Asia Pacific share market declined on Wednesday, 10 September 2014, as
profit booking pressure sparked by concern that the Federal Reserve
would raise interest rates earlier than expected. Meanwhile selloff
pressure intensified on persistent concerns over Scotland's future,
weaker than expected growth in Japanese machinery orders and indication
of slowdown in China money-supply growth. The MSCI Asia Pacific Index
fell 0.8% to 146.53.
Regional market followed broad weakness on Wall Street the previous day due to worries the US Federal Reserve would raise interest rates earlier than expected. Higher interest rates could lure money to the US from emerging markets.
Adding to gloom, The Japan's Cabinet Office said on Wednesday that core machine orders climbed 3.5% on month to 771.7 billion yen in July, following the 8.8% spike in June. On a yearly basis, core machine orders were up 1.1% following the 3.0% contraction in the previous month. But market analysts said the data failed to dispel some doubts about the strength of business investment that is needed to propel Japan out of the slump caused by April's sales tax hike. The data followed a recent run of weak economic indicators that suggest a rebound expected this quarter from April's slump may not prove as strong as originally thought. Weak readings cloud the prospects of a planned increase in the sales tax in October 2015, while keeping policymakers under pressure to provide fresh stimulus to prop up the economy.
Premier Li Keqiang said on Monday in the north-eastern city of Tianjin on the eve of the World Economic Forum gathering that China's money-supply growth slowed in August to its lowest level in five months, as he stressed Beijing's commitment to shift away from printing money to stimulate growth. Mr. Li said China's broadest measure of money supply, M2, was up 12.8% on-year at the end of August. That would mark the slowest growth in five months. It is slower than the 13.5% rise at the end of July.
Among Asian bourses
Nikkei extends gain as yen depreciates to six-year low
Japanese share market closed higher after clawing back early losses, thanks to yen depreciation to a six-year low against the greenback, which giving a boost to export related shares. The benchmark Nikkei 225 index was up 0.25%, or 39.63 points, to 15788.78, while the Topix index of all first-section shares added 0.55%, or 7.17 points, to end at 1306.79.
Investors showed a muted reaction to comments by a senior Bank of Japan official earlier Wednesday. Deputy Gov. Kikuo Iwata said the central bank can reach its 2% inflation target by taking appropriate monetary policy steps, downplaying the view that the central bank is relying on a weaker yen to attain its goal. Mr. Iwata defended the more aggressive easing approach rolled out in April 2013, saying it has produced the intended effects on prices and the economy.
Export related stocks extended gains, on the back of yen weakening against the greenback. The weaker yen benefits Japanese exporters by increasing their overseas earnings in yen terms while giving them scope to price goods more competitively in foreign markets. Canon Inc, the world's biggest camera maker, gained 0.8% to 3495 yen. Toyota Motor Corp, the world's biggest automaker, advanced 0.7% to 6170 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, advanced 1% to 3627.5 yen.
Rakuten Inc. added 4.9% to 1,316 yen after the e-commerce business agreed to buy U.S shopping-site operator Ebates Inc. The firm will pay $1 billion in cash for all of Ebates, a San Francisco-based website operator that offers cash back to customers who buy products ranging from laptops to lipstick from its retail partners.
Kyushu Electric Power Co jumped 4.5% to 1,103 yen after a safety report on two of its reactors was approved by a nuclear regulator.
Aussie market falls on weak global cues
Australian share market declined, on tracking drop in the Wall Street overnight, with shares of the realty, consumer goods, industrial and material sectors being major losers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each declined by 0.6% to 554.30 points and 5574.40 points, respectively. Turnover was light with 1.78 billion shares worth of A$3.67 billion traded today.
Sydney market opened lower, following a selloff on Wall Street overnight sparked by concern of an early rate hike in the US. Investor gloom intensified after the Melbourne Institute and Westpac's index of consumer sentiment plunged 4.6% in September after a 3.8% rise in August. Households were becoming more concerned about employment and the economic outlook.
Shares of retailers and consumer goods producers declined as Westpac Melbourne Institute Index of Consumer Sentiment data showed that consumer confidence has dropped again by 4.5% in September to 94 points amid renewed worries about the federal budget.
