Asia Pacific shares were mixed in quiet trade on Monday, 07 July 2014,
as investors withdrew some profit off the table following strong gain
last week and lack of cues from offshore market due to holiday in the
U.S on Friday.
Turnover was relatively thin across the region as market participants cautiously awaiting for the minutes from the Fed's June meeting this week to gauge the outlook for the central bank's future monetary policy.
Among Asian bourses
Profit booking takes toll on Tokyo shares
Japan share market finished first session of the week with red ink, as investors withdrew small profit off the table following strong gain last week and lack of cues from overseas markets. The benchmark Nikkei 225 index, which ended last week at its highest level since 23 January, declined 0.37% to finish at 15379.44. The Topix index of all first-section shares climbed 0.52% to 1285.24. The Topix index of all first-section shares was down 0.42% to 1279.87.
Investors were mostly retreated sideline on caution ahead of minutes from the Fed's June meeting and Japanese data this week. Among key data slated for release in the coming days are Japanese current account figures and machinery orders which could further cement hopes for a pickup in the world's number three economy.
Aeon, the nation's largest retailer, slumped 5.1% to 1,190 yen after reporting first-quarter profit tumbled 90% from a year earlier to 1.3 billion yen.
Convenience store operator Lawson ended up 0.4% after booking an operating profit rise of 18% on year to Y16.8 billion, beating its own projection by Y1.1 billion.
FamilyMart Co. jumped 4.6% to 1190 yen as trading house Itochu Corp. said it will increase its stake in the convenience-store operator to 37% between July 7 and March 31, up from 31.7%. Itochu slid 2.2% to 1,312 yen.
Pacific Metals slumped 2.9% to 535 yen on profit booking following last week an advance of 12%.
Office equipment retailer Askul surged 11% after the firm reported a first quarter operating profit of Y4.3 billion, down 38% on-year, but still ahead of its recently lowered guidance.
Australia stocks fall in quiet trade
Australian share market finished the session marginally down after fluctuating in and out of the neutral line, registering first fall in four consecutive sessions, due to lack of supporting cues from offshore market. The ASX sectors closed mostly down, with shares in materials, energy, industrials and healthcare sectors were biggest drags. The benchmark S&P/ASX200 and the broader All Ordinaries each grew 0.6% to 5525 and 5511.80, respectively.
Healthcare sector was biggest drag on the ASX today, with ResMed down by 0.3% to A$5.305 after Deustche Bank has downgraded the sleep technology company to hold. CSL declined by 0.7% to A$67.99 and Cohlear dropped 0.3% to A$61.89.
Shares of material and resources companies declined as profit taking after commodity prices finished mostly weaker on last Friday. Resources giant BHP Billiton added 0.3% to A$37.68, while Rio Tinto lost 0.5% to A$62.29 and junior iron ore miner Fortescue Metals Group was down 2.4% to A$4.57.
Wotif.com (WTF) shares climbed up 24.6% to A$3.29 after online travel business received A$700 million takeover bid by global player, Expedia. Expedia is an internet-based travel website started by Microsoft over a decade ago.
Nufarm shares climbed up 2.4% to A$4.64 after Citigroup has upgraded Nufarm to neutral from sell, citing confidence of a stronger balance sheet and chance for robust earnings growth in 2014-15. Nufarm's price target has been raised to $4.65 from $4.20.
Myer shares rose by 0.7% to A$2.205 after Credit Suisse has upgraded Myer to outperform from neutral saying it is cheap, has a good yield, and its financials are poised to improve. It has also raised its target price to A$2.40 from A$2.25.
China stocks fall on earnings concern
Mainland China shares closed mostly down, with small-cap companies leading losses after bearish comments from brokerage houses amid concern slowing economic growth will hurt earnings. The benchmark Shanghai Composite was 0.03% up from prior day to 2059.93.
Trading turnover decreased to 83.59 billion yuan from yesterday's 83.59 billion yuan.
Investor sentiments turned bearish on small cap companies after bearish statement from brokerage houses. CICC noted that China's small-company stocks will “lose steam” in the upcoming earnings season. UBS also stated in separate report that the small-caps rebound coming to an end with interim results likely to “undershoot” expectations.
Shares of technology stocks declined on profit booking. Leshi Internet Information & Technology dropped 2.5% to 43 yuan. Sanan Optoelectronics fell 8.4% to 14.23 yuan. Beijing Originwater Technology Co slid 5% to 27.15 yuan
Property developers stocks went up amid speculation some local governments may loosen home-purchase restrictions. China Vanke rose 3.4% to 8.76 yuan. Poly Real Estate Group Co added 2.2% to 5.14 yuan.
