Asia Pacific market closed weaker on Friday, 26 September 2014, as risk
aversion selloff fuelled amidst concerns about global economic growth
after China signalled it wouldn't offer more aggressive stimulus
measures and Europe's economy showed signs of further slowdown.
Meanwhile, selloff pressure intensified on flaring up geopolitical
tensions in Russia and the Middle East. It's reported that Russia is
drafting bills to allow seizure of foreign assets in response to the
sanctions by US. The MSCI Asia Pacific Index lost 1% to 142.09.
Among Asian bourses
Aussie market plunges to a six-month low
Australian share market declined to lowest level in six-month, following selloff in global markets, amid concerns about the pace of global economic growth, international conflicts and fears of asset seizures in Russia. The benchmark S&P/ASX 200 Index declined 1.28% to 5313.40 and the broader All Ordinaries Index shed 1.22% to 5316.60. Turnover was relatively strong with 2.01 billion shares worth of A$5.33 billion traded today. For the week, the benchmark ASX200 index eased 2.2%, its fifth straight week of losses. The weekly loss shaved around $36 billion off the market's value.
The financial stocks ended lower, with top four banks being major losers. Commonwealth Bank of Australia declined 1.8% to A$75.26, National Australia Bank 1.2% to A$32.70, Westpac Banking Corp 1% to A$31.89 and ANZ Banking Group 1.1% to A$30.99.
Materials and resources stocks extended fall as the iron ore price dropped one% to another fresh five-year low amid worries over China's appetite for the commodity. Resources giant BHP Billiton dropped 1.8% to A$34.16 and main rival Rio Tinto fell 2.3% to A$60.11. Iron ore miner Fortescue Metals Group shed 2.2% to A$3.54. Gold stocks were the only bright spot as the precious commodity rose overnight. Gold miner Newcrest lifted 22 cents to A$10.54.
Nikkei falls 0.88% from seven-year high
Japanese share market closed down, as profit taking triggered across the board, led by exporters and other currency-sensitive stocks. The decline came on tracking sharp drop in the international markets, geopolitical tensions in Russia and the Middle East, and yen appreciation against the greenback. The key Nikkei 225 index at the Tokyo Stock Exchange, which closed at a seven-year high on Thursday, fell 0.88%, or 144.28 points, to 16229.86, while the Topix index of all first-section shares eased 1.08%, or 14.48 points, to 1331.95.
Shares of Exporters and other currency-sensitive companies were the main drag in Tokyo market, amid profit taking after sharp recent gains. The yen gained 0.1% to 108.60 per dollar after rising 0.3% yesterday.
Canon Inc, the world's biggest camera maker, lost 0.8% to 3567.50 yen. Toyota Motor Corp, the world's biggest automaker, sank 1.5% to 6453 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, slipped 1.9% to 3744.50 yen. Sony Corp., which gets 72% of its sales abroad, eased 0.1% to 1899 yen. Inpex Corp., an oil explorer that gets 91% of its revenue from outside Japan, dropped 2.2% to 1550 yen.
Fanuc shares gained 4.1% to 20,310 yen after factory-automation maker raised its annual profit forecast by 10% to 85.6 billion yen. Nitori gained 4.7% to 6,640 yen after the company reported a 24% increase in first-half net income to 22.1 billion yen.
Japan Display plunged 11% to 520 yen after Credit Suisse cut the stock's rating to neutral from outperform.
Shanghai Composite closes at 19-months high
Mainland China market closed volatile trading session at highest level in almost 19 months, registering fourth gain in row, thanks to the Asian Development Bank growth forecast for China's gross domestic product and hopes for additional monetary stimulus in China. The benchmark Shanghai Composite index advanced 2.61 points, or 0.11%, to finish at 2347.72, the highest close since 1 March 2013, when it finished at 2359.51. For the week, the index was up 0.8%.
The Asian Development Bank said in Beijing on Thursday that steady consumption and rising external demand will support economic growth in China this year. According to the Asian Development Outlook 2014, ADB's annual publication, its growth forecast for China's gross domestic product was flat at 7.5% this year and 7.4% next year.
