Headline equities of the Asia Pacific market finished mostly down on
Tuesday, 30 September 2014, as drop in US and European markets
overnight, surprisingly weak f economic data from China and Japan, and
caution over civil unrest in Hong Kong weighed down risk sentiments. The
MSCI Asia Pacific Index slid 0.6% to 140.32.
Regional market opened lower today, following drop in the international market overnight amid concern over political unrest in Hong Kong as pro-democracy demonstrators continued to oppose China's plan for electoral reform in the territory. There were concerns that Beijing would direct the HK government to step up the suppressions, which could repeat the Tiananmen Massacre on June 4, 1989 and ruin HK's status as a global financial center.
The decline in the regional market came amid concerns over the health of the world's second largest economy flared after release of disappointing China manufacturing PMI data for September. China's final HSBC/Markit Purchasing Managers Index for September came in at 50.2, unchanged from the August reading which was three-month low, but lower than a preliminary reading of 50.5. The official version of the September PMI is due on Wednesday.
Meanwhile sell-off pressure accelerated after data from the Japan showed that industrial production world's third largest economy fell a seasonally adjusted 1.5% in August from the previous month indicated that demand following the nation's April consumption tax hike remains sluggish. Data released also from the internal affairs ministry on Tuesday showed the jobless rate fell to 3.5% in August from 3.8% in July and retail spending rose 1.9% after declining 0.5% in July.
Among Asian bourses
Nikkei falls 0.84% on profit booking
Japanese market finished down, as drop in US and European markets overnight, surprisingly weak batch of economic data, and caution over political unrest in Hong Kong dragged down risk sentiments. The key benchmark Nikkei 225 index dropped 0.84%, or 137.12 points, to 16173.52, while the Topix index of all first-section shares fell 0.82%, or 11.01 points, to 1326.29.
Exporters shares declined amid profit taking, with companies having major exposure to Hong Kong suffered the most amid heightened unrest. Daikin Industries, an air conditioner maker that gets about 18% of revenue from China, slumped 3.6% to 6,798 yen. Fanuc Corp., which gets 37% of its sales from Asia excluding Japan, lost 1.2% to 19,810 yen. Okaya Electric Industries Co., which gets about 20% of its revenue from Hong Kong, lost 1% to 390 yen. Toyota slid 0.4% to 6,463 yen. Hitachi Ltd. declined 1.9% to 837.5 yen.
General trading companies also ended lower, led by Sumitomo Corp, falling 12% to 1,210.5 yen, after the trading company announced on Monday large losses across several projects, including a shale oil business in Texas. The firm said that the 170 billion yen impairment loss will push its full year consolidated net profit down 96% to just 10 billion yen. The company said it will set up a special investigation into how it lost almost $1.8 billion in Texas shale oil and Australian coal mining. Mitsubishi Corp. lost 2.9% to 2246 yen and Itochu Corp fell 3.4% to 1340 yen.
Aussie market bounces 0.5% from seven-month low
Australian share market finished the session modest higher, as investors chased for bargain hunting across the board following recent selloff, with banks and financial stocks being major gainers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.5% to 5292.80 and 5296.80, respectively. Turnover was relatively healthy with 1.94 billion shares worth of A$4.75 billion traded today. The market has suffered the worst in September in more than two years, losing almost 6% in value, or A$92 billion.
Shares of banks and financial companies advanced the most in Sydney, led by top four lenders as bargain hunters snapped up the big four banks that have all been heavily sold-off in recent weeks. Australia's big four banks were amongst the biggest lags on the market during September with money being taken out of the local market as investors wind back yield plays, the Australian dollar slides and the Financial Services Inquiry clouds the sector.
Among banks, Commonwealth Bank of Australia rose 1.2% to A$75.29, National Australia Bank 1.5% to A$32.54, Westpac Banking Corp 1.6% to A$32.14 and ANZ Banking Group 1.3% to A$30.92.
