Headline shares of the Asia Pacific market mixed on Wednesday, 24
September 2014, amid concerns about the pace of global economic growth
and renewed worries over geopolitical tension after US air strikes
launched in Syria against Islamic State fighters.
The China Beige Book, a report published quarterly by New York-based China Beige Book International, said the economy remained stuck in “low gear” this quarter amid struggles in the residential property and retail sectors.
The United States and its Arab allies bombed militant groups in Syria for the first time on Tuesday, opening a new front amid shifting Middle East alliances and sapping demand for risk. Saudi Arabia, Jordan, the United Arab Emirates, Qatar and Bahrain “participated in or supported” strikes against 14 Islamic State targets near their stronghold of Raqqa and along the Iraqi border, the Pentagon said in an e-mailed statement yesterday. Airstrikes against the militant Khorasan Group in Syria were prompted by plans for an “imminent” terror attack on U.S. soil, the Pentagon said.
Among Asian bourses
Nikkei falls 0.24%
Japanese share market declined, as profit booking triggered on tracking losses in US and European markets overnight and yen strengthening against the US dollar amid escalating conflict in the Middle East. The Nikkei 225 index lost 0.24%, or 38.45 points, to 16167.45, while the Topix index of all first-section shares fell 0.35%, or 4.70 points, to 1326.18.
Shares of exporters and other currency-sensitive companies declined the most in Tokyo as the yen climbed against greenback. The yen gained 0.2% to 108.66 per dollar. Canon Inc, the world's biggest camera maker, lost 1.1% to 3584 yen. Toyota Motor Corp, the world's biggest automaker, erased 1.1% to 6423 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, eased 0.1% to 3771 yen.
Shares of mall operator Aeon Co fell 2.7% on reports that it will convert its Daiei supermarket operator subsidiary into a wholly owned unit in order to speed up the process of restructuring its lackluster supermarket business. Daiei Inc shares gained 17% to 142 yen.
Shares of general contractors jumped, with Kumagai Gumi rising 2.1%, Tekken up 1.8%, and Kajima gaining 3.4%. The sector interest coincided with published construction statistics by the Ministry of Land, Infrastructure, Transport and Tourism putting the total value of unfinished works at Y28 trillion as at end-July, of which public works accounted for Y17 trillion--the highest level on record.
Shares of Japanese component makers that supply to Apple also ended higher after news that Apple's latest iPhone 6 and iPhone 6 Plus cell phones have sold some 10 million units in the three days since their September 19 debut. Murata Manufacturing rose 1.4%, while Alps Electric added 1.8% and Japan Display rose 1.9%.
Aussie shares fall on profit taking
Australian share market ended lower, erasing most of yesterday gain, amid concerns about the pace of global economic growth along with conflict in the Middle East after US air strikes launched in Syria against Islamic State fighters. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.74% to 5375.80 and 5375.90, respectively. Turnover was relatively light with 1.91 billion shares worth of A$4.19 billion traded today.
The financial stocks ended lower, with top four big banks being major losers amidst looming threat of the Reserve Bank of Australia tightening home loan standards to take the heat out of the housing market. On Wednesday, the central bank in its biannual financial stability report said it was in talks with other regulatory bodies to take "additional steps that might be taken to reinforce sound lending practices, particularly for lending to investors". Among lenders, Commonwealth Bank of Australia declined 1.1% to A$76.42, Westpac Banking Corp 0.9% to A$32.47, ANZ Banking Group 0.9% to A$32.47 and National Australia Bank 1.4% to A$33.04.
Materials and resources stocks were mixed after the Bureau of Resource Economics and Energy on Wednesday downgraded its forecast for iron ore to $US94 a tonne from the June forecast of $US105. Resources giant BHP Billiton fell 0.7% to A$34.69 while main rival Rio Tinto gained 0.9% to A$60.75. Iron ore miner Fortescue Metals Group stayed still at A$3.66.
Shanghai Composite surges 1.47%
Mainland China share market advanced to highest level in more than 18 months, as investors returned to the market after private survey data showed that China's manufacturing activity picked up pace in September. The benchmark Shanghai Composite index advanced 33.86 points, or 1.47%, to finish at 2343.57, the highest close since Mar. 6, 2013, when it finished at 2347.18.