The Wall Street Journal reported on Wednesday that Chinese President Xi Jinping is considering replacing its reform-minded central bank governor, Zhou Xiaochuan, which could mean a more accommodative monetary policy to support a slowing economy. If the report is confirmed, the move could be positive for the world's second-largest economy, as increased liquidity would help lower funding costs for companies. A change of the guard at the People's Bank of China might mean a more aggressively loose monetary policy going forward to help counter-act the growth slowdown.
Shares of agricultural companies surged on hopes that the rural land reform may pick up after the key meeting in October. Gansu Dunhuang Seed hit its 10% daily upside limit at CNY7.77, Xinjiang Guannong Fruit & Anlter Group jumped 8.7% to CNY19.44 and Gansu Yasheng Industrial (Group) added 7.1% to CNY9.04.
Power equipment manufacturers strengthened on hopes of better earnings performances after a long-anticipated restart of nuclear power plants. Shanghai Electric Group rose by its 10% daily upper limit to CNY5.47, China XD Electric gained 5.1% to CNY4.76 while NARI Technology advanced 3.1% to CNY16.85.
Hang Seng ends 0.38% down
Hong Kong share market declined, as selloff pressure dominated across the board, following the slide of the US equity markets overnight. Meanwhile, fears about the state of China's economy and signs of further slowdown in Europe's economy intensified selloff. The Hang Seng Index closed 89.72 points down at 23678.41. The benchmark saw its losses widen to 212 points at one stage, but the rebound of Macau gaming counters help recover part of the losses. Market turnover reduced to HK$66.79 billion, from Thursday's turnover of HK$81 billion.
Shares of Macau's gaming players rebounded across the board. Galaxy Ent (00027) gained 3.6% to HK$48. Sands China (01928) put on 2.8% to HK$42.45. Wynn Macau (01128) jumped 5% to HK$25.55. SJM (00880) and MGM China (02282) shot up 4% to HK$15.76 and HK$22.85. Melco (00200) added 2.2% to HK$18.8. Melco Crown (06883) edged up 0.2% to HK$68.6.
Shares of Bestway International jumped 21.8% to HK$1.51 after it agreed to place, on a best effort basis, up to 150 million new shares at HK$0.56 apiece and to issue warrants on the basis of one warrant for every three placing shares placed at HK$0.02 apiece. Each warrant will carry the right to subscribe for one warrant subscription share at HK$0.56, subject to adjustment.
China Environmental Resources shares closed 1.7% up at HK$0.295 despite the agricultural chemical company said its loss for the year ended 30 June 2014 widened to HK$69.16 million from HK$42.13 million for the previous financial year. The revenue was HK$9.96 million, a decrease of 67.9% from a year earlier. The loss included mainly the decrease of about HK$38.96 million in valuation of biological assets of which growth was affected by the shortage of underground water in the region.
Sensex climbs on S&P outlook revision
Indian stock market ended volatile session firmly higher after Standard & Poor's raised the country's credit rating outlook to stable from negative. At provisional finish, the 30-share BSE index Sensex jumped 157.96 points at 26626.32 and the 50-share NSE index Nifty gained 57 points at 7968.85.
Meanwhile, the rupee also showed signs of recovery after the S&P upgrade. The Indian currency that hit the day's low of 61.62 gained over 60 paise.
S&P on Friday revised India's credit outlook up to 'stable' from 'negative'. While the agency maintained India's rating at BBB-, the revision in outlook will serve to be a positive for India. S&P said, "The outlook indicates government can implement fiscal & economic reform. Rating outlook revision shows improved political setting." "Political setting offers conducive environment for reforms. Government reform pick-up may let RBI draft effective policy," it said.
Among BSE sectoral indices, metal, PSU, healthcare and banking indices were the star-performers and were up 2.5%, 2.3%, 2.2% and 1.9%, respectively. On the other hand, TECk index fell the most by 0.6%, followed by IT 0.5% and FMCG 0.5%.
Hindalco, Sun Pharma, M&M, ONGC and Tata Steel were the major Sensex gainers, while the major losers were Dr Reddy's, HDFC, Hero MotoCorp, GAIL and ITC.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.24% to 8989.82. South Korea's KOSPI index eased 0.12% to 2031.64. Indonesia's Jakarta Composite index dropped 1.32% to 5132.56. Malaysia's KLCI sank 0.14% to 1840.50. New Zealand's NZX50 dropped 0.46% to 5253.49. Singapore's Straits Times index rose 0.04% at 3292.21.
