Asia Pacific share market declined on Friday, 18 July 2014, on the back
of global selloff in risk assets amid escalating tension in Ukraine and
the Middle East. The MSCI Asia Pacific Index dropped 0.3%.
Risk aversion sell-off triggered across the regional markets in the wake of geopolitical risks in Eastern Europe and the Middle East. Sentiments took a hit after news that a Malaysian passenger plane had crashed in Ukraine near the Russian border, killing all 298 people on board. The government in Kiev said pro-Russian rebels were behind the attack, while the separatists denied the accusation and Russian President Vladimir Putin blamed the Ukrainian government.
Adding to the geopolitical tensions, Israel invaded the Gaza strip. The invasion comes after Palestinians launched rocket attacks on Israel and Israeli aerial sorties killed more than 200 Gaza residents.
On a market level, both events prompted a move into safer assets and away from equities.
Markets sentiments were also rocked by the escalated sanctions against Russia. The US, after close consultation with the EU, imposed restrictions on the Russian state-controlled oil giant OAO Rosneft and other big companies aiming to crippled Russia's economy and financial system. US President Obama said the sanctions were significant and targeted to have maximum impact on Russia. EU said it would pause lending for new public sector projects in Russia by the European Investment Bank. EU leaders would also consider sanctions on individuals or entities that actively provide material or financial support to the Russian decision-makers responsible for the annexation of Crimea or the destabilization of eastern Ukraine.
Among Asian bourses
Australia market ends in green
Australian stock market closed higher after recouping lost ground, thanks to strength in bullion, lender and property trust stocks that helped to overshadow losses elsewhere. The benchmark S&P/ASX 200 Index rose 9.30 points, or 0.17% to 5531.70, while the broader All Ordinaries Index added 9.30 points, or 0.17%, to 5519.20. The S&P/ASX 200 Index and the broader All Ordinaries Index each rose 0.8% over the past week.
Financial stocks closed higher, with top four lenders leading rally. Commonwealth Bank advanced 0.1% to A$81.27, Westpac 0.8% to A$33.90, ANZ Banking Corp 0.6% to A$33.42 and National Australia Bank 0.5% to A$34.18.
Energy stocks finished mostly higher. Oil and gas producer Woodside Petroleum (WPL) was up 0.79% to A$42.20, adding to yesterday's gains following a solid quarterly production report. Origin Energy added 0.4% to A$14.25. Shares of Santos sank 0.4% to A$14.15 despite showing revenue lifted 25% in the June quarter after commencing shipments from its project in Papua New Guinea.
Asciano (AIO) closed 4% higher today after AIO Management said ´´it has been and continues to be in talks to sell part, or parts, of its ports and logistics business but at present they have not agreed to anything.
Material and resources stocks closed lower, as profit taking following strong recent gain on solid quarterly production numbers and better than expected China GDP growth data for the June quarter. Resources giant BHP Billiton fell 0.4% to A$38.39, while Rio Tinto dropped 0.7% to A$64.29. Fortescue Metals Group shares sank 1.5% to A$4.59.
Nikkei tumbles amid geopolitical concerns
Japan share market declined for third consecutive day, as risk aversion sell-off across the board after yen appreciated against the greenback amid escalating tension in Ukraine and the Middle East. The Nikkei 225 index slipped 1%, or 154.55 points, to finish at 15215.71, while the Topix index of all first-section shares was down 0.79%, or 10.09 points, to 1263.29. For the week, the Nikkei added 0.3% and the Topix increased 0.7%.
Shares of exporters and other yen-sensitive companies were major drag on the Tokyo, as the weaker dollar erodes manufacturers' ability to price their good more competitively abroad. The yen fell 0.1% to 101.31 per dollar after surging 0.5% yesterday. Mazda Motor Corp., an automaker that gets 66% of its revenue overseas, slid 1.4% to 488 yen. Panasonic Corp., a maker of consumer electronics that gets about a half of its revenue abroad, declined 1.2% to 1,193 yen. Fanuc Corp. lost 0.8% to 17,150 yen and Kyocera Corp. dropped 1.3% to 4,868 yen.