Supermarket operator Woolworths lost 2.25% to A$35.66. Discretionary retailer JB Hi-Fi was lower by 0.2% to A$17.05 and Harvey Norman shed 1.3% to A$3.72.
Materials and resources stocks declined, with resource giant BHP Billiton falling 0.8% to A$35.80 and Rio Tinto erasing 0.4% to A$61.53 as the benchmark iron ore spot price dropped to a fresh five-year low of $US83.20 a tonne on Tuesday. Fortescue Metals sank 2.7% to A$3.93 after the company said the Western Australian government plans to introduce legislation to validate a number of past environmental approvals.
Shanghai Composite falls 0.35% from 19-month high
Mainland China share market drifted lower, amid profit taking pressure across the board, after Premier Li Keqiang indicated money-supply growth slowed in August and investors judged recent gains to be excessive. The seven out of ten SSE sectors declined, with shares of energy and financial companies being major losers. The benchmark Shanghai Composite closed 08.22 points down at 2318.31. The CSI 300 declined 12.79 points to 2432.43.
Shares of energy and realty companies declined the most in Shanghai market today amidst profit booking following strong recent gains. PetroChina shares slid 0.7% to 8.03 yuan and CNOOC fell 3.3% to 15.06 yuan. China Vanke, the nation's biggest listed property developer, slid 1.7% to 9.46 yuan, Poly Real Estate, the second largest, fell 1.6% to 5.71 yuan. Gemdale Corp. slipped 0.8% to 9.05 yuan.
Hang Seng slips for fourth day
Headline shares of the Hong Kong market ended significantly lower, following a losing session on Wall Street, as trading resumed after the Mid-Autumn Festival holiday. Meanwhile selloff pressure intensified after China's Premier Li Keqiang indicated money-supply growth slowed last month. The Hang Seng Index ended 485.09 points, or 1.93%, down at 24705.36, registering fourth session of consecutive drop. Market turnover increased to HK$79.72 billion from HK$56.44 billion on Monday.
Real-estate stocks retreated after a survey said housing inventories in first-tier cities such as Beijing and Shanghai were up sharply as of the end of last month. China Resources Land slid 4.8% to HK$17.90, Evergrande Real Estate Group fell 2.3% to HK$3.21, and China Vanke Co declined 2.7% to HK$15.02.
Mainland Chinese banks also saw broad weakness, as China Citic Bank Corp gave up 2.2% to HK$4.89, Industrial & Commercial Bank of China fell 2.4% to HK$5.19, and China Merchants Bank Co dropped 2.8% to HK$10.71.
Casino stocks stumbled after Nomura Holdings Inc. said it expects Macau gaming revenue to fall as much as 10% this month. Sands China slipped 2.3% to HK$46.75, while SJM Holdings dropped 3.4% to HK$18.12.
Chinese Internet major Tencent Holdings, a top rival of e-commerce giant Alibaba, tumbled 3.3% to HK$122, as Alibaba unveiled a seemingly conservative price range for its upcoming U.S. IPO and kicked off the roadshow in New York on Monday.
Sensex down on profit-booking
Indian stock market ended lower as funds and investors indulged in booking profits in recent gainers amid a weak trend overseas, with shares of consumer goods makers, oil and gas and information technology (IT) companies being major losers. The Sensex provisionally closed 0.76%, or 207.91 points, lower at 27,057.41 points, while the National Stock Exchange's broader barometer 50-share CNX Nifty lost 0.72%, or 58.85 points, to provisionally end at 8,094.10 points.
Cigarette major ITC ended lower on reports that the government is considering a proposal to ban the sale of loose cigarettes. The stock shed 1.85% at Rs 351.05. The stock hit high of Rs 357.85 and low of Rs 350.50. A ban on sale of loose cigarettes will hit cigarette makers hard as 70% of retail sales of cigarettes take place in this form, according to reports. A ban on sale of loose cigarettes is among measures proposed by an expert panel set up by the health ministry, according to reports. Other suggestions include raising the age limit for consumption and increasing the fine for smoking in public spaces to Rs 20,000 from Rs 200, apart from making this a cognizable offence.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index declined 0.82% to 9357.61. Singapore's Straits Times index fell 0.13% to 3338.63. Malaysia's KLCI has lost 0.2% to 1870.44. New Zealand's NZX50 dropped 0.13% to 5236.66. Indonesia's Jakarta Composite index declined 1.04% to 5142.99.
