Asia Pacific share market dropped on Friday, 01 August 2014, in
investors booked profit on recent rally on tracking a big selloff on
offshore markets overnight. But China's strong official PMI offset part
of the impact from weaker overseas market.
The regional benchmark indices opened lower on following falls on US and European markets overnight. The weak eurozone data, the Argentine debt default, weakness in the Portuguese banking system, the impact of sanctions against Russia, and disappointing US corporate earnings blamed for the selloff. Overnight, the Dow Jones Industrial Average tumbled 1.88%, Frankfurt's main DAX index dove 1.94%, Paris' CAC 40 shed 1.53% and London's benchmark FTSE 100 index fell 0.64%.
But drop in the Asian bourses were limited on the back of upbeat data on Chinese manufacturing. Monthly surveys of manufacturing in China signaled that the world's second biggest economy perked up further in July thanks to recent mini-stimulus measures. An official purchasing managers' index rose to its highest in 27 months while a similar factory report by HSBC showed the strongest rate of improvement in a year and a half.
China's official Purchasing Managers' Index rose to 51.7 last month from 51.0 in June, making it the highest reading this year. The final HSBC/Markit PMI also released on Friday, indicating the private sector PMI fell slightly to 51.7 in July, from 52 in June. The official PMI gives a broader view of the manufacturing sector as it includes the big state-owned firms.
Among Asian bourses
Nikkei declines 0.63%
Japanese share market declined for second consecutive day, as profit booking occurred across the board on tracking a big selloff on offshore markets overnight. But losses were limited amid optimistic reports on China's economy and yen weakness against dollar. The benchmark Nikkei 225 index dropped 97.66 points lower to close at 15523.11, while the Topix index fell 8.12 points to 1281.30.
Yahoo Japan Corp. tumbled 6.6% to 442 yen after the Internet portal posted flat operating profit. The company reported operating profit of 48.8 billion yen in the first quarter, little changed from a year earlier. Goldman Sachs Group Inc. reduced its share-price target on the stock to 630 yen from 650 yen.
NTN Corp tumbled 7.6% 463 yen, after reporting first-quarter earnings. The company maintained its full-year forecast even as profit quadrupled.
SoftBank Corp. dropped 1.3% to 7,477 yen amid concern its Sprint Corp. unit faces competition to acquire T-Mobile US Inc. France's mobile-phone carrier Iliad SA made a bid for a controlling stake in T-Mobile after SoftBank's owner Masayoshi Son made a case that regulators should consider letting Sprint and T-Mobile US combine.
Sony Corp. gained to 1,855 yen after posting a surprise quarterly profit as the PlayStation 4 topped sales for game consoles. Net income rose to 26.8 billion yen in the first quarter as the PlayStation 4 topped sales for game consoles and “The Amazing Spider-Man” rejuvenated box-office receipts for its Hollywood studios.
Auto-parts maker NGK Insulators surged 11% to 2,750 yen after raising its full-year profit forecast. The company raised its full-year profit forecast by 15% to 39 billion yen.
Australia stocks tumble 1.4% from six-year peaks
Australian stock market declined, breaking a three-day winning streak, amidst profit taking across the board on tracking a big selloff on offshore markets overnight and on caution before official start of earnings season. The benchmark S&P/ASX 200 Index dropped 76.50 points, or 1.36% to 5556.40, while the broader All Ordinaries Index sank 75.50 points, or 1.34%, to 5547.60. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each ended the week 0.5% lower.
The financial stocks declined, with big 4 lenders being the biggest loser. Commonwealth Bank of Australia fell 1.1% to A$82.82, Westpac Banking Corp 1.6% to A$34.05, and ANZ Banking Group 1.2% to A$33.56. National Australia Bank fell 1.1% to A$34.93 after announcing a shake-up to its senior management team as Andrew Thorburn took over as chief executive.
Shares of material & resources companies declined on profit booking, as gold, zinc and a number of other metals lost ground, with Resources giant BHP Billiton falling 0.7% to A$38.41. Fortescue Metals Group dropped 4.9% to A$4.68. Rio Tinto lost 1.5% to $65.40.
Woodside Petroleum was down 1.4% to A$41.92 after shareholders have rejected a proposed $US2.68 billion buyback of shares from Royal Dutch Shell even after chairman Michael Chaney poured cold water on hopes for an equal access share buyback should the resolution be defeated.