Among Asian bourses
Aussie market plunges to a six-month low
Australian share market declined to lowest level in six-month, following selloff in global markets, amid concerns about the pace of global economic growth, international conflicts and fears of asset seizures in Russia. The benchmark S&P/ASX 200 Index declined 1.28% to 5313.40 and the broader All Ordinaries Index shed 1.22% to 5316.60. Turnover was relatively strong with 2.01 billion shares worth of A$5.33 billion traded today. For the week, the benchmark ASX200 index eased 2.2%, its fifth straight week of losses. The weekly loss shaved around $36 billion off the market's value.
The financial stocks ended lower, with top four banks being major losers. Commonwealth Bank of Australia declined 1.8% to A$75.26, National Australia Bank 1.2% to A$32.70, Westpac Banking Corp 1% to A$31.89 and ANZ Banking Group 1.1% to A$30.99.
Materials and resources stocks extended fall as the iron ore price dropped one% to another fresh five-year low amid worries over China's appetite for the commodity. Resources giant BHP Billiton dropped 1.8% to A$34.16 and main rival Rio Tinto fell 2.3% to A$60.11. Iron ore miner Fortescue Metals Group shed 2.2% to A$3.54. Gold stocks were the only bright spot as the precious commodity rose overnight. Gold miner Newcrest lifted 22 cents to A$10.54.
Nikkei falls 0.88% from seven-year high
Japanese share market closed down, as profit taking triggered across the board, led by exporters and other currency-sensitive stocks. The decline came on tracking sharp drop in the international markets, geopolitical tensions in Russia and the Middle East, and yen appreciation against the greenback. The key Nikkei 225 index at the Tokyo Stock Exchange, which closed at a seven-year high on Thursday, fell 0.88%, or 144.28 points, to 16229.86, while the Topix index of all first-section shares eased 1.08%, or 14.48 points, to 1331.95.
Shares of Exporters and other currency-sensitive companies were the main drag in Tokyo market, amid profit taking after sharp recent gains. The yen gained 0.1% to 108.60 per dollar after rising 0.3% yesterday.
Canon Inc, the world's biggest camera maker, lost 0.8% to 3567.50 yen. Toyota Motor Corp, the world's biggest automaker, sank 1.5% to 6453 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, slipped 1.9% to 3744.50 yen. Sony Corp., which gets 72% of its sales abroad, eased 0.1% to 1899 yen. Inpex Corp., an oil explorer that gets 91% of its revenue from outside Japan, dropped 2.2% to 1550 yen.
Fanuc shares gained 4.1% to 20,310 yen after factory-automation maker raised its annual profit forecast by 10% to 85.6 billion yen. Nitori gained 4.7% to 6,640 yen after the company reported a 24% increase in first-half net income to 22.1 billion yen.
Japan Display plunged 11% to 520 yen after Credit Suisse cut the stock's rating to neutral from outperform.
Shanghai Composite closes at 19-months high
Mainland China market closed volatile trading session at highest level in almost 19 months, registering fourth gain in row, thanks to the Asian Development Bank growth forecast for China's gross domestic product and hopes for additional monetary stimulus in China. The benchmark Shanghai Composite index advanced 2.61 points, or 0.11%, to finish at 2347.72, the highest close since 1 March 2013, when it finished at 2359.51. For the week, the index was up 0.8%.
The Asian Development Bank said in Beijing on Thursday that steady consumption and rising external demand will support economic growth in China this year. According to the Asian Development Outlook 2014, ADB's annual publication, its growth forecast for China's gross domestic product was flat at 7.5% this year and 7.4% next year.
The Wall Street Journal reported on Wednesday that Chinese President Xi Jinping is considering replacing its reform-minded central bank governor, Zhou Xiaochuan, which could mean a more accommodative monetary policy to support a slowing economy. If the report is confirmed, the move could be positive for the world's second-largest economy, as increased liquidity would help lower funding costs for companies. A change of the guard at the People's Bank of China might mean a more aggressively loose monetary policy going forward to help counter-act the growth slowdown.
