Asia Pacific share market declined on Monday, 29 September 2014, as
worst political unrest in Hong Kong since the city returned to Chinese
rule rattled regional investors. Meanwhile, fresh signs of slowing
growth in China and speculation of sooner than expected Federal Reserve
interest rate hike also weighed down overall sentiment. The MSCI Asia
Pacific Index dropped 0.7% to 141.09.
Hong Kong's pro-democracy protests intensified over the weekend after riot police fired rounds of tear gas after the launch of the long-awaited “Occupy Central” movement. Pro-democracy protesters vowed to press ahead with demonstrations unless Hong Kong's top official steps down, with thousands of people surrounding government offices after violent clashes paralyzed the city centre. Still, demonstrators continued to block roads on Monday, leading schools and banks in areas affected by the blockades to close.
Meanwhile the National Bureau of Statistics of China said on Saturday that profits of Chinese industrial businesses reached 482.56 billion yuan (78.45 billion U.S. dollars) in August, down 0.6% year on year, and far cry from July's 13.5% rise. The figures follow weak data earlier this month, factory output grew at its weakest pace in nearly six years in August, heightening expectations that Beijing's economy is in need of increased stimulus measures.
Meanwhile, selloff pressure also fuelled on speculation that a Federal Reserve interest rate hike may come sooner than expected after the US Commerce Department on Friday raised its estimate of gross domestic product growth to an annualised 4.6%, the fastest pace in 2-1/2 years, and accelerating from the 4.2% reported last month. The strength of the dollar is forcing investors to move away from a lot of the stock market assets and put it into the greenback.
Among Asian bourses
Aussie market plunges to a seven-month low
Australian shares extended its recent decline, weighing the benchmark indices to its lowest level in seven months. The decline was largely due to concerns over economic impact of decline in Australian dollar to lowest level since about mid-February and drop in commodity metal prices amid sign of sluggish economic growth in China. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.9% to 5264.20 and 5269.60, respectively.
The financial stocks ended lower, with top four banks being major losers in the wake of slide in the Australian dollar. Commonwealth Bank of Australia declined 1.1% to A$74.43, National Australia Bank 1.9% to A$32.07, Westpac Banking Corp 0.8% to A$31.65 and ANZ Banking Group 1.5% to A$30.53.
Materials and resources stocks extended fall amid worries over China's bleak appetite for the commodity metals. Resources giant BHP Billiton dropped 1.3% to A$33.72 and main rival Rio Tinto fell 1.5% to A$59.21. Iron ore miner Fortescue Metals Group shed 3.7% to A$3.41.
Gold miner Newcrest declined 1.5% to A$10.38, pressured by drop in bullion prices. Gold for December delivery, the most actively traded contract, fell 0.5% to $US1,215.40 a troy ounce on the Comex division of the New York Mercantile Exchange on Friday, its lowest close since December 31, 2013, hit by rising US dollar.
Rare-earths mining company Lynas Corp lost 25.2% to A$0.086 after it reported a deeper full-year loss and said it planned to raise A$83 million to shore up its balance sheet.
Shares in Australia's largest winemaker, Treasury Wine Estates, fell 8.5% to A$4.50 after the company rejected takeover proposals from two global private equity firms as they couldn't agree the terms and price for a deal.
New Zealand shares up on weaker Kiwi
New Zealand share market rose as a weaker kiwi dollar attracted investors to stocks with currency exposure such as Fletcher Building and Fisher & Paykel Healthcare. Meridian Energy extended its fall from a record. By the provisional closing, the NZX 50 Index increased 6.019 points, or 0.1%, to 5259.507. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was a lighter-than-usual $80.7 million.
The New Zealand dollar fell below 78 US cents for the first time in more than a year after the Reserve Bank published figures showing it intervened in foreign exchange markets in August. The kiwi dropped to 77.64 US cents, the lowest level since Aug. 30 last year, after data showed the central bank sold a net $521 million into currency markets in August, confirming speculation based on jaw-boning rhetoric from the bank's governor, Graeme Wheeler, that it had been active in the market that month. The currency had traded at 78.27 US cents immediately before the data release.