Shares of transportation equipment makers bumped up on demand growth hopes after the National Development and Reform Commission approved a plan to construct 436 kilometers of inter-city railways with a total investment of about 50 billion yuan ($8 billion). China Railway Group rose 1.6% to 2.62 yuan and China CNR advanced 3.7% to 4.83 yuan.
The National Development and Reform Commission has approved a 50 billion yuan (US$8.06 billion) plan to build an inter-city rail network in western Shaanxi Province as it looks to improve transport links in the country's less-developed inland region. The project will see the government invest in five projects to build 436km of rail lines across Shaanxi's Guanzhong region. Domestic media reported over the weekend that construction on 14 new railways with a combined length of 3,712km will start in the second half of the year, which will cost some 327.3 billion yuan in total
Hong Kong stocks end marginally down
Hong Kong share market closed marginally lower in quiet and narrow trade, as profit taking emerged amid lack of supporting cues from offshore bourses and as the benchmark index climbs to seven month high on Friday. The benchmark Hang Seng Index closed 0.02% down at 23540.92. Trading turnover decreased to HK$48.25 billion from yesterday's HK$53.55 billion.
Hong Kong's benchmark stock measure rebounded 11% through last week from this year's low in March as Chinese policy makers unveiled targeted measures to bolster growth.
Macau gaming players fell on profit booking following last week strong rally. Sands China declined 2% to HK$59.90, contributing 9-points losses to the benchmark Index and becoming the worst-performing blue chip. Galaxy Entertainment Group declined 1.2% to HK$65.65.
Sportwears counters were generally lower. Li Ning Co. tumbled 8.6% to HK$5.56 after Bank of America Corp.'s Merrill Lynch said the sportswear maker may report a first-half loss. Sport (01968) slipped 2% to HK$1.9. China Dongxiang (03818) fell 1.3% to HK$1.51. But Anta (02020) gained 2.4% to HK$12.94 after BofAML's target price hike.
Railway stocks advanced after the China Railway Corporation said railway infrastructure expenditure in the first five months of 2014 amounted to RMB136 billion, representing 22% of the full year budget. China Railway Group jumped 3.6% to HK$4. CSR Corp. rose 4.9% to HK$6.53.
Realty stocks went higher on reports many Chinese cities are studying to remove curbs on house purchase. COLI (00688) put on 1.7% to HK$20.65. CR Land (01109) added 1.6% to HK$15.4. China Vanke (02202) edged down 0.6% to HK$15.7 after hitting an intra-day high of HK$16.58.
Century Sage (01450) closed at HK$1.07, or 0.9% below its IPO price. Guorui Prop (02329) ended up 5% from its IPO price to HK$2.5. Link Holdings (08237) closed at HK$4.6, doubling its placing price.
Sensex closes record high above 26000
Indian stocks market closed at an all-time high today, on continued buying by foreign funds and retail investors in anticipation of a pragmatic budget. The 30-share BSE index Sensex provisionally closed up 138 points or 0.5% at 26100.08, while the 50-share NSE index Nifty was up 37.80 points or 0.5% to 7789.40.
Barring banking, oil & gas and metal, all other BSE sectoral indices were in the green. Among them, IT and TECk indices were the star-performers. Software exporters lead gains ahead of Infosys April-June earnings results on Friday.
Shares in IDFC surged after Morgan Stanley upgrades the stock to "overweight" from "underweight", citing its underperformance this year despite "good management, strong balance sheet, and diversified financial presence."
On the economic front, the Hong Kong Monetary Authority said on Monday that the official foreign currency reserve assets of Hong Kong amounted to US$320.9 billion as at the end of June 2014, up from US$320.2 billion at the end of May. There were no unsettled foreign exchange contracts both at end-June and end-May 2014. The total foreign currency reserve assets of US$320.9 billion represent over seven times the currency in circulation or about 49% of Hong Kong dollar M3.
Elsewhere in the Asia Pacific region- Taiwan's Taiex index was up 0.11% to 9520.20. South Korea's KOSPI index fell 0.23% to 2005.12.Malaysia's KLSE Composite added 0.44% to 1893.27. Singapore's Straits Times index rose 0.24% to 3280.14. New Zealand's NZX50 fell 0.05% to 5186.36. Indonesia's Jakarta Composite Index was up 1.34% to 4971.57.
