Headline shares of the Asia Pacific market mixed on Tuesday, 21 October
2014, as better-than-expected Chinese economic data offset by lingering
concerns over the global economy.
China statistics bureau said on Tuesday that Gross domestic product rose 7.3% in the third quarter from a year earlier that was slightly higher than consensus forecast. Industrial production rose 8% in September from a year earlier, compared with August's 6.9%. Retail sales increased 11.6% from a year earlier, compared with the August's 11.9%. Fixed-asset investment excluding rural households increased 16.1% in the first nine months from a year earlier.
While the Chinese growth data was slightly better than expected, there are still worries about the slowdown in the world's second-largest economy as it grew below the 7.5% growth target set for this year.
Among Asian bourses
Aussie market ends higher
Australian market closed higher for six straight sessions, on the back of last on the back of last minutes rally in retailer and mining counters bolstered by better than expected Chinese economic data. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each grew 0.1% to 5325 and 5321.50, respectively.
Shares of material sector closed higher, with Rio Tinto gaining 0.4% to A$59.97, while resources giant BHP Billiton fell 0.3% to A$33.75. Iron ore miner Fortescue Metals Group closed 2.6% up at A$3.55.
Gold miner Newcrest dropped 0.3% to A$9.78 after it re-affirmed full year guidance but reported a 12% fall in production in the September quarter.
Bread and spreads maker Goodman Fielder rose 1.6% to A$0.63 after the federal government approved a foreign takeover of the company.
RBA's October meeting minutes were released on Tuesday, with market commentators paying particular attention to any adjustments in language concerning both international and domestic economic indicators. October's decision to keep the cash rate unchanged at 2.5% mentioned international factors such as a weak Chinese property market and a further decline in important Australian commodity prices as "a challenge in the near term".
On the domestic front the decision said a significant decline in resources sector investment spending and volatile labour market data were areas of concern. The RBA has made no secret of the fact it feels the Australian dollar is overvalued and would like it lower in order to make the country's exports more competitive and generate more tourism, but this looks unlikely in the near future. A combination of weaker than expected US economic data, continued weak European data and a significant amount of Asian interest in the Australian property market continues to keep the Aussie buoyant.
Nikkei falls 2.03% on profit booking
Japanese share market closed lower, wiping out half of yesterday's gain, as investors locked in profits after the previous day's rise of almost 4%. The Nikkei 225 index at the Tokyo Stock Exchange lost 2.03%, or 306.95 points, to finish at 14804.28. The Topix index of all first-section issues fell 1.55%, or 18.98 points, to 1205.36.
Tokyo shares traded weaker after opening the session with back footing, as investors preferred to book profit following yesterday's 4% rise buoyed by an optimistic report about Japanese pension investment in domestic stocks.
Japan's $1.2 trillion Government Pension Investment Fund will increase its allocation target for local shares to about 25% from 12%, the Nikkei newspaper reported without attribution. GPIF will also boost its holdings of foreign bonds and stocks to about a combined 30% from 23%, while reducing domestic debt to the 40% level from 60%, the Nikkei said Oct. 18.
Currency-sensitive shares declined the most in Tokyo, with auto makers led losses. Toyota lost 1.6% and Honda Motor slipped 1.5%. The group was also been affected by strong selling in parts maker Takata Corp., which plunged 23% on news that owners of some 4.7 million vehicles need to replace defective air bags made by the firm. The warning issued by the U.S. National Highway Traffic Safety Administration followed recall notices by car makers Toyota, Honda, General Motors, and others. The defective air bags could catch fire or explode in a crash, NHTSA documents stated.
Shares in Fujifilm bucked the downward trend after the company said it was increasing production of an anti-influenza drug that is being used to treat Ebola patients. Fujifilm shares end the day 0.2% higher at 3,398.5 yen.
Shanghai Composite falls 0.7% on profit booking
Mainland China share market closed down, as profit taking triggered after better-than-expected economic data watered speculation over government to enact large-scale stimulus. Investors were also booking profit ahead of subscriptions for new initial public offerings this week. The Shanghai Composite Index fell 0.7% to 2,339.66 at the close, the lowest since Sept. 23.
Nine companies will market initial public offerings from Oct. 23. The sales may lock up more than 700 billion yuan of bids, the Securities Daily reported today. The companies plan to raise 3.7 billion yuan by selling 443 million shares, according to the report.
Nine out of ten SSE sectors ended lower, with industrial issue declined the most, falling 1.32%, followed by healthcare down 1.23%, materials down 1.23%, consumer discretionary down 1.16%, energy 1%, and financials down 0.7%.
Hang Seng ups 0.08%
Hong Kong equity market closed marginally higher in volatile trade, on the back of better than expected Chinese economic data. The Hang Seng Index gained 0.08%, or 18.32 points, to 23088.58.