Nikkei jumps 0.5% as yen weakens
Headline equities of the Japanese market closed higher, following gain on the offshore markets on Friday and yen depreciation to upper 109-level against the greenback. Most of the blue chips advanced, led by exporters and other currency-sensitive stocks. The key Nikkei 225 index rose 0.5%, or 80.78 points, to 16310.64, while the Topix index of all first-section shares gained 0.40%, or 5.35 points, to 1337.30.
Shares of Exporters and other currency-sensitive companies advanced the most in Tokyo market, received boost from the yen weakening to upper-109 level against the greenback. The yen depreciation against the dollar stirring hopes for upward revisions to corporate earnings expectations. As of the close of the Tokyo Stock Exchange, the dollar was changing hands at Y109.63, well up from Y109.02 on Friday.
Air-conditioner maker Daikin Industries added 1.7% to 7050 yen, while chip testing equipment maker Advantest Corp gained 2.7% to 1418 yen. Canon Inc, the world's biggest camera maker, added 0.8% to 3596 yen. Toyota Motor Corp, the world's biggest automaker, advanced 0.5% to 6488 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, jumped 0.7% to 3770 yen. Sony Corp., which gets 72% of its sales abroad, rose 3.2% to 1959 yen.
Shares of convenience store operator Lawson Inc rose 0.7% to 7580 yen following a Nikkei report that the firm is likely to post a 10% on-year group operating profit increase of Y40 billion in its fiscal first half, ahead of its earlier forecast of Y37.9 billion.
Large-scale shopping mall operator Aeon Co fell 1.8% to 1088 yen on media report that its operating profit likely sank 40% on year in the first half as discounts meant to lift customer traffic squeezed margins.
Shares of SoftBank Corp fell 1.2% to 7807 yen on reports that the firm is in talks to buy or tie up with DreamWorks Animation SKG Inc, a deal which could help the Japanese company and the Hollywood studio as they seek new ways to compete with rivals worldwide. But the deal was panned by investors as a possible sign that SoftBank may be running out of takeover-based growth options.
Shanghai Composite rises to 19-months high
Mainland China equities extended its recent advance, sending the benchmark index to a highest level in almost 19 months, after central bank promises for more financial reforms. The benchmark Shanghai Composite index advanced 10 points, or 0.43%, to finish at 2357.71, the highest close since 1 March 2013, when it finished at 2359.51. The index has rallied 15% this quarter, amid speculation the government's reform measures will stem an economic slowdown and an exchange link with Hong Kong will fuel fund inflows.
China central government said in statement on Monday ahead of the zone's first anniversary that the State Council had approved the temporary removal of restrictions affecting 27 industries. The statement said that some of the limits on industry investment by foreign companies in joint ventures with Chinese firms will go from 49% to 51% or greater.
Shares of coal producers rebounded after data from China Coal Transport and Distribution Association showed benchmark price for China power-station coal rebounded as much as 485 yuan per metric tonne from the seven-year low on Friday. Datong Coal Industry Co. added 2.8% while Yanzhou Coal Mining Co. gained 2.3%.
Shares of shipping companies advanced after reports stated Shanghai container shipping rates rose about 4% in September from year-earlier levels, while pricing across China gained about 0.5%. China Shipbuilding Industry Co., the nation's largest maker of vessel equipment, jumped 10% and China CSSC Holdings Ltd. gained 2.9%
Hang Seng fall 1.9% after protests
Hong Kong equities declined sharply on heavy trade, dragging the benchmark Hang Seng Index 449.20 points or 1.9% down to finish at 23229.21, hit by the worst unrest since China took back control of the former British colony two decades ago. The selloff came after the launch of the long-awaited “Occupy Central” movement, which triggered large scale conflicts between the police and protesters.
Shares of financial and property developers declined the most in Hong Kong, as arbitrage opportunities between dual-listed stocks in Hong Kong and Shanghai would disappear after prices move toward parity before the cities link their bourses. Hong Kong's exchange released updated rules for the link on Sept. 26. It will reject bids deemed too far below prevailing share prices as authorities seek to prevent investors from “hogging” the daily quota of buy orders available for cross-border trades. Among developers, New World (00017) plunged 4.6% to HK$9.19. Sino Land (00083) slipped 4.5% to HK$11.92. Chueng Kong (00001), SHKP (00016) and Hang Lung Properties (00101) fell more than 3%. Among lenders, BOCHK (02388) dropped 3.7% to HK$24.75. BEA (00023) and Hang Seng Bank (00011) sank more than 2%. HSBC (00005) fell 1.8% to HK$80.7.