Rare-earths mining company Lynas Corp dropped 7% to A$0.080, extending yesterday's
25.2% drop after it reported a deeper full-year loss and said it planned to raise A$83 million from investors to shore up its balance sheet.
Shares of Treasury Wine Estates dropped 5.8% to A$4.24, extending yesterday's 8.5% slump after the in Australia's largest winemaker rejected takeover proposals from two global private equity firms as they couldn't agree the terms and price for a deal.
Shanghai Composite rises to 19-months high
Mainland China market advanced to for a sixth consecutive trading day to close at highest level in 19 months, as risk sentiment was buoyed by abundant liquidity in the market, speculation of government reforms measures and hopes an exchange link with Hong Kong may fuel fund inflows. The benchmark Shanghai Composite index advanced 6.16 points, or 0.26%, to finish at 2363.87, the highest close since 28 February 2013, when it finished at 2365.59. Mainland markets will be shut from Oct. 1 to Oct. 7 for the National Day holidays.
The China Securities Journal reported on Monday that China might announces measure including tax cuts to manage the economy with a targeted-easing approach as economic growth in the third quarter is expected to slow from the previous quarter.
Shares of coal producers advanced the most in Shanghai on the prospect that government reforms will support prices. China Shenhua Energy Co., the nation's largest coal producer, gained 0.6% to 15.56 yuan, after the government said it will levy a resource tax based on market prices. Datong Coal Industry Co rose 3.5% to 7.36 yuan and Shaanxi Coal Industry Co. surged 3.8% to 5.72 yuan.
Hang Seng fall 1.28% amid Occupy Central protests
Hong Kong equity market extended losses for second day, as risk aversion selloff across the board, hit by the continued Occupy Central protests to oppose China's plan for electoral reform in the territory. Protest leaders set a Wednesday deadline for a response from the government to their demands for democratic reforms. The benchmark Hang Seng Index declined 1.28% to 22932.98, extending yesterday's 1.9% slump. Markets are closed for a two-day public holiday on Wednesday and Thursday, to mark China's National Day.
Shares of property developers and shopping mall operator continued their decline on speculation that fewer tourists will visit the city as protests drag on and that property prices could fall if political risks increase. Wharf Holdings, which owns two of the city's most popular shopping malls, Harbour City and Times Square, closed steady at HK$55.20 after recouping early losses. Sun Hung Kai Properties fell 1.78% to HK$110.10. Henderson Land Development Co shed 1.9% to HK$50.30. China Resources Land erased 2.1% to HK$16.
Shares of retailers closed steep lower, amid concerns protests across the city have had to shut many stores at a time when mainland Chinese tourists flock to the city. The National Day holiday on Wednesday marks one of the peak seasons for Hong Kong retailers. I.T. (00999) descended 3% to HK$2.61. Both Sa Sa (00178) and Bonjour Holdings dipped 2.7% to HK$1.07. The city's largest cosmetic retailer, Sa Sa International, closed steady at HK$5.22.
Sensex ends marginal higher in volatile trade
Indian stock market surrendered most of its early gains before ending the trade on selling in interest-sensitive stocks of banking and realty stocks, after the RBI kept interest rates unchanged in its bi-monthly monetary policy. The S&P BSE Sensex rose 33.40 points or 0.13% at 26,630.51, while The CNX Nifty rose 5.90 points or 0.07% at 7,964.80.
Interest rate sensitive banking and realty stocks declined after the RBI in its fourth bi-monthly monetary policy review today, 30 September 2014, kept key policy rates unchanged. PSU OMCs gained ahead of a fortnightly revision in fuel prices tomorrow, 1 October 2014. Tyre stocks rose across the board on persistent fall in rubber prices. Pharma stocks gained as rupee edged lower against the dollar.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.07% to 8966.92. South Korea's KOSPI index eased 0.32% to 2020.09. Indonesia's Jakarta Composite index sank 0.09% to 5137.58. Malaysia's KLCI eased 0.03 point to 1846.31. New Zealand's NZX50 slid 0.08% to 5255.04. Singapore's Straits Times index fell 0.39% at 3276.74.