Sharp Corp slid 2.1% to 321 yen on a report its quarter ended June net loss will exceed 10 billion yen ($99 million).
Energy explorers rose as West Texas Intermediate and Brent crude headed for the first weekly gain in a month. Inpex gained 1.6% to 1,569 yen and Japan Drilling Co. added 0.3% to 4,970 yen.
Shares of major Japanese carriers declined after news of the crash of a Malaysia Airlines plane in rebel-held eastern Ukraine. ANA Holdings Inc. declined 0.8% to 246 yen. Japan Airlines Co. shed 0.7% to 5,940 yen.
Fujitsu rose 1.8% to 782 yen on reports that the company has decided to withdraw from semiconductor manufacturing and will sell two factories over the next few years to Taiwanese and U.S. companies.
Shares of Yaskawa Electric gained 4.4% to 1,384 yen on the back of robust earnings results announced Thursday. Its April-June group net profit grew 32% to 4.47 billion yen from a year earlier. The firm expects to generate net income of 17.5 billion yen in the fiscal year ending in March 2015.
Yamaha Corp shares fell 3.8% to 1541 yen after SMBC Nikko Securities Inc trimmed musical instruments maker rating to underperform from neutral.
Yaskawa Electric Corp shares gained 4.4% to 1,384 yen after industrial robots maker reported that its quarterly net income jumped 33% to 4.5 billion yen from a year earlier. Goldman Sachs Group Inc. raised the stock's price target to 1,500 yen from 1,440 yen.
China stocks rise for the first time in three
Mainland China share market advanced for the first time in three consecutive days, led by property developer companies amid speculation of loosening property curbs as the housing market cooled. The benchmark Shanghai Composite advanced 3.48 points, or 0.17%, to 2059.07. Trading turnover increased to 82.51 billion yuan from yesterday's 79.10 billion yuan. For the week, the Shanghai benchmark index has accumulated 0.6%.
The National Bureau of Statistics said on Friday that new home prices in 55 of 70 major China's cities reporting month-on-month drops. Only eight cities saw month-on-month gains, down from 15 in May. The average home price in the 70 cities slipped 0.47% from the previous month, more than the 0.15-percent fall in May.
But gain on the upside was limited amid lingering concerns new share sales will divert funds from existing equities. The China Securities Regulatory Commission (CSRC) has allowed 12 initial public offerings that may freeze subscription funds of as much as 766.5 billion yuan ($124 billion). CSRC has allowed six firms to get listed on the Shanghai Stock Exchange and the rest on the Shenzhen exchange. The companies range from machinery makers to pharmaceutical firms.
Shares of realty companies advanced on speculation government would remove restrictions on home purchases after official data today showed prices fell in a record number of cities last month. The 21st Century Business Herald also reported that China's housing minister urged cities with large housing inventories to cut it with all means. Poly Real Estate gained 4.1%, while China Vanke added 3.3%.
Shares of distilleries were down. Kweichow Moutai Co., the biggest liquor maker, soared 4.7%. Wuliangye Yibin Co., the second-largest maker of baijiu liquor, jumped 3.1%.
Shanghai Beite Metal Works Co., an auto-parts maker, climbed 44% in its mainland debut.
Hong Kong stocks fall on Ukraine concerns
Hong Kong share market finished lower on geopolitical risks in Eastern Europe and the Middle East. The benchmark Hang Seng Index closed 66.08 points, or 0.28%, down at 235454.79. Turnover decreased to HK$48.72 billion from yesterday's HK$52.06 billion.
Among the HK 50 blue chips, 27 declined and 17 rose, with six stocks remaining steady.
Sands China (01928) continued its decline after releasing disappointing quarterly earnings. It sank 2.7% to HK$54.25, becoming the top blue-chip loser.
Shares of mainland realty companies advanced mid speculation more mainland cities will loosen property curbs after NBS announced that residential property prices rose modestly in June from year earlier, but on monthly basis, house prices decreased. COLI (00688) added 2% to HK$20.7. It was the top blue-chip gainer. CR Land (01109) was flat at HK$15.34. Sunac (01918) jumped 3.5% to HK$5.