Retailer stocks were hard hiton speculation protests will deter mainland tourists from visiting during National Day holidays that begin Oct. 1. Emperor Watch (00887) plunged 6.6% to HK$0.355. I.T. (00999) descended 5.6% to HK$2.69. Both Sa Sa (00178) and Bonjour (00653) dipped more than 3%.
Sensex ends marginally in the red
Indian stocks market ended the session marginally in the red due to profit-taking by funds and retail investors ahead of RBI's monetary policy review tomorrow. The 30-share BSE index Sensex ended at 26,597.11, down 29.21 points and the 50-share NSE index Nifty ended at 7,958.90, down 9.95 points.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms and on weak rupee. Shares of travel companies jumped after Prime Minister Narendra Modi in his address to Indian community at Madison Square Garden, New York on Sunday, 28 September 2014, announced sweeping changes in procedures to facilitate travel between America and India. Most bank shares were trading lower. Cipla rose after the company said it aims to build a strong presence in Kenya. NTPC edged lower after signing a syndicated term loan facility of $250 million arranged by Mizuho Bank, Singapore Branch.
Mahindra & Mahindra (M&M) dropped in volatile trade after the company said that credit rating agency CRISIL has upgraded its ratings on the company's long-term bank facilities and Non-Convertible Debenture (NCD) programme. The stock fell 0.64% at Rs 1,384.80.
Zee Entertainment Enterprises rose 1.06% at Rs 305.50. The company announced during trading hours today, 29 September 2014 that its board has allotted 2.22 crore 6% non-cumulative redeemable non-convertible preference shares (Class A) of Re 1 each fully paid to the equity shareholders of Diligent Media Corporation (DMCL) as at the effective date i.e. 26 September 2014.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.32% to 8960.76. South Korea's KOSPI index eased 0.25% to 2026.60. Indonesia's Jakarta Composite index added 0.18% to 5142.01. Malaysia's KLCI rose 0.32% to 1846.34. New Zealand's NZX50 added 0.11% to 5259.51. Singapore's Straits Times index fell 0.08% at 3289.72.
Hong Kong's pro-democracy protests intensified over the weekend after riot police fired rounds of tear gas after the launch of the long-awaited “Occupy Central” movement. Pro-democracy protesters vowed to press ahead with demonstrations unless Hong Kong's top official steps down, with thousands of people surrounding government offices after violent clashes paralyzed the city centre. Still, demonstrators continued to block roads on Monday, leading schools and banks in areas affected by the blockades to close.
Meanwhile the National Bureau of Statistics of China said on Saturday that profits of Chinese industrial businesses reached 482.56 billion yuan (78.45 billion U.S. dollars) in August, down 0.6% year on year, and far cry from July's 13.5% rise. The figures follow weak data earlier this month, factory output grew at its weakest pace in nearly six years in August, heightening expectations that Beijing's economy is in need of increased stimulus measures.
Meanwhile, selloff pressure also fuelled on speculation that a Federal Reserve interest rate hike may come sooner than expected after the US Commerce Department on Friday raised its estimate of gross domestic product growth to an annualised 4.6%, the fastest pace in 2-1/2 years, and accelerating from the 4.2% reported last month. The strength of the dollar is forcing investors to move away from a lot of the stock market assets and put it into the greenback.
Among Asian bourses
Aussie market plunges to a seven-month low
Australian shares extended its recent decline, weighing the benchmark indices to its lowest level in seven months. The decline was largely due to concerns over economic impact of decline in Australian dollar to lowest level since about mid-February and drop in commodity metal prices amid sign of sluggish economic growth in China. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.9% to 5264.20 and 5269.60, respectively.
The financial stocks ended lower, with top four banks being major losers in the wake of slide in the Australian dollar. Commonwealth Bank of Australia declined 1.1% to A$74.43, National Australia Bank 1.9% to A$32.07, Westpac Banking Corp 0.8% to A$31.65 and ANZ Banking Group 1.5% to A$30.53.