Regional market opened lower today, following drop in the international market overnight amid concern over political unrest in Hong Kong as pro-democracy demonstrators continued to oppose China's plan for electoral reform in the territory. There were concerns that Beijing would direct the HK government to step up the suppressions, which could repeat the Tiananmen Massacre on June 4, 1989 and ruin HK's status as a global financial center.
The decline in the regional market came amid concerns over the health of the world's second largest economy flared after release of disappointing China manufacturing PMI data for September. China's final HSBC/Markit Purchasing Managers Index for September came in at 50.2, unchanged from the August reading which was three-month low, but lower than a preliminary reading of 50.5. The official version of the September PMI is due on Wednesday.
Meanwhile sell-off pressure accelerated after data from the Japan showed that industrial production world's third largest economy fell a seasonally adjusted 1.5% in August from the previous month indicated that demand following the nation's April consumption tax hike remains sluggish. Data released also from the internal affairs ministry on Tuesday showed the jobless rate fell to 3.5% in August from 3.8% in July and retail spending rose 1.9% after declining 0.5% in July.
Among Asian bourses
Nikkei falls 0.84% on profit booking
Japanese market finished down, as drop in US and European markets overnight, surprisingly weak batch of economic data, and caution over political unrest in Hong Kong dragged down risk sentiments. The key benchmark Nikkei 225 index dropped 0.84%, or 137.12 points, to 16173.52, while the Topix index of all first-section shares fell 0.82%, or 11.01 points, to 1326.29.
Exporters shares declined amid profit taking, with companies having major exposure to Hong Kong suffered the most amid heightened unrest. Daikin Industries, an air conditioner maker that gets about 18% of revenue from China, slumped 3.6% to 6,798 yen. Fanuc Corp., which gets 37% of its sales from Asia excluding Japan, lost 1.2% to 19,810 yen. Okaya Electric Industries Co., which gets about 20% of its revenue from Hong Kong, lost 1% to 390 yen. Toyota slid 0.4% to 6,463 yen. Hitachi Ltd. declined 1.9% to 837.5 yen.
General trading companies also ended lower, led by Sumitomo Corp, falling 12% to 1,210.5 yen, after the trading company announced on Monday large losses across several projects, including a shale oil business in Texas. The firm said that the 170 billion yen impairment loss will push its full year consolidated net profit down 96% to just 10 billion yen. The company said it will set up a special investigation into how it lost almost $1.8 billion in Texas shale oil and Australian coal mining. Mitsubishi Corp. lost 2.9% to 2246 yen and Itochu Corp fell 3.4% to 1340 yen.
Aussie market bounces 0.5% from seven-month low
Australian share market finished the session modest higher, as investors chased for bargain hunting across the board following recent selloff, with banks and financial stocks being major gainers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.5% to 5292.80 and 5296.80, respectively. Turnover was relatively healthy with 1.94 billion shares worth of A$4.75 billion traded today. The market has suffered the worst in September in more than two years, losing almost 6% in value, or A$92 billion.
Shares of banks and financial companies advanced the most in Sydney, led by top four lenders as bargain hunters snapped up the big four banks that have all been heavily sold-off in recent weeks. Australia's big four banks were amongst the biggest lags on the market during September with money being taken out of the local market as investors wind back yield plays, the Australian dollar slides and the Financial Services Inquiry clouds the sector.
Among banks, Commonwealth Bank of Australia rose 1.2% to A$75.29, National Australia Bank 1.5% to A$32.54, Westpac Banking Corp 1.6% to A$32.14 and ANZ Banking Group 1.3% to A$30.92.
Rare-earths mining company Lynas Corp dropped 7% to A$0.080, extending yesterday's
25.2% drop after it reported a deeper full-year loss and said it planned to raise A$83 million from investors to shore up its balance sheet.