Regional market followed broad weakness on Wall Street the previous day due to worries the US Federal Reserve would raise interest rates earlier than expected. Higher interest rates could lure money to the US from emerging markets.
Adding to gloom, The Japan's Cabinet Office said on Wednesday that core machine orders climbed 3.5% on month to 771.7 billion yen in July, following the 8.8% spike in June. On a yearly basis, core machine orders were up 1.1% following the 3.0% contraction in the previous month. But market analysts said the data failed to dispel some doubts about the strength of business investment that is needed to propel Japan out of the slump caused by April's sales tax hike. The data followed a recent run of weak economic indicators that suggest a rebound expected this quarter from April's slump may not prove as strong as originally thought. Weak readings cloud the prospects of a planned increase in the sales tax in October 2015, while keeping policymakers under pressure to provide fresh stimulus to prop up the economy.
Premier Li Keqiang said on Monday in the north-eastern city of Tianjin on the eve of the World Economic Forum gathering that China's money-supply growth slowed in August to its lowest level in five months, as he stressed Beijing's commitment to shift away from printing money to stimulate growth. Mr. Li said China's broadest measure of money supply, M2, was up 12.8% on-year at the end of August. That would mark the slowest growth in five months. It is slower than the 13.5% rise at the end of July.
Among Asian bourses
Nikkei extends gain as yen depreciates to six-year low
Japanese share market closed higher after clawing back early losses, thanks to yen depreciation to a six-year low against the greenback, which giving a boost to export related shares. The benchmark Nikkei 225 index was up 0.25%, or 39.63 points, to 15788.78, while the Topix index of all first-section shares added 0.55%, or 7.17 points, to end at 1306.79.
Investors showed a muted reaction to comments by a senior Bank of Japan official earlier Wednesday. Deputy Gov. Kikuo Iwata said the central bank can reach its 2% inflation target by taking appropriate monetary policy steps, downplaying the view that the central bank is relying on a weaker yen to attain its goal. Mr. Iwata defended the more aggressive easing approach rolled out in April 2013, saying it has produced the intended effects on prices and the economy.
Export related stocks extended gains, on the back of yen weakening against the greenback. The weaker yen benefits Japanese exporters by increasing their overseas earnings in yen terms while giving them scope to price goods more competitively in foreign markets. Canon Inc, the world's biggest camera maker, gained 0.8% to 3495 yen. Toyota Motor Corp, the world's biggest automaker, advanced 0.7% to 6170 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, advanced 1% to 3627.5 yen.
Rakuten Inc. added 4.9% to 1,316 yen after the e-commerce business agreed to buy U.S shopping-site operator Ebates Inc. The firm will pay $1 billion in cash for all of Ebates, a San Francisco-based website operator that offers cash back to customers who buy products ranging from laptops to lipstick from its retail partners.
Kyushu Electric Power Co jumped 4.5% to 1,103 yen after a safety report on two of its reactors was approved by a nuclear regulator.
Aussie market falls on weak global cues
Australian share market declined, on tracking drop in the Wall Street overnight, with shares of the realty, consumer goods, industrial and material sectors being major losers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each declined by 0.6% to 554.30 points and 5574.40 points, respectively. Turnover was light with 1.78 billion shares worth of A$3.67 billion traded today.
Sydney market opened lower, following a selloff on Wall Street overnight sparked by concern of an early rate hike in the US. Investor gloom intensified after the Melbourne Institute and Westpac's index of consumer sentiment plunged 4.6% in September after a 3.8% rise in August. Households were becoming more concerned about employment and the economic outlook.
Shares of retailers and consumer goods producers declined as Westpac Melbourne Institute Index of Consumer Sentiment data showed that consumer confidence has dropped again by 4.5% in September to 94 points amid renewed worries about the federal budget.
Supermarket operator Woolworths lost 2.25% to A$35.66. Discretionary retailer JB Hi-Fi was lower by 0.2% to A$17.05 and Harvey Norman shed 1.3% to A$3.72.