Materials and resources stocks extended fall amid worries over China's bleak appetite for the commodity metals. Resources giant BHP Billiton dropped 1.3% to A$33.72 and main rival Rio Tinto fell 1.5% to A$59.21. Iron ore miner Fortescue Metals Group shed 3.7% to A$3.41.
Gold miner Newcrest declined 1.5% to A$10.38, pressured by drop in bullion prices. Gold for December delivery, the most actively traded contract, fell 0.5% to $US1,215.40 a troy ounce on the Comex division of the New York Mercantile Exchange on Friday, its lowest close since December 31, 2013, hit by rising US dollar.
Rare-earths mining company Lynas Corp lost 25.2% to A$0.086 after it reported a deeper full-year loss and said it planned to raise A$83 million to shore up its balance sheet.
Shares in Australia's largest winemaker, Treasury Wine Estates, fell 8.5% to A$4.50 after the company rejected takeover proposals from two global private equity firms as they couldn't agree the terms and price for a deal.
New Zealand shares up on weaker Kiwi
New Zealand share market rose as a weaker kiwi dollar attracted investors to stocks with currency exposure such as Fletcher Building and Fisher & Paykel Healthcare. Meridian Energy extended its fall from a record. By the provisional closing, the NZX 50 Index increased 6.019 points, or 0.1%, to 5259.507. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was a lighter-than-usual $80.7 million.
The New Zealand dollar fell below 78 US cents for the first time in more than a year after the Reserve Bank published figures showing it intervened in foreign exchange markets in August. The kiwi dropped to 77.64 US cents, the lowest level since Aug. 30 last year, after data showed the central bank sold a net $521 million into currency markets in August, confirming speculation based on jaw-boning rhetoric from the bank's governor, Graeme Wheeler, that it had been active in the market that month. The currency had traded at 78.27 US cents immediately before the data release.
Nikkei jumps 0.5% as yen weakens
Headline equities of the Japanese market closed higher, following gain on the offshore markets on Friday and yen depreciation to upper 109-level against the greenback. Most of the blue chips advanced, led by exporters and other currency-sensitive stocks. The key Nikkei 225 index rose 0.5%, or 80.78 points, to 16310.64, while the Topix index of all first-section shares gained 0.40%, or 5.35 points, to 1337.30.
Shares of Exporters and other currency-sensitive companies advanced the most in Tokyo market, received boost from the yen weakening to upper-109 level against the greenback. The yen depreciation against the dollar stirring hopes for upward revisions to corporate earnings expectations. As of the close of the Tokyo Stock Exchange, the dollar was changing hands at Y109.63, well up from Y109.02 on Friday.
Air-conditioner maker Daikin Industries added 1.7% to 7050 yen, while chip testing equipment maker Advantest Corp gained 2.7% to 1418 yen. Canon Inc, the world's biggest camera maker, added 0.8% to 3596 yen. Toyota Motor Corp, the world's biggest automaker, advanced 0.5% to 6488 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, jumped 0.7% to 3770 yen. Sony Corp., which gets 72% of its sales abroad, rose 3.2% to 1959 yen.
Shares of convenience store operator Lawson Inc rose 0.7% to 7580 yen following a Nikkei report that the firm is likely to post a 10% on-year group operating profit increase of Y40 billion in its fiscal first half, ahead of its earlier forecast of Y37.9 billion.
Large-scale shopping mall operator Aeon Co fell 1.8% to 1088 yen on media report that its operating profit likely sank 40% on year in the first half as discounts meant to lift customer traffic squeezed margins.
Shares of SoftBank Corp fell 1.2% to 7807 yen on reports that the firm is in talks to buy or tie up with DreamWorks Animation SKG Inc, a deal which could help the Japanese company and the Hollywood studio as they seek new ways to compete with rivals worldwide. But the deal was panned by investors as a possible sign that SoftBank may be running out of takeover-based growth options.
Shanghai Composite rises to 19-months high
Mainland China equities extended its recent advance, sending the benchmark index to a highest level in almost 19 months, after central bank promises for more financial reforms. The benchmark Shanghai Composite index advanced 10 points, or 0.43%, to finish at 2357.71, the highest close since 1 March 2013, when it finished at 2359.51. The index has rallied 15% this quarter, amid speculation the government's reform measures will stem an economic slowdown and an exchange link with Hong Kong will fuel fund inflows.