The strength over the past two sessions came after a closely-watched gauge for the country's manufacturing activity ticked up for September, easing concern about a slowdown in the second-largest economy. The HSBC flash manufacturing Purchasing Managers' Index (PMI) rose to 50.5 from a final reading of 50.2 in August. The final HSBC/Markit manufacturing PMI for the month is due on Sept. 30, while the official reading from the National Bureau of Statistics and China Federation of Logistics and Purchasing will be released on October 1.
Shares of brokerages companies closed higher on hopes for solid earnings growth because of a higher stock trading volume and an imminent start of the Shanghai-Hong Kong stock connect program in October. Both Changjiang Securities and Western Securities rose to their 10% maximum to 6.77 yuan and 14.08 yuan, respectively. Everbright Securities added 4% to 9.52 yuan.
Defense stocks also ended higher amid hopes for asset injections. Jiangxi Hongdu Aviation Industry hit its 10% daily upper limit at 27.58 yuan, Hafei Aviation Industry surged 8.1% to 36.28 yuan and Zhonghang Heibao advanced 5.8% to 12.69 yuan.
Hang Seng ends 0.35% up
Hong Kong share market finished the session modest higher, following gain on the Mainland A-shares after signs of an improvement in the Chinese economy and on hopes of fresh measures to boost the Chinese economy. The Hang Seng Index closed 84.54 points, or 0.35%, up at 23921.61. Market turnover increased to HK$75.24 billion, from Tuesday's turnover of HK$71.56 billion.
Bank of China rose 1.4% to HK$3.62 and Agricultural Bank of China rose 0.3% to HK$3.54 after the two state-owned giants received the regulator's approval to issue the country's first preferred shares to reduce financial stress.
Mobile operators China Telecom Corp jumped 5.2% to HK$5.04 after BNP Paribas raised its target price. China Unicom edged up 0.3% to HK$12.38 after reports said Apple Inc.'s iPhone6 has entered the final stage for approval in mainland China.
Shares of Macau gaming players remained under pressure. Galaxy Ent (00027) dipped 1.5% to HK$48.05. Sands China (01928) declined 1.6% to HK$42.55. But Melco Crown (06883) put on 3.3% to HK$69.05.
Sensex, Nifty hit one-week closing low
Indian stock market registered small losses at close after the Supreme Court in its verdict announced today, 24 September 2014, scrapped 214 out of 218 coal blocks allocated between 1993 and 2010 it had already declared illegal due to irregularities in the allocation of the blocks. The S&P BSE Sensex lost 31 points or 0.12% to settle at 26,744.69. The CNX Nifty shed 15.15 points or 0.19% to settle at 8,002.40, its lowest closing level since 17 September 2014.
Bank stocks declined on concerns of bad loans due to their exposure to coal mines after the Supreme Court's verdict on coal block allocation. Shares of Coal India jumped. Capital goods stocks declined. IT stocks were mixed. Titan Company advanced after board's in-principle nod to spin off the precision engineering division of the company as a wholly owned subsidiary. Thermax surged after the company's joint venture with a US-based firm received an order worth about Rs 339 crore. Oracle Financial Services Software tumbled on turning ex-dividend today, 24 September 2014. CARE tumbled on turning ex-dividend today, 24 September 2014.
The Supreme Court in its final verdict has given six months' breathing time for the blocks to wind up operations. The Supreme Court said that it saw no reason to save the blocks as the allocations were arbitrary. Allottees have been asked to pay a fine of Rs. 295 per tonne from the time the coal was mined. The government is now free to auction or allot the blocks to central firms. The 4 coal blocks which are exempt from the verdict are run by the Central government with no joint venture with the private sector.
Meanwhile, Prime Minister Narendra Modi leaves for a five-day visit to the United States tomorrow, 25 September 2014, hours after the launch of the "Make in India" campaign in Delhi.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.15% to 9098.49. South Korea's KOSPI index gained 0.33% to 2035.64. Indonesia's Jakarta Composite index fell 0.27% to 5174.01. Malaysia's KLCI dropped 0.01% to 1840.08. New Zealand's NZX50 jumped 0.32% to 5258.17. Singapore's Straits Times index fell 0.16% at 3292.81.