China Mobile (00941) dipped 1.78% to HK$91.2 after it reported decline in third quarter earnings, while HSBC (00005) nudged up 0.26% to HK$77.75.
Sino Land (00083) shot up 2.25% to HK$12.7, making it the largest blue-chip gainer. Tingyi (00322) slid 2.41% to HK$19.4, making it the top blue-chip loser.
Chun Wo (00711) surged 15.84% to HK$1.17 on China New Way Investment's proposed cash offer for the company.
Gome (00493) gained 1.61% to HK$1.26 after it expects 9-month profit to rise over 70%.
Hong Kong's overall consumer prices rose 6.6% in September over the same month a year earlier, larger than the corresponding increase of 3.9% in August, the Census and Statistics Department said on Tuesday.
Sensex gains for third straight day
Indian benchmark indices continued their winning streak for the third straight day with metal, power generation and banking stocks leading the gains. A rally in European stocks aided the upmove on the domestic bourses. The market sentiment was upbeat after provisional data released by the stock exchanges after trading hours yesterday, 20 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1040.08 crore on that day. The barometer index, the S&P BSE Sensex advanced 145.80 points or 0.55% to settle at 26,575.65. The market breadth indicating the overall health of the market was positive.
Capital goods stocks edged higher. FMCG stocks advanced, IT stocks gained. Realty stocks edged higher. Metal and power generation stocks rose after the Narendra Modi government yesterday, 20 October 2014, announced that it will auction 74 coal-mining licenses to private companies in the next three to four months after the Supreme Court last month canceled 214 coal licenses issued to private and public companies since 1993. Power Finance Corporation and Rural Electrification Corporation edged higher as coal block auctions will reduce uncertainty regarding power generation companies that depend on the dry fuel. Coal India declined. Bank stocks rose for the second day in a row as a sharp cut in diesel price on Saturday, 18 October 2014, is expected to bring down freight rates which in turn could reduce consumer price inflation. HDFC Bank edged higher amid volatility after strong Q2 numbers. Punjab National Bank dropped amid volatility after Q2 earnings.
Elsewhere in the Asia Pacific region-- South Korea KOSPI fell 0.77% to 1915.28. Taiwan's Taiex index dropped 0.1% to 8654.64. Indonesia's Jakarta Composite index slid 0.22% to 5029.34. Malaysia's KLCI slipped 0.38% to 1796.22. New Zealand's NZX50 grew 0.68% to 5233.12. Singapore's Straits Times index added 0.68% at 3202.74.
China statistics bureau said on Tuesday that Gross domestic product rose 7.3% in the third quarter from a year earlier that was slightly higher than consensus forecast. Industrial production rose 8% in September from a year earlier, compared with August's 6.9%. Retail sales increased 11.6% from a year earlier, compared with the August's 11.9%. Fixed-asset investment excluding rural households increased 16.1% in the first nine months from a year earlier.
While the Chinese growth data was slightly better than expected, there are still worries about the slowdown in the world's second-largest economy as it grew below the 7.5% growth target set for this year.
Among Asian bourses
Aussie market ends higher
Australian market closed higher for six straight sessions, on the back of last on the back of last minutes rally in retailer and mining counters bolstered by better than expected Chinese economic data. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each grew 0.1% to 5325 and 5321.50, respectively.
Shares of material sector closed higher, with Rio Tinto gaining 0.4% to A$59.97, while resources giant BHP Billiton fell 0.3% to A$33.75. Iron ore miner Fortescue Metals Group closed 2.6% up at A$3.55.
Gold miner Newcrest dropped 0.3% to A$9.78 after it re-affirmed full year guidance but reported a 12% fall in production in the September quarter.
Bread and spreads maker Goodman Fielder rose 1.6% to A$0.63 after the federal government approved a foreign takeover of the company.
RBA's October meeting minutes were released on Tuesday, with market commentators paying particular attention to any adjustments in language concerning both international and domestic economic indicators. October's decision to keep the cash rate unchanged at 2.5% mentioned international factors such as a weak Chinese property market and a further decline in important Australian commodity prices as "a challenge in the near term".
On the domestic front the decision said a significant decline in resources sector investment spending and volatile labour market data were areas of concern. The RBA has made no secret of the fact it feels the Australian dollar is overvalued and would like it lower in order to make the country's exports more competitive and generate more tourism, but this looks unlikely in the near future. A combination of weaker than expected US economic data, continued weak European data and a significant amount of Asian interest in the Australian property market continues to keep the Aussie buoyant.
Nikkei falls 2.03% on profit booking
Japanese share market closed lower, wiping out half of yesterday's gain, as investors locked in profits after the previous day's rise of almost 4%. The Nikkei 225 index at the Tokyo Stock Exchange lost 2.03%, or 306.95 points, to finish at 14804.28. The Topix index of all first-section issues fell 1.55%, or 18.98 points, to 1205.36.