China central government said in statement on Monday ahead of the zone's first anniversary that the State Council had approved the temporary removal of restrictions affecting 27 industries. The statement said that some of the limits on industry investment by foreign companies in joint ventures with Chinese firms will go from 49% to 51% or greater.
Shares of coal producers rebounded after data from China Coal Transport and Distribution Association showed benchmark price for China power-station coal rebounded as much as 485 yuan per metric tonne from the seven-year low on Friday. Datong Coal Industry Co. added 2.8% while Yanzhou Coal Mining Co. gained 2.3%.
Shares of shipping companies advanced after reports stated Shanghai container shipping rates rose about 4% in September from year-earlier levels, while pricing across China gained about 0.5%. China Shipbuilding Industry Co., the nation's largest maker of vessel equipment, jumped 10% and China CSSC Holdings Ltd. gained 2.9%
Hang Seng fall 1.9% after protests
Hong Kong equities declined sharply on heavy trade, dragging the benchmark Hang Seng Index 449.20 points or 1.9% down to finish at 23229.21, hit by the worst unrest since China took back control of the former British colony two decades ago. The selloff came after the launch of the long-awaited “Occupy Central” movement, which triggered large scale conflicts between the police and protesters.
Shares of financial and property developers declined the most in Hong Kong, as arbitrage opportunities between dual-listed stocks in Hong Kong and Shanghai would disappear after prices move toward parity before the cities link their bourses. Hong Kong's exchange released updated rules for the link on Sept. 26. It will reject bids deemed too far below prevailing share prices as authorities seek to prevent investors from “hogging” the daily quota of buy orders available for cross-border trades. Among developers, New World (00017) plunged 4.6% to HK$9.19. Sino Land (00083) slipped 4.5% to HK$11.92. Chueng Kong (00001), SHKP (00016) and Hang Lung Properties (00101) fell more than 3%. Among lenders, BOCHK (02388) dropped 3.7% to HK$24.75. BEA (00023) and Hang Seng Bank (00011) sank more than 2%. HSBC (00005) fell 1.8% to HK$80.7.
Retailer stocks were hard hiton speculation protests will deter mainland tourists from visiting during National Day holidays that begin Oct. 1. Emperor Watch (00887) plunged 6.6% to HK$0.355. I.T. (00999) descended 5.6% to HK$2.69. Both Sa Sa (00178) and Bonjour (00653) dipped more than 3%.
Sensex ends marginally in the red
Indian stocks market ended the session marginally in the red due to profit-taking by funds and retail investors ahead of RBI's monetary policy review tomorrow. The 30-share BSE index Sensex ended at 26,597.11, down 29.21 points and the 50-share NSE index Nifty ended at 7,958.90, down 9.95 points.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms and on weak rupee. Shares of travel companies jumped after Prime Minister Narendra Modi in his address to Indian community at Madison Square Garden, New York on Sunday, 28 September 2014, announced sweeping changes in procedures to facilitate travel between America and India. Most bank shares were trading lower. Cipla rose after the company said it aims to build a strong presence in Kenya. NTPC edged lower after signing a syndicated term loan facility of $250 million arranged by Mizuho Bank, Singapore Branch.
Mahindra & Mahindra (M&M) dropped in volatile trade after the company said that credit rating agency CRISIL has upgraded its ratings on the company's long-term bank facilities and Non-Convertible Debenture (NCD) programme. The stock fell 0.64% at Rs 1,384.80.
Zee Entertainment Enterprises rose 1.06% at Rs 305.50. The company announced during trading hours today, 29 September 2014 that its board has allotted 2.22 crore 6% non-cumulative redeemable non-convertible preference shares (Class A) of Re 1 each fully paid to the equity shareholders of Diligent Media Corporation (DMCL) as at the effective date i.e. 26 September 2014.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.32% to 8960.76. South Korea's KOSPI index eased 0.25% to 2026.60. Indonesia's Jakarta Composite index added 0.18% to 5142.01. Malaysia's KLCI rose 0.32% to 1846.34. New Zealand's NZX50 added 0.11% to 5259.51. Singapore's Straits Times index fell 0.08% at 3289.72.