The China Beige Book, a report published quarterly by New York-based China Beige Book International, said the economy remained stuck in “low gear” this quarter amid struggles in the residential property and retail sectors.
The United States and its Arab allies bombed militant groups in Syria for the first time on Tuesday, opening a new front amid shifting Middle East alliances and sapping demand for risk. Saudi Arabia, Jordan, the United Arab Emirates, Qatar and Bahrain “participated in or supported” strikes against 14 Islamic State targets near their stronghold of Raqqa and along the Iraqi border, the Pentagon said in an e-mailed statement yesterday. Airstrikes against the militant Khorasan Group in Syria were prompted by plans for an “imminent” terror attack on U.S. soil, the Pentagon said.
Among Asian bourses
Nikkei falls 0.24%
Japanese share market declined, as profit booking triggered on tracking losses in US and European markets overnight and yen strengthening against the US dollar amid escalating conflict in the Middle East. The Nikkei 225 index lost 0.24%, or 38.45 points, to 16167.45, while the Topix index of all first-section shares fell 0.35%, or 4.70 points, to 1326.18.
Shares of exporters and other currency-sensitive companies declined the most in Tokyo as the yen climbed against greenback. The yen gained 0.2% to 108.66 per dollar. Canon Inc, the world's biggest camera maker, lost 1.1% to 3584 yen. Toyota Motor Corp, the world's biggest automaker, erased 1.1% to 6423 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, eased 0.1% to 3771 yen.
Shares of mall operator Aeon Co fell 2.7% on reports that it will convert its Daiei supermarket operator subsidiary into a wholly owned unit in order to speed up the process of restructuring its lackluster supermarket business. Daiei Inc shares gained 17% to 142 yen.
Shares of general contractors jumped, with Kumagai Gumi rising 2.1%, Tekken up 1.8%, and Kajima gaining 3.4%. The sector interest coincided with published construction statistics by the Ministry of Land, Infrastructure, Transport and Tourism putting the total value of unfinished works at Y28 trillion as at end-July, of which public works accounted for Y17 trillion--the highest level on record.
Shares of Japanese component makers that supply to Apple also ended higher after news that Apple's latest iPhone 6 and iPhone 6 Plus cell phones have sold some 10 million units in the three days since their September 19 debut. Murata Manufacturing rose 1.4%, while Alps Electric added 1.8% and Japan Display rose 1.9%.
Aussie shares fall on profit taking
Australian share market ended lower, erasing most of yesterday gain, amid concerns about the pace of global economic growth along with conflict in the Middle East after US air strikes launched in Syria against Islamic State fighters. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.74% to 5375.80 and 5375.90, respectively. Turnover was relatively light with 1.91 billion shares worth of A$4.19 billion traded today.
The financial stocks ended lower, with top four big banks being major losers amidst looming threat of the Reserve Bank of Australia tightening home loan standards to take the heat out of the housing market. On Wednesday, the central bank in its biannual financial stability report said it was in talks with other regulatory bodies to take "additional steps that might be taken to reinforce sound lending practices, particularly for lending to investors". Among lenders, Commonwealth Bank of Australia declined 1.1% to A$76.42, Westpac Banking Corp 0.9% to A$32.47, ANZ Banking Group 0.9% to A$32.47 and National Australia Bank 1.4% to A$33.04.
Materials and resources stocks were mixed after the Bureau of Resource Economics and Energy on Wednesday downgraded its forecast for iron ore to $US94 a tonne from the June forecast of $US105. Resources giant BHP Billiton fell 0.7% to A$34.69 while main rival Rio Tinto gained 0.9% to A$60.75. Iron ore miner Fortescue Metals Group stayed still at A$3.66.
Shanghai Composite surges 1.47%
Mainland China share market advanced to highest level in more than 18 months, as investors returned to the market after private survey data showed that China's manufacturing activity picked up pace in September. The benchmark Shanghai Composite index advanced 33.86 points, or 1.47%, to finish at 2343.57, the highest close since Mar. 6, 2013, when it finished at 2347.18.