Hydoo slumped 34% to HK$1.58 after saying its chairman has been unreachable since early this month. The trade-center operator resumed trading today after being halted from July 2.
Li Ning (2331) dropped 9.9% to HK$4.93 after saying it expects a first-half loss of at least 550 million yuan ($88.7 million). Credit Suisse Group AG and UBS AG cut their target prices on the company following the forecast.
Sensex, Nifty settles at 1-1/2 week high
Indian stock market closed higher for a fourth consecutive session, after Tata Consultancy Services' better-than-expected earnings sparked a rally in IT stocks and offset global concerns about the downing of a Malaysian airliner in Ukraine.
The sentiment was also boosted after provisional data showed that foreign portfolio investors made substantial purchases of Indian stocks on Thursday, 17 July 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1912.42 crore on Thursday, 17 July 2014, as per provisional data from the stock exchanges.
The S&P BSE Sensex was up 80.40 points or 0.31% to 25,641.56, while the CNX Nifty was up 23.45 points or 0.31% to 7,663.90, its highest closing level since 7 July 2014.
IT stocks were in demand on good Q1 earnings from Tata Consultancy Services (TCS) and weakness in rupee against the dollar. TCS surged after the company after trading hours on Thursday, 17 July 2014, reported good Q1 June 2014 result. Wipro gained after the company before market hours today, 18 July 2014 announced that it has entered into a strategic alliance with Alberta-based ATCO, one of Canada's premier corporations.
Zee Entertainment Enterprises (Zee) declined after reporting fall in Q1 consolidated net profit during market hours today, 18 July 2014.
PSU OMCs dropped as crude oil futures jumped amid Europe's worst geopolitical crisis since the end of the cold war. Shares of IDFC, which is in the process of converting into a bank and which has a large exposure to the infrastructure sector, hit 52-week high. Realty stocks declined.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.08% to 9400.97. South Korea's KOSPI index sank 0.07% to 2019.42. New Zealand's NZX50 dipped 0.07% to 5108.93. Malaysia's KLSE Composite was down 0.54% to 1872.97. Indonesia's Jakarta Composite Index rose 0.31% to 5087.01. Singapore's Straits Times index added 0.11% to 3310.53.
Risk aversion sell-off triggered across the regional markets in the wake of geopolitical risks in Eastern Europe and the Middle East. Sentiments took a hit after news that a Malaysian passenger plane had crashed in Ukraine near the Russian border, killing all 298 people on board. The government in Kiev said pro-Russian rebels were behind the attack, while the separatists denied the accusation and Russian President Vladimir Putin blamed the Ukrainian government.
Adding to the geopolitical tensions, Israel invaded the Gaza strip. The invasion comes after Palestinians launched rocket attacks on Israel and Israeli aerial sorties killed more than 200 Gaza residents.
On a market level, both events prompted a move into safer assets and away from equities.
Markets sentiments were also rocked by the escalated sanctions against Russia. The US, after close consultation with the EU, imposed restrictions on the Russian state-controlled oil giant OAO Rosneft and other big companies aiming to crippled Russia's economy and financial system. US President Obama said the sanctions were significant and targeted to have maximum impact on Russia. EU said it would pause lending for new public sector projects in Russia by the European Investment Bank. EU leaders would also consider sanctions on individuals or entities that actively provide material or financial support to the Russian decision-makers responsible for the annexation of Crimea or the destabilization of eastern Ukraine.
Among Asian bourses
Australia market ends in green
Australian stock market closed higher after recouping lost ground, thanks to strength in bullion, lender and property trust stocks that helped to overshadow losses elsewhere. The benchmark S&P/ASX 200 Index rose 9.30 points, or 0.17% to 5531.70, while the broader All Ordinaries Index added 9.30 points, or 0.17%, to 5519.20. The S&P/ASX 200 Index and the broader All Ordinaries Index each rose 0.8% over the past week.
Financial stocks closed higher, with top four lenders leading rally. Commonwealth Bank advanced 0.1% to A$81.27, Westpac 0.8% to A$33.90, ANZ Banking Corp 0.6% to A$33.42 and National Australia Bank 0.5% to A$34.18.