Shares of Treasury Wine Estates dropped 5.8% to A$4.24, extending yesterday's 8.5% slump after the in Australia's largest winemaker rejected takeover proposals from two global private equity firms as they couldn't agree the terms and price for a deal.
Shanghai Composite rises to 19-months high
Mainland China market advanced to for a sixth consecutive trading day to close at highest level in 19 months, as risk sentiment was buoyed by abundant liquidity in the market, speculation of government reforms measures and hopes an exchange link with Hong Kong may fuel fund inflows. The benchmark Shanghai Composite index advanced 6.16 points, or 0.26%, to finish at 2363.87, the highest close since 28 February 2013, when it finished at 2365.59. Mainland markets will be shut from Oct. 1 to Oct. 7 for the National Day holidays.
The China Securities Journal reported on Monday that China might announces measure including tax cuts to manage the economy with a targeted-easing approach as economic growth in the third quarter is expected to slow from the previous quarter.
Shares of coal producers advanced the most in Shanghai on the prospect that government reforms will support prices. China Shenhua Energy Co., the nation's largest coal producer, gained 0.6% to 15.56 yuan, after the government said it will levy a resource tax based on market prices. Datong Coal Industry Co rose 3.5% to 7.36 yuan and Shaanxi Coal Industry Co. surged 3.8% to 5.72 yuan.
Hang Seng fall 1.28% amid Occupy Central protests
Hong Kong equity market extended losses for second day, as risk aversion selloff across the board, hit by the continued Occupy Central protests to oppose China's plan for electoral reform in the territory. Protest leaders set a Wednesday deadline for a response from the government to their demands for democratic reforms. The benchmark Hang Seng Index declined 1.28% to 22932.98, extending yesterday's 1.9% slump. Markets are closed for a two-day public holiday on Wednesday and Thursday, to mark China's National Day.
Shares of property developers and shopping mall operator continued their decline on speculation that fewer tourists will visit the city as protests drag on and that property prices could fall if political risks increase. Wharf Holdings, which owns two of the city's most popular shopping malls, Harbour City and Times Square, closed steady at HK$55.20 after recouping early losses. Sun Hung Kai Properties fell 1.78% to HK$110.10. Henderson Land Development Co shed 1.9% to HK$50.30. China Resources Land erased 2.1% to HK$16.
Shares of retailers closed steep lower, amid concerns protests across the city have had to shut many stores at a time when mainland Chinese tourists flock to the city. The National Day holiday on Wednesday marks one of the peak seasons for Hong Kong retailers. I.T. (00999) descended 3% to HK$2.61. Both Sa Sa (00178) and Bonjour Holdings dipped 2.7% to HK$1.07. The city's largest cosmetic retailer, Sa Sa International, closed steady at HK$5.22.
Sensex ends marginal higher in volatile trade
Indian stock market surrendered most of its early gains before ending the trade on selling in interest-sensitive stocks of banking and realty stocks, after the RBI kept interest rates unchanged in its bi-monthly monetary policy. The S&P BSE Sensex rose 33.40 points or 0.13% at 26,630.51, while The CNX Nifty rose 5.90 points or 0.07% at 7,964.80.
Interest rate sensitive banking and realty stocks declined after the RBI in its fourth bi-monthly monetary policy review today, 30 September 2014, kept key policy rates unchanged. PSU OMCs gained ahead of a fortnightly revision in fuel prices tomorrow, 1 October 2014. Tyre stocks rose across the board on persistent fall in rubber prices. Pharma stocks gained as rupee edged lower against the dollar.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.07% to 8966.92. South Korea's KOSPI index eased 0.32% to 2020.09. Indonesia's Jakarta Composite index sank 0.09% to 5137.58. Malaysia's KLCI eased 0.03 point to 1846.31. New Zealand's NZX50 slid 0.08% to 5255.04. Singapore's Straits Times index fell 0.39% at 3276.74.