The Australian Industry Group's performance of manufacturing index (PMI) for July showed expansion for the first time in eight months. helped by increased activity in the food, beverages and tobacco sub sector. The Australian Industry Group's (Ai Group) Performance of Manufacturing Index (PMI) rose 1.7 points to 50.7 in July. It was the first time since October the index was above 50, indicating an increase in activity.
The Reserve Bank of Australia released the index of commodity prices for July on Friday, showing that the index declined by 0.9% (on a monthly average basis) in SDR terms, after declining by 2.2% in June (revised). The largest contributors to the decline in July were falls in the prices of iron ore, oil and wheat. The base metals subindex rose in the month while the rural commodities subindex declined. In Australian dollar terms, the index declined by 1.1% in July.
Shanghai index falls 0.74% from 8-month peaks
Headline shares of the Mainland China market declined, dragging the benchmark Shanghai Composite lower by 16.26 points to close at 2185.30. The profit booking triggered in last hour of trade after the benchmark index surged to the highest level since December 2013 early today. But drop was limited on the back of upbeat data on Chinese manufacturing.
Brokerage shares slumped on profit taking. Sinolink Securities slid 3.7%. Citic Securities Co. lost 2.5%. Haitong Securities Co. retreated 2.3%.
Gold producers declined as the precious metal headed for a third weekly drop. The metal declined 3.4% in July to post the biggest monthly loss this year. Zijin Mining slid 3.3%.
Health-care stocks climbed, with Guangzhou Baiyunshan Pharmaceutical jumping 7.4% after saying it will start producing Viagra-like products once it wins regulatory approval.
Shijiangzhuang Yiling Pharmaceutical Co. advanced 1.4%. Huadong Medicine Co. added 4.3%.
Hang Seng falls 0.91% from 45-month highs
Hong Kong share market closed down, snapping eight sessions winning streak, as a strong sell-off in global stocks overnight dented sentiment. But China's strong official PMI offset part of the impact from weaker overseas market. The benchmark Hang Seng Index declined 224.42 points to close at 24532.43. Turnover decreased to HK$79.9 billion from yesterday's HK$84 billion.
Shares of realty companies declined on profit booking. Cheung Kong (00001) slid 4.7% to HK$143.6, making itself the biggest blue-chip loser, after its first-half profit excluding property revaluation and one-time gains missed analyst estimates. COLI (00688) fell 2.3% to HK$23.25 after it reported an 18% growth in interim earnings. CR Land (01109) softened nearly 1% to HK$18.04. China Overseas Grand tumbled 7% to HK$5.85 after Citigroup cuts its rating to sell from neutral and Nomura Holdings Inc. lowered it to reduce from neutral.
Casino stocks dropped after Macau said gross gaming revenues in July reduced 3.6%. Galaxy Ent (00027) and Sands China (01928) slipped 2% to HK$64.4 and HK$56.45.
Utilities stocks were in spotlight after roadmap for big five power producers emerged. Huadian Power (01071) put on 3% to HK$4.94. Huaneng Power (00902) added 2.7% to HK$8.9. CR Power (00836) nudged up 0.2% to HK$21.8.
Sensex, Nifty hit two-week low
Indian stock market extended losses and hit fresh intraday low in late-afternoon trade after a narrow movement in negative zone in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit two-week low. At 14:20 IST, the S&P BSE Sensex was down 256.63 points or 0.99% to 25,638.34. The CNX Nifty was down 73.40 points or 0.95% to 7,647.90.
Capital goods stocks declined. But, Bharat Heavy Electricals (Bhel) edged higher after the company said that it has commissioned another hydro generating unit of 68 megawatts (MW) at Rampur Hydro Electric Project (HEP) in Himachal Pradesh.
HCL Technologies extended Thursday's losses triggered the company reporting a sequential fall in EBITDA in Q4 March 2014 over Q3 June 2014.
Elsewhere in the Asia Pacific region-- South Korea's KOSPI index fell 0.15% to 2073.10. Taiwan's Taiex index dropped 0.53% to 9266.51. New Zealand's NZX50 fell 1.12% to 5109.93. Singapore's Straits Times index fell 0.88% to 3344.42. Malaysia's KLSE Composite was down 0.43% to 1863.34.