The strength over the past two sessions came after a closely-watched gauge for the country's manufacturing activity ticked up for September, easing concern about a slowdown in the second-largest economy. The HSBC flash manufacturing Purchasing Managers' Index (PMI) rose to 50.5 from a final reading of 50.2 in August. The final HSBC/Markit manufacturing PMI for the month is due on Sept. 30, while the official reading from the National Bureau of Statistics and China Federation of Logistics and Purchasing will be released on October 1.
Shares of brokerages companies closed higher on hopes for solid earnings growth because of a higher stock trading volume and an imminent start of the Shanghai-Hong Kong stock connect program in October. Both Changjiang Securities and Western Securities rose to their 10% maximum to 6.77 yuan and 14.08 yuan, respectively. Everbright Securities added 4% to 9.52 yuan.
Defense stocks also ended higher amid hopes for asset injections. Jiangxi Hongdu Aviation Industry hit its 10% daily upper limit at 27.58 yuan, Hafei Aviation Industry surged 8.1% to 36.28 yuan and Zhonghang Heibao advanced 5.8% to 12.69 yuan.
Hang Seng ends 0.35% up
Hong Kong share market finished the session modest higher, following gain on the Mainland A-shares after signs of an improvement in the Chinese economy and on hopes of fresh measures to boost the Chinese economy. The Hang Seng Index closed 84.54 points, or 0.35%, up at 23921.61. Market turnover increased to HK$75.24 billion, from Tuesday's turnover of HK$71.56 billion.
Bank of China rose 1.4% to HK$3.62 and Agricultural Bank of China rose 0.3% to HK$3.54 after the two state-owned giants received the regulator's approval to issue the country's first preferred shares to reduce financial stress.
Mobile operators China Telecom Corp jumped 5.2% to HK$5.04 after BNP Paribas raised its target price. China Unicom edged up 0.3% to HK$12.38 after reports said Apple Inc.'s iPhone6 has entered the final stage for approval in mainland China.
Shares of Macau gaming players remained under pressure. Galaxy Ent (00027) dipped 1.5% to HK$48.05. Sands China (01928) declined 1.6% to HK$42.55. But Melco Crown (06883) put on 3.3% to HK$69.05.
Sensex, Nifty hit one-week closing low
Indian stock market registered small losses at close after the Supreme Court in its verdict announced today, 24 September 2014, scrapped 214 out of 218 coal blocks allocated between 1993 and 2010 it had already declared illegal due to irregularities in the allocation of the blocks. The S&P BSE Sensex lost 31 points or 0.12% to settle at 26,744.69. The CNX Nifty shed 15.15 points or 0.19% to settle at 8,002.40, its lowest closing level since 17 September 2014.
Bank stocks declined on concerns of bad loans due to their exposure to coal mines after the Supreme Court's verdict on coal block allocation. Shares of Coal India jumped. Capital goods stocks declined. IT stocks were mixed. Titan Company advanced after board's in-principle nod to spin off the precision engineering division of the company as a wholly owned subsidiary. Thermax surged after the company's joint venture with a US-based firm received an order worth about Rs 339 crore. Oracle Financial Services Software tumbled on turning ex-dividend today, 24 September 2014. CARE tumbled on turning ex-dividend today, 24 September 2014.
The Supreme Court in its final verdict has given six months' breathing time for the blocks to wind up operations. The Supreme Court said that it saw no reason to save the blocks as the allocations were arbitrary. Allottees have been asked to pay a fine of Rs. 295 per tonne from the time the coal was mined. The government is now free to auction or allot the blocks to central firms. The 4 coal blocks which are exempt from the verdict are run by the Central government with no joint venture with the private sector.
Meanwhile, Prime Minister Narendra Modi leaves for a five-day visit to the United States tomorrow, 25 September 2014, hours after the launch of the "Make in India" campaign in Delhi.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.15% to 9098.49. South Korea's KOSPI index gained 0.33% to 2035.64. Indonesia's Jakarta Composite index fell 0.27% to 5174.01. Malaysia's KLCI dropped 0.01% to 1840.08. New Zealand's NZX50 jumped 0.32% to 5258.17. Singapore's Straits Times index fell 0.16% at 3292.81.