Materials and resources stocks declined, with resource giant BHP Billiton falling 0.8% to A$35.80 and Rio Tinto erasing 0.4% to A$61.53 as the benchmark iron ore spot price dropped to a fresh five-year low of $US83.20 a tonne on Tuesday. Fortescue Metals sank 2.7% to A$3.93 after the company said the Western Australian government plans to introduce legislation to validate a number of past environmental approvals.
Shanghai Composite falls 0.35% from 19-month high
Mainland China share market drifted lower, amid profit taking pressure across the board, after Premier Li Keqiang indicated money-supply growth slowed in August and investors judged recent gains to be excessive. The seven out of ten SSE sectors declined, with shares of energy and financial companies being major losers. The benchmark Shanghai Composite closed 08.22 points down at 2318.31. The CSI 300 declined 12.79 points to 2432.43.
Shares of energy and realty companies declined the most in Shanghai market today amidst profit booking following strong recent gains. PetroChina shares slid 0.7% to 8.03 yuan and CNOOC fell 3.3% to 15.06 yuan. China Vanke, the nation's biggest listed property developer, slid 1.7% to 9.46 yuan, Poly Real Estate, the second largest, fell 1.6% to 5.71 yuan. Gemdale Corp. slipped 0.8% to 9.05 yuan.
Hang Seng slips for fourth day
Headline shares of the Hong Kong market ended significantly lower, following a losing session on Wall Street, as trading resumed after the Mid-Autumn Festival holiday. Meanwhile selloff pressure intensified after China's Premier Li Keqiang indicated money-supply growth slowed last month. The Hang Seng Index ended 485.09 points, or 1.93%, down at 24705.36, registering fourth session of consecutive drop. Market turnover increased to HK$79.72 billion from HK$56.44 billion on Monday.
Real-estate stocks retreated after a survey said housing inventories in first-tier cities such as Beijing and Shanghai were up sharply as of the end of last month. China Resources Land slid 4.8% to HK$17.90, Evergrande Real Estate Group fell 2.3% to HK$3.21, and China Vanke Co declined 2.7% to HK$15.02.
Mainland Chinese banks also saw broad weakness, as China Citic Bank Corp gave up 2.2% to HK$4.89, Industrial & Commercial Bank of China fell 2.4% to HK$5.19, and China Merchants Bank Co dropped 2.8% to HK$10.71.
Casino stocks stumbled after Nomura Holdings Inc. said it expects Macau gaming revenue to fall as much as 10% this month. Sands China slipped 2.3% to HK$46.75, while SJM Holdings dropped 3.4% to HK$18.12.
Chinese Internet major Tencent Holdings, a top rival of e-commerce giant Alibaba, tumbled 3.3% to HK$122, as Alibaba unveiled a seemingly conservative price range for its upcoming U.S. IPO and kicked off the roadshow in New York on Monday.
Sensex down on profit-booking
Indian stock market ended lower as funds and investors indulged in booking profits in recent gainers amid a weak trend overseas, with shares of consumer goods makers, oil and gas and information technology (IT) companies being major losers. The Sensex provisionally closed 0.76%, or 207.91 points, lower at 27,057.41 points, while the National Stock Exchange's broader barometer 50-share CNX Nifty lost 0.72%, or 58.85 points, to provisionally end at 8,094.10 points.
Cigarette major ITC ended lower on reports that the government is considering a proposal to ban the sale of loose cigarettes. The stock shed 1.85% at Rs 351.05. The stock hit high of Rs 357.85 and low of Rs 350.50. A ban on sale of loose cigarettes will hit cigarette makers hard as 70% of retail sales of cigarettes take place in this form, according to reports. A ban on sale of loose cigarettes is among measures proposed by an expert panel set up by the health ministry, according to reports. Other suggestions include raising the age limit for consumption and increasing the fine for smoking in public spaces to Rs 20,000 from Rs 200, apart from making this a cognizable offence.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index declined 0.82% to 9357.61. Singapore's Straits Times index fell 0.13% to 3338.63. Malaysia's KLCI has lost 0.2% to 1870.44. New Zealand's NZX50 dropped 0.13% to 5236.66. Indonesia's Jakarta Composite index declined 1.04% to 5142.99.