The regional benchmark indices opened lower on following falls on US and European markets overnight. The weak eurozone data, the Argentine debt default, weakness in the Portuguese banking system, the impact of sanctions against Russia, and disappointing US corporate earnings blamed for the selloff. Overnight, the Dow Jones Industrial Average tumbled 1.88%, Frankfurt's main DAX index dove 1.94%, Paris' CAC 40 shed 1.53% and London's benchmark FTSE 100 index fell 0.64%.
But drop in the Asian bourses were limited on the back of upbeat data on Chinese manufacturing. Monthly surveys of manufacturing in China signaled that the world's second biggest economy perked up further in July thanks to recent mini-stimulus measures. An official purchasing managers' index rose to its highest in 27 months while a similar factory report by HSBC showed the strongest rate of improvement in a year and a half.
China's official Purchasing Managers' Index rose to 51.7 last month from 51.0 in June, making it the highest reading this year. The final HSBC/Markit PMI also released on Friday, indicating the private sector PMI fell slightly to 51.7 in July, from 52 in June. The official PMI gives a broader view of the manufacturing sector as it includes the big state-owned firms.
Among Asian bourses
Nikkei declines 0.63%
Japanese share market declined for second consecutive day, as profit booking occurred across the board on tracking a big selloff on offshore markets overnight. But losses were limited amid optimistic reports on China's economy and yen weakness against dollar. The benchmark Nikkei 225 index dropped 97.66 points lower to close at 15523.11, while the Topix index fell 8.12 points to 1281.30.
Yahoo Japan Corp. tumbled 6.6% to 442 yen after the Internet portal posted flat operating profit. The company reported operating profit of 48.8 billion yen in the first quarter, little changed from a year earlier. Goldman Sachs Group Inc. reduced its share-price target on the stock to 630 yen from 650 yen.
NTN Corp tumbled 7.6% 463 yen, after reporting first-quarter earnings. The company maintained its full-year forecast even as profit quadrupled.
SoftBank Corp. dropped 1.3% to 7,477 yen amid concern its Sprint Corp. unit faces competition to acquire T-Mobile US Inc. France's mobile-phone carrier Iliad SA made a bid for a controlling stake in T-Mobile after SoftBank's owner Masayoshi Son made a case that regulators should consider letting Sprint and T-Mobile US combine.
Sony Corp. gained to 1,855 yen after posting a surprise quarterly profit as the PlayStation 4 topped sales for game consoles. Net income rose to 26.8 billion yen in the first quarter as the PlayStation 4 topped sales for game consoles and “The Amazing Spider-Man” rejuvenated box-office receipts for its Hollywood studios.
Auto-parts maker NGK Insulators surged 11% to 2,750 yen after raising its full-year profit forecast. The company raised its full-year profit forecast by 15% to 39 billion yen.
Australia stocks tumble 1.4% from six-year peaks
Australian stock market declined, breaking a three-day winning streak, amidst profit taking across the board on tracking a big selloff on offshore markets overnight and on caution before official start of earnings season. The benchmark S&P/ASX 200 Index dropped 76.50 points, or 1.36% to 5556.40, while the broader All Ordinaries Index sank 75.50 points, or 1.34%, to 5547.60. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each ended the week 0.5% lower.
The financial stocks declined, with big 4 lenders being the biggest loser. Commonwealth Bank of Australia fell 1.1% to A$82.82, Westpac Banking Corp 1.6% to A$34.05, and ANZ Banking Group 1.2% to A$33.56. National Australia Bank fell 1.1% to A$34.93 after announcing a shake-up to its senior management team as Andrew Thorburn took over as chief executive.
Shares of material & resources companies declined on profit booking, as gold, zinc and a number of other metals lost ground, with Resources giant BHP Billiton falling 0.7% to A$38.41. Fortescue Metals Group dropped 4.9% to A$4.68. Rio Tinto lost 1.5% to $65.40.
Woodside Petroleum was down 1.4% to A$41.92 after shareholders have rejected a proposed $US2.68 billion buyback of shares from Royal Dutch Shell even after chairman Michael Chaney poured cold water on hopes for an equal access share buyback should the resolution be defeated.