Energy stocks finished mostly higher. Oil and gas producer Woodside Petroleum (WPL) was up 0.79% to A$42.20, adding to yesterday's gains following a solid quarterly production report. Origin Energy added 0.4% to A$14.25. Shares of Santos sank 0.4% to A$14.15 despite showing revenue lifted 25% in the June quarter after commencing shipments from its project in Papua New Guinea.
Asciano (AIO) closed 4% higher today after AIO Management said ´´it has been and continues to be in talks to sell part, or parts, of its ports and logistics business but at present they have not agreed to anything.
Material and resources stocks closed lower, as profit taking following strong recent gain on solid quarterly production numbers and better than expected China GDP growth data for the June quarter. Resources giant BHP Billiton fell 0.4% to A$38.39, while Rio Tinto dropped 0.7% to A$64.29. Fortescue Metals Group shares sank 1.5% to A$4.59.
Nikkei tumbles amid geopolitical concerns
Japan share market declined for third consecutive day, as risk aversion sell-off across the board after yen appreciated against the greenback amid escalating tension in Ukraine and the Middle East. The Nikkei 225 index slipped 1%, or 154.55 points, to finish at 15215.71, while the Topix index of all first-section shares was down 0.79%, or 10.09 points, to 1263.29. For the week, the Nikkei added 0.3% and the Topix increased 0.7%.
Shares of exporters and other yen-sensitive companies were major drag on the Tokyo, as the weaker dollar erodes manufacturers' ability to price their good more competitively abroad. The yen fell 0.1% to 101.31 per dollar after surging 0.5% yesterday. Mazda Motor Corp., an automaker that gets 66% of its revenue overseas, slid 1.4% to 488 yen. Panasonic Corp., a maker of consumer electronics that gets about a half of its revenue abroad, declined 1.2% to 1,193 yen. Fanuc Corp. lost 0.8% to 17,150 yen and Kyocera Corp. dropped 1.3% to 4,868 yen.
Sharp Corp slid 2.1% to 321 yen on a report its quarter ended June net loss will exceed 10 billion yen ($99 million).
Energy explorers rose as West Texas Intermediate and Brent crude headed for the first weekly gain in a month. Inpex gained 1.6% to 1,569 yen and Japan Drilling Co. added 0.3% to 4,970 yen.
Shares of major Japanese carriers declined after news of the crash of a Malaysia Airlines plane in rebel-held eastern Ukraine. ANA Holdings Inc. declined 0.8% to 246 yen. Japan Airlines Co. shed 0.7% to 5,940 yen.
Fujitsu rose 1.8% to 782 yen on reports that the company has decided to withdraw from semiconductor manufacturing and will sell two factories over the next few years to Taiwanese and U.S. companies.
Shares of Yaskawa Electric gained 4.4% to 1,384 yen on the back of robust earnings results announced Thursday. Its April-June group net profit grew 32% to 4.47 billion yen from a year earlier. The firm expects to generate net income of 17.5 billion yen in the fiscal year ending in March 2015.
Yamaha Corp shares fell 3.8% to 1541 yen after SMBC Nikko Securities Inc trimmed musical instruments maker rating to underperform from neutral.
Yaskawa Electric Corp shares gained 4.4% to 1,384 yen after industrial robots maker reported that its quarterly net income jumped 33% to 4.5 billion yen from a year earlier. Goldman Sachs Group Inc. raised the stock's price target to 1,500 yen from 1,440 yen.
China stocks rise for the first time in three
Mainland China share market advanced for the first time in three consecutive days, led by property developer companies amid speculation of loosening property curbs as the housing market cooled. The benchmark Shanghai Composite advanced 3.48 points, or 0.17%, to 2059.07. Trading turnover increased to 82.51 billion yuan from yesterday's 79.10 billion yuan. For the week, the Shanghai benchmark index has accumulated 0.6%.
The National Bureau of Statistics said on Friday that new home prices in 55 of 70 major China's cities reporting month-on-month drops. Only eight cities saw month-on-month gains, down from 15 in May. The average home price in the 70 cities slipped 0.47% from the previous month, more than the 0.15-percent fall in May.