Turnover was relatively thin across the region as market participants cautiously awaiting for the minutes from the Fed's June meeting this week to gauge the outlook for the central bank's future monetary policy.
Among Asian bourses
Profit booking takes toll on Tokyo shares
Japan share market finished first session of the week with red ink, as investors withdrew small profit off the table following strong gain last week and lack of cues from overseas markets. The benchmark Nikkei 225 index, which ended last week at its highest level since 23 January, declined 0.37% to finish at 15379.44. The Topix index of all first-section shares climbed 0.52% to 1285.24. The Topix index of all first-section shares was down 0.42% to 1279.87.
Investors were mostly retreated sideline on caution ahead of minutes from the Fed's June meeting and Japanese data this week. Among key data slated for release in the coming days are Japanese current account figures and machinery orders which could further cement hopes for a pickup in the world's number three economy.
Aeon, the nation's largest retailer, slumped 5.1% to 1,190 yen after reporting first-quarter profit tumbled 90% from a year earlier to 1.3 billion yen.
Convenience store operator Lawson ended up 0.4% after booking an operating profit rise of 18% on year to Y16.8 billion, beating its own projection by Y1.1 billion.
FamilyMart Co. jumped 4.6% to 1190 yen as trading house Itochu Corp. said it will increase its stake in the convenience-store operator to 37% between July 7 and March 31, up from 31.7%. Itochu slid 2.2% to 1,312 yen.
Pacific Metals slumped 2.9% to 535 yen on profit booking following last week an advance of 12%.
Office equipment retailer Askul surged 11% after the firm reported a first quarter operating profit of Y4.3 billion, down 38% on-year, but still ahead of its recently lowered guidance.
Australia stocks fall in quiet trade
Australian share market finished the session marginally down after fluctuating in and out of the neutral line, registering first fall in four consecutive sessions, due to lack of supporting cues from offshore market. The ASX sectors closed mostly down, with shares in materials, energy, industrials and healthcare sectors were biggest drags. The benchmark S&P/ASX200 and the broader All Ordinaries each grew 0.6% to 5525 and 5511.80, respectively.
Healthcare sector was biggest drag on the ASX today, with ResMed down by 0.3% to A$5.305 after Deustche Bank has downgraded the sleep technology company to hold. CSL declined by 0.7% to A$67.99 and Cohlear dropped 0.3% to A$61.89.
Shares of material and resources companies declined as profit taking after commodity prices finished mostly weaker on last Friday. Resources giant BHP Billiton added 0.3% to A$37.68, while Rio Tinto lost 0.5% to A$62.29 and junior iron ore miner Fortescue Metals Group was down 2.4% to A$4.57.
Wotif.com (WTF) shares climbed up 24.6% to A$3.29 after online travel business received A$700 million takeover bid by global player, Expedia. Expedia is an internet-based travel website started by Microsoft over a decade ago.
Nufarm shares climbed up 2.4% to A$4.64 after Citigroup has upgraded Nufarm to neutral from sell, citing confidence of a stronger balance sheet and chance for robust earnings growth in 2014-15. Nufarm's price target has been raised to $4.65 from $4.20.
Myer shares rose by 0.7% to A$2.205 after Credit Suisse has upgraded Myer to outperform from neutral saying it is cheap, has a good yield, and its financials are poised to improve. It has also raised its target price to A$2.40 from A$2.25.
China stocks fall on earnings concern
Mainland China shares closed mostly down, with small-cap companies leading losses after bearish comments from brokerage houses amid concern slowing economic growth will hurt earnings. The benchmark Shanghai Composite was 0.03% up from prior day to 2059.93.
Trading turnover decreased to 83.59 billion yuan from yesterday's 83.59 billion yuan.
Investor sentiments turned bearish on small cap companies after bearish statement from brokerage houses. CICC noted that China's small-company stocks will “lose steam” in the upcoming earnings season. UBS also stated in separate report that the small-caps rebound coming to an end with interim results likely to “undershoot” expectations.
Shares of technology stocks declined on profit booking. Leshi Internet Information & Technology dropped 2.5% to 43 yuan. Sanan Optoelectronics fell 8.4% to 14.23 yuan. Beijing Originwater Technology Co slid 5% to 27.15 yuan
Property developers stocks went up amid speculation some local governments may loosen home-purchase restrictions. China Vanke rose 3.4% to 8.76 yuan. Poly Real Estate Group Co added 2.2% to 5.14 yuan.