Tokyo shares traded weaker after opening the session with back footing, as investors preferred to book profit following yesterday's 4% rise buoyed by an optimistic report about Japanese pension investment in domestic stocks.
Japan's $1.2 trillion Government Pension Investment Fund will increase its allocation target for local shares to about 25% from 12%, the Nikkei newspaper reported without attribution. GPIF will also boost its holdings of foreign bonds and stocks to about a combined 30% from 23%, while reducing domestic debt to the 40% level from 60%, the Nikkei said Oct. 18.
Currency-sensitive shares declined the most in Tokyo, with auto makers led losses. Toyota lost 1.6% and Honda Motor slipped 1.5%. The group was also been affected by strong selling in parts maker Takata Corp., which plunged 23% on news that owners of some 4.7 million vehicles need to replace defective air bags made by the firm. The warning issued by the U.S. National Highway Traffic Safety Administration followed recall notices by car makers Toyota, Honda, General Motors, and others. The defective air bags could catch fire or explode in a crash, NHTSA documents stated.
Shares in Fujifilm bucked the downward trend after the company said it was increasing production of an anti-influenza drug that is being used to treat Ebola patients. Fujifilm shares end the day 0.2% higher at 3,398.5 yen.
Shanghai Composite falls 0.7% on profit booking
Mainland China share market closed down, as profit taking triggered after better-than-expected economic data watered speculation over government to enact large-scale stimulus. Investors were also booking profit ahead of subscriptions for new initial public offerings this week. The Shanghai Composite Index fell 0.7% to 2,339.66 at the close, the lowest since Sept. 23.
Nine companies will market initial public offerings from Oct. 23. The sales may lock up more than 700 billion yuan of bids, the Securities Daily reported today. The companies plan to raise 3.7 billion yuan by selling 443 million shares, according to the report.
Nine out of ten SSE sectors ended lower, with industrial issue declined the most, falling 1.32%, followed by healthcare down 1.23%, materials down 1.23%, consumer discretionary down 1.16%, energy 1%, and financials down 0.7%.
Hang Seng ups 0.08%
Hong Kong equity market closed marginally higher in volatile trade, on the back of better than expected Chinese economic data. The Hang Seng Index gained 0.08%, or 18.32 points, to 23088.58.
China Mobile (00941) dipped 1.78% to HK$91.2 after it reported decline in third quarter earnings, while HSBC (00005) nudged up 0.26% to HK$77.75.
Sino Land (00083) shot up 2.25% to HK$12.7, making it the largest blue-chip gainer. Tingyi (00322) slid 2.41% to HK$19.4, making it the top blue-chip loser.
Chun Wo (00711) surged 15.84% to HK$1.17 on China New Way Investment's proposed cash offer for the company.
Gome (00493) gained 1.61% to HK$1.26 after it expects 9-month profit to rise over 70%.
Hong Kong's overall consumer prices rose 6.6% in September over the same month a year earlier, larger than the corresponding increase of 3.9% in August, the Census and Statistics Department said on Tuesday.
Sensex gains for third straight day
Indian benchmark indices continued their winning streak for the third straight day with metal, power generation and banking stocks leading the gains. A rally in European stocks aided the upmove on the domestic bourses. The market sentiment was upbeat after provisional data released by the stock exchanges after trading hours yesterday, 20 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1040.08 crore on that day. The barometer index, the S&P BSE Sensex advanced 145.80 points or 0.55% to settle at 26,575.65. The market breadth indicating the overall health of the market was positive.
Capital goods stocks edged higher. FMCG stocks advanced, IT stocks gained. Realty stocks edged higher. Metal and power generation stocks rose after the Narendra Modi government yesterday, 20 October 2014, announced that it will auction 74 coal-mining licenses to private companies in the next three to four months after the Supreme Court last month canceled 214 coal licenses issued to private and public companies since 1993. Power Finance Corporation and Rural Electrification Corporation edged higher as coal block auctions will reduce uncertainty regarding power generation companies that depend on the dry fuel. Coal India declined. Bank stocks rose for the second day in a row as a sharp cut in diesel price on Saturday, 18 October 2014, is expected to bring down freight rates which in turn could reduce consumer price inflation. HDFC Bank edged higher amid volatility after strong Q2 numbers. Punjab National Bank dropped amid volatility after Q2 earnings.
Elsewhere in the Asia Pacific region-- South Korea KOSPI fell 0.77% to 1915.28. Taiwan's Taiex index dropped 0.1% to 8654.64. Indonesia's Jakarta Composite index slid 0.22% to 5029.34. Malaysia's KLCI slipped 0.38% to 1796.22. New Zealand's NZX50 grew 0.68% to 5233.12. Singapore's Straits Times index added 0.68% at 3202.74.