But gain on the upside was limited amid lingering concerns new share sales will divert funds from existing equities. The China Securities Regulatory Commission (CSRC) has allowed 12 initial public offerings that may freeze subscription funds of as much as 766.5 billion yuan ($124 billion). CSRC has allowed six firms to get listed on the Shanghai Stock Exchange and the rest on the Shenzhen exchange. The companies range from machinery makers to pharmaceutical firms.
Shares of realty companies advanced on speculation government would remove restrictions on home purchases after official data today showed prices fell in a record number of cities last month. The 21st Century Business Herald also reported that China's housing minister urged cities with large housing inventories to cut it with all means. Poly Real Estate gained 4.1%, while China Vanke added 3.3%.
Shares of distilleries were down. Kweichow Moutai Co., the biggest liquor maker, soared 4.7%. Wuliangye Yibin Co., the second-largest maker of baijiu liquor, jumped 3.1%.
Shanghai Beite Metal Works Co., an auto-parts maker, climbed 44% in its mainland debut.
Hong Kong stocks fall on Ukraine concerns
Hong Kong share market finished lower on geopolitical risks in Eastern Europe and the Middle East. The benchmark Hang Seng Index closed 66.08 points, or 0.28%, down at 235454.79. Turnover decreased to HK$48.72 billion from yesterday's HK$52.06 billion.
Among the HK 50 blue chips, 27 declined and 17 rose, with six stocks remaining steady.
Sands China (01928) continued its decline after releasing disappointing quarterly earnings. It sank 2.7% to HK$54.25, becoming the top blue-chip loser.
Shares of mainland realty companies advanced mid speculation more mainland cities will loosen property curbs after NBS announced that residential property prices rose modestly in June from year earlier, but on monthly basis, house prices decreased. COLI (00688) added 2% to HK$20.7. It was the top blue-chip gainer. CR Land (01109) was flat at HK$15.34. Sunac (01918) jumped 3.5% to HK$5.
Hydoo slumped 34% to HK$1.58 after saying its chairman has been unreachable since early this month. The trade-center operator resumed trading today after being halted from July 2.
Li Ning (2331) dropped 9.9% to HK$4.93 after saying it expects a first-half loss of at least 550 million yuan ($88.7 million). Credit Suisse Group AG and UBS AG cut their target prices on the company following the forecast.
Sensex, Nifty settles at 1-1/2 week high
Indian stock market closed higher for a fourth consecutive session, after Tata Consultancy Services' better-than-expected earnings sparked a rally in IT stocks and offset global concerns about the downing of a Malaysian airliner in Ukraine.
The sentiment was also boosted after provisional data showed that foreign portfolio investors made substantial purchases of Indian stocks on Thursday, 17 July 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1912.42 crore on Thursday, 17 July 2014, as per provisional data from the stock exchanges.
The S&P BSE Sensex was up 80.40 points or 0.31% to 25,641.56, while the CNX Nifty was up 23.45 points or 0.31% to 7,663.90, its highest closing level since 7 July 2014.
IT stocks were in demand on good Q1 earnings from Tata Consultancy Services (TCS) and weakness in rupee against the dollar. TCS surged after the company after trading hours on Thursday, 17 July 2014, reported good Q1 June 2014 result. Wipro gained after the company before market hours today, 18 July 2014 announced that it has entered into a strategic alliance with Alberta-based ATCO, one of Canada's premier corporations.
Zee Entertainment Enterprises (Zee) declined after reporting fall in Q1 consolidated net profit during market hours today, 18 July 2014.
PSU OMCs dropped as crude oil futures jumped amid Europe's worst geopolitical crisis since the end of the cold war. Shares of IDFC, which is in the process of converting into a bank and which has a large exposure to the infrastructure sector, hit 52-week high. Realty stocks declined.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.08% to 9400.97. South Korea's KOSPI index sank 0.07% to 2019.42. New Zealand's NZX50 dipped 0.07% to 5108.93. Malaysia's KLSE Composite was down 0.54% to 1872.97. Indonesia's Jakarta Composite Index rose 0.31% to 5087.01. Singapore's Straits Times index added 0.11% to 3310.53.