Shares of transportation equipment makers bumped up on demand growth hopes after the National Development and Reform Commission approved a plan to construct 436 kilometers of inter-city railways with a total investment of about 50 billion yuan ($8 billion). China Railway Group rose 1.6% to 2.62 yuan and China CNR advanced 3.7% to 4.83 yuan.
The National Development and Reform Commission has approved a 50 billion yuan (US$8.06 billion) plan to build an inter-city rail network in western Shaanxi Province as it looks to improve transport links in the country's less-developed inland region. The project will see the government invest in five projects to build 436km of rail lines across Shaanxi's Guanzhong region. Domestic media reported over the weekend that construction on 14 new railways with a combined length of 3,712km will start in the second half of the year, which will cost some 327.3 billion yuan in total
Hong Kong stocks end marginally down
Hong Kong share market closed marginally lower in quiet and narrow trade, as profit taking emerged amid lack of supporting cues from offshore bourses and as the benchmark index climbs to seven month high on Friday. The benchmark Hang Seng Index closed 0.02% down at 23540.92. Trading turnover decreased to HK$48.25 billion from yesterday's HK$53.55 billion.
Hong Kong's benchmark stock measure rebounded 11% through last week from this year's low in March as Chinese policy makers unveiled targeted measures to bolster growth.
Macau gaming players fell on profit booking following last week strong rally. Sands China declined 2% to HK$59.90, contributing 9-points losses to the benchmark Index and becoming the worst-performing blue chip. Galaxy Entertainment Group declined 1.2% to HK$65.65.
Sportwears counters were generally lower. Li Ning Co. tumbled 8.6% to HK$5.56 after Bank of America Corp.'s Merrill Lynch said the sportswear maker may report a first-half loss. Sport (01968) slipped 2% to HK$1.9. China Dongxiang (03818) fell 1.3% to HK$1.51. But Anta (02020) gained 2.4% to HK$12.94 after BofAML's target price hike.
Railway stocks advanced after the China Railway Corporation said railway infrastructure expenditure in the first five months of 2014 amounted to RMB136 billion, representing 22% of the full year budget. China Railway Group jumped 3.6% to HK$4. CSR Corp. rose 4.9% to HK$6.53.
Realty stocks went higher on reports many Chinese cities are studying to remove curbs on house purchase. COLI (00688) put on 1.7% to HK$20.65. CR Land (01109) added 1.6% to HK$15.4. China Vanke (02202) edged down 0.6% to HK$15.7 after hitting an intra-day high of HK$16.58.
Century Sage (01450) closed at HK$1.07, or 0.9% below its IPO price. Guorui Prop (02329) ended up 5% from its IPO price to HK$2.5. Link Holdings (08237) closed at HK$4.6, doubling its placing price.
Sensex closes record high above 26000
Indian stocks market closed at an all-time high today, on continued buying by foreign funds and retail investors in anticipation of a pragmatic budget. The 30-share BSE index Sensex provisionally closed up 138 points or 0.5% at 26100.08, while the 50-share NSE index Nifty was up 37.80 points or 0.5% to 7789.40.
Barring banking, oil & gas and metal, all other BSE sectoral indices were in the green. Among them, IT and TECk indices were the star-performers. Software exporters lead gains ahead of Infosys April-June earnings results on Friday.
Shares in IDFC surged after Morgan Stanley upgrades the stock to "overweight" from "underweight", citing its underperformance this year despite "good management, strong balance sheet, and diversified financial presence."
On the economic front, the Hong Kong Monetary Authority said on Monday that the official foreign currency reserve assets of Hong Kong amounted to US$320.9 billion as at the end of June 2014, up from US$320.2 billion at the end of May. There were no unsettled foreign exchange contracts both at end-June and end-May 2014. The total foreign currency reserve assets of US$320.9 billion represent over seven times the currency in circulation or about 49% of Hong Kong dollar M3.
Elsewhere in the Asia Pacific region- Taiwan's Taiex index was up 0.11% to 9520.20. South Korea's KOSPI index fell 0.23% to 2005.12.Malaysia's KLSE Composite added 0.44% to 1893.27. Singapore's Straits Times index rose 0.24% to 3280.14. New Zealand's NZX50 fell 0.05% to 5186.36. Indonesia's Jakarta Composite Index was up 1.34% to 4971.57.