Shares of agricultural companies surged on hopes that the rural land reform may pick up after the key meeting in October. Gansu Dunhuang Seed hit its 10% daily upside limit at CNY7.77, Xinjiang Guannong Fruit & Anlter Group jumped 8.7% to CNY19.44 and Gansu Yasheng Industrial (Group) added 7.1% to CNY9.04.
Power equipment manufacturers strengthened on hopes of better earnings performances after a long-anticipated restart of nuclear power plants. Shanghai Electric Group rose by its 10% daily upper limit to CNY5.47, China XD Electric gained 5.1% to CNY4.76 while NARI Technology advanced 3.1% to CNY16.85.
Hang Seng ends 0.38% down
Hong Kong share market declined, as selloff pressure dominated across the board, following the slide of the US equity markets overnight. Meanwhile, fears about the state of China's economy and signs of further slowdown in Europe's economy intensified selloff. The Hang Seng Index closed 89.72 points down at 23678.41. The benchmark saw its losses widen to 212 points at one stage, but the rebound of Macau gaming counters help recover part of the losses. Market turnover reduced to HK$66.79 billion, from Thursday's turnover of HK$81 billion.
Shares of Macau's gaming players rebounded across the board. Galaxy Ent (00027) gained 3.6% to HK$48. Sands China (01928) put on 2.8% to HK$42.45. Wynn Macau (01128) jumped 5% to HK$25.55. SJM (00880) and MGM China (02282) shot up 4% to HK$15.76 and HK$22.85. Melco (00200) added 2.2% to HK$18.8. Melco Crown (06883) edged up 0.2% to HK$68.6.
Shares of Bestway International jumped 21.8% to HK$1.51 after it agreed to place, on a best effort basis, up to 150 million new shares at HK$0.56 apiece and to issue warrants on the basis of one warrant for every three placing shares placed at HK$0.02 apiece. Each warrant will carry the right to subscribe for one warrant subscription share at HK$0.56, subject to adjustment.
China Environmental Resources shares closed 1.7% up at HK$0.295 despite the agricultural chemical company said its loss for the year ended 30 June 2014 widened to HK$69.16 million from HK$42.13 million for the previous financial year. The revenue was HK$9.96 million, a decrease of 67.9% from a year earlier. The loss included mainly the decrease of about HK$38.96 million in valuation of biological assets of which growth was affected by the shortage of underground water in the region.
Sensex climbs on S&P outlook revision
Indian stock market ended volatile session firmly higher after Standard & Poor's raised the country's credit rating outlook to stable from negative. At provisional finish, the 30-share BSE index Sensex jumped 157.96 points at 26626.32 and the 50-share NSE index Nifty gained 57 points at 7968.85.
Meanwhile, the rupee also showed signs of recovery after the S&P upgrade. The Indian currency that hit the day's low of 61.62 gained over 60 paise.
S&P on Friday revised India's credit outlook up to 'stable' from 'negative'. While the agency maintained India's rating at BBB-, the revision in outlook will serve to be a positive for India. S&P said, "The outlook indicates government can implement fiscal & economic reform. Rating outlook revision shows improved political setting." "Political setting offers conducive environment for reforms. Government reform pick-up may let RBI draft effective policy," it said.
Among BSE sectoral indices, metal, PSU, healthcare and banking indices were the star-performers and were up 2.5%, 2.3%, 2.2% and 1.9%, respectively. On the other hand, TECk index fell the most by 0.6%, followed by IT 0.5% and FMCG 0.5%.
Hindalco, Sun Pharma, M&M, ONGC and Tata Steel were the major Sensex gainers, while the major losers were Dr Reddy's, HDFC, Hero MotoCorp, GAIL and ITC.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.24% to 8989.82. South Korea's KOSPI index eased 0.12% to 2031.64. Indonesia's Jakarta Composite index dropped 1.32% to 5132.56. Malaysia's KLCI sank 0.14% to 1840.50. New Zealand's NZX50 dropped 0.46% to 5253.49. Singapore's Straits Times index rose 0.04% at 3292.21.
