip loser, dipping 2.5% to HK$21.6. Want Want (00151) also softened 1.9% to HK$10.58. China Life (02628) added 1.8% to HK$22.45, becoming the biggest blue-chip gainer in the day.
Great Wall Motor (02333), China's biggest sport utility vehicle maker, plunged 12.2% to HK$34.45 after the company announced a delay of its launch of H8 due to technical problems.
TCL Multimedia (01070) slid 6.5% to HK$3.18 as the company issued profit warning. The company expects to record a substantial drop in the profit for the year ended 31 December 2013 as compared to the previous financial year and may even incur a loss for the relevant period. Such decline in profit was primarily attributable to the sales volume in the PRC in the reporting period did not meet the target and product structure improvement did not progress as expected, the decreased prices of raw materials causing the devaluation of corresponding inventory, and quality issues of an outside supplier for panels of specific size resulted in an additional increase in cost and after-sales service fee.
In India, key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade. The market breadth, indicating the overall health of the market, was negative. At 14:20 IST, the S&P BSE Sensex was down 102.91 points or 0.49% to 21,031.30.
Among the 30-share Sensex pack, 23 stocks fell and rest of them rose. Tata Steel (down 2.58%), Sesa Sterlite (down 1.61%), and TCS (down 1.5%), edged lower from the Sensex pack.
Shares of pharmaceutical major Ranbaxy Laboratories extended Monday's losses triggered by the company's announcement that the US Food and Drug Administration found possible violations at the generic-drug maker's active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India. The stock was off 2.25%. The stock had fallen 5.42% on Monday, 13 January 2014, after the company said it has received the form 483 with certain observations as a result of the recent US FDA inspection at its active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India. An FDA Form 483 is issued when an investigator observes conditions that might constitute a violation of the FDA's rules or standards.
Bank of India lost 1.18%. The bank said after market hours on Monday, 13 January 2014, its board will meet on 17 January 2014 to consider interim dividend, if any, for the financial year ending March 2014. The bank has set 24 January 2014 as the record date for the purpose of determining the shareholders eligible to receive interim dividend.
The rate of Indian inflation based on the combined consumer price index (CPI) of urban and rural India slowed to 9.87% in December 2013, from 11.16% in November 2013, data released by the government after trading hours on Monday, 13 January 2014, showed. The moderation was largely driven by a fall in vegetable prices, which cooled nearly 19% from November on improved supplies. That helped slow down annual food inflation to 12.16% last month from 14.72% in November. The core CPI inflation excluding the volatile food and fuel prices, edged up to 8.05% in December 2013, from 7.97% in November 2013.
Inflation based on the wholesale price index (WPI) is seen easing up a bit at 7.1% in December 2013, from 7.52% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. WPI had accelerated to 7.52% in November 2013, from 7% in October 2013. The government will unveil WPI data for December 2013 at 12 noon tomorrow, 15 January 2014.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index sank 0.7%. Indonesia's Jakarta Composite index added 3.2%. South Korea's KOSPI eased 0.15%. Taiwan's Taiex index lost 0.21%. Malaysia's KLSE Composite climbed up 0.46%. Singapore's Straits Times index shed 0.37%.