The Australian Industry Group's performance of manufacturing index (PMI) for July showed expansion for the first time in eight months. helped by increased activity in the food, beverages and tobacco sub sector. The Australian Industry Group's (Ai Group) Performance of Manufacturing Index (PMI) rose 1.7 points to 50.7 in July. It was the first time since October the index was above 50, indicating an increase in activity.
The Reserve Bank of Australia released the index of commodity prices for July on Friday, showing that the index declined by 0.9% (on a monthly average basis) in SDR terms, after declining by 2.2% in June (revised). The largest contributors to the decline in July were falls in the prices of iron ore, oil and wheat. The base metals subindex rose in the month while the rural commodities subindex declined. In Australian dollar terms, the index declined by 1.1% in July.
Shanghai index falls 0.74% from 8-month peaks
Headline shares of the Mainland China market declined, dragging the benchmark Shanghai Composite lower by 16.26 points to close at 2185.30. The profit booking triggered in last hour of trade after the benchmark index surged to the highest level since December 2013 early today. But drop was limited on the back of upbeat data on Chinese manufacturing.
Brokerage shares slumped on profit taking. Sinolink Securities slid 3.7%. Citic Securities Co. lost 2.5%. Haitong Securities Co. retreated 2.3%.
Gold producers declined as the precious metal headed for a third weekly drop. The metal declined 3.4% in July to post the biggest monthly loss this year. Zijin Mining slid 3.3%.
Health-care stocks climbed, with Guangzhou Baiyunshan Pharmaceutical jumping 7.4% after saying it will start producing Viagra-like products once it wins regulatory approval.
Shijiangzhuang Yiling Pharmaceutical Co. advanced 1.4%. Huadong Medicine Co. added 4.3%.
Hang Seng falls 0.91% from 45-month highs
Hong Kong share market closed down, snapping eight sessions winning streak, as a strong sell-off in global stocks overnight dented sentiment. But China's strong official PMI offset part of the impact from weaker overseas market. The benchmark Hang Seng Index declined 224.42 points to close at 24532.43. Turnover decreased to HK$79.9 billion from yesterday's HK$84 billion.
Shares of realty companies declined on profit booking. Cheung Kong (00001) slid 4.7% to HK$143.6, making itself the biggest blue-chip loser, after its first-half profit excluding property revaluation and one-time gains missed analyst estimates. COLI (00688) fell 2.3% to HK$23.25 after it reported an 18% growth in interim earnings. CR Land (01109) softened nearly 1% to HK$18.04. China Overseas Grand tumbled 7% to HK$5.85 after Citigroup cuts its rating to sell from neutral and Nomura Holdings Inc. lowered it to reduce from neutral.
Casino stocks dropped after Macau said gross gaming revenues in July reduced 3.6%. Galaxy Ent (00027) and Sands China (01928) slipped 2% to HK$64.4 and HK$56.45.
Utilities stocks were in spotlight after roadmap for big five power producers emerged. Huadian Power (01071) put on 3% to HK$4.94. Huaneng Power (00902) added 2.7% to HK$8.9. CR Power (00836) nudged up 0.2% to HK$21.8.
Sensex, Nifty hit two-week low
Indian stock market extended losses and hit fresh intraday low in late-afternoon trade after a narrow movement in negative zone in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit two-week low. At 14:20 IST, the S&P BSE Sensex was down 256.63 points or 0.99% to 25,638.34. The CNX Nifty was down 73.40 points or 0.95% to 7,647.90.
Capital goods stocks declined. But, Bharat Heavy Electricals (Bhel) edged higher after the company said that it has commissioned another hydro generating unit of 68 megawatts (MW) at Rampur Hydro Electric Project (HEP) in Himachal Pradesh.
HCL Technologies extended Thursday's losses triggered the company reporting a sequential fall in EBITDA in Q4 March 2014 over Q3 June 2014.
Elsewhere in the Asia Pacific region-- South Korea's KOSPI index fell 0.15% to 2073.10. Taiwan's Taiex index dropped 0.53% to 9266.51. New Zealand's NZX50 fell 1.12% to 5109.93. Singapore's Straits Times index fell 0.88% to 3344.42. Malaysia's KLSE Composite was down 0.43% to 1863.34.
