Headline shares of the Asia Pacific market closed mostly down on Monday,
13 October 2014, on tracking weak lead from offshore at opening bell
after major markets in the United States and around Europe all fell
heavily on Friday night, amid concern about a global economic slowdown,
particularly slowing growth in Europe, and uncertainty about U.S.
interest-rate policy. The promising trade numbers out of China failed to
cheer a market. The MSCI Asia Pacific Excluding Japan Index dropped
0.6% to 463.49, extending last week's 1.1% drop.
Investors were cutting their exposure to riskier assets on concerns about the impact of the U.S. Federal Reserve ending its bond-buying stimulus later this month, mounting risks of recession in the euro zone, China's expansion slowdown and a floundering Japanese economy.
The International Monetary Fund trimmed its global growth forecasts for this year and next on 7 October 2014, citing weakness in Japan, Latin America and Europe. The global economy will expand 3.3% this year instead of 3.4% and expand 3.8% in 2015. The IMF said recovery is "weak and uneven" in the advanced economies.
Several Federal Reserve officials, most notably, Fed Vice Chairman Stanley Fischer, said on Saturday efforts to normalize U.S. monetary policy after years of extraordinary stimulus may be hampered by the global outlook.
Investors are eyeing Europe after Germany, the region's largest economy, reported disappointing trade figures that underlined weak global demand. Germany said on Thursday its exports dropped 5.8% in August from July, the steepest decline since early 2009.
Imports fell by 1.3%. The trade data was the latest downbeat news from the Europe's economic powerhouse, which has suffered drops in industrial production, factory orders and business confidence.
The euro zone, without growth and flirting with deflation, faces the prospect of recession in its economic powerhouse, Germany. Adding to the low mood, ratings agency Standard & Poor's revised on Friday France's credit outlook to negative and cut Finland's triple-A rating to AA
At an International Monetary Fund and World Bank meeting in Washington on Saturday, IMF member countries called for bold action to bolster the global economic recovery and flagged Europe as a top concern.
The General Administration of Customs announced on Monday that China's trade surplus more than doubled to $31 billion in September 2014. Exports rose 15.3% year-on-year to $213.7 billion, while imports climbed 7% to $US182.7 billion. The surplus was lower than August's record $49.8 billion. But the rise in exports accelerated from August's 9.4%.
Among regional bourses
Aussie shares dips on global growth woes
Australian share market finished the session at a fresh eight-month low, amid worries about global economic growth. Except materials, all sectors were firmly in the red, with the industrials, financials, and consumer goods stocks being hardest hit. The mining stocks recovered from recent heavy selling on the back of stronger-than-expected trade figures from the country's largest trading partner. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.63% to 5155.50 and 5153.10, respectively.
Turnover was relatively subdued with 1.60 billion shares worth of A$3.80 billion traded today.
Shares of banks and financial companies were lower, with top four lenders being major losers on profit taking after outperforming the wider market in the previous two years.
Commonwealth Bank of Australia dropped 0.9% to A$74.13, ANZ Banking Group 0.7% to A$31.01, Westpac Banking Corp 1.1% to A$31.90. National Australia Bank sank 0.3% to A$31.82.
Shares of material sector was lone gainer, up 0.5%, as the spot price for iron ore, at the Qingdao port in China, rose 1.7% to $US80.24 a tonne. The rebound was also underpinned after China September trade data beats consensus. China's trade surplus more than doubled to $US31.0 billion in September, official data shows, with exports jumping and imports increasing more slowly. Exports from the world's second-biggest economy rose 15.3% year-on-year to $US213.7 billion, the General Administration of Customs announced on Monday, while imports climbed 7% to $US182.7 billion.
Iron ore miner Fortescue Metals Group was the best-performing stock in the ASX 200, climbing 6.1% to A$3.46. Resources giant BHP Billiton added 0.9% to A$32.60, and main rival Rio Tinto jumped 1.9% to A$58.36.
Mining services contractor WDS slumped 69% after it warned earnings for the year through June would be dented after losing out on an energy contract and problems with a coal-mine.
Shanghai Composite falls 0.36%
Mainland China market closed lower for second consecutive session, as profit taking triggered after the market hit a 20-month-high last week and renewed concerns about economic growth. But, market trimmed most of early losses after official data showed China's trade surplus more than doubled in September. The benchmark Shanghai Composite index declined 8.53 points, or 0.36%, to finish at 2366.01.
Investors concern about economic growth spurred after he World Bank cut its forecast for Chinese growth to 7.4% for 2014 and 7.2% for 2015, while the International Monetary Fund left its predictions unchanged at 7.4% and 7.1% warned of "near-term growth risks", especially in real estate.
Coal resource tax set at 2-10%: Chinese government said on Saturday that it will institute a resource tax on coal of between 2 and 10% beginning Dec. 1, the first official numbers to be issued for the long-anticipated plan. The State Council, China's Cabinet, said in September that the country would impose a new resource tax on coal and cancels a series of existing charges in a move to simplify the tax structure for struggling coal producers. The ministry also said in a separate notice that the government will abolish the resource conservation tax for crude oil and natural gas while lifting the exploration tax to 6% from 5%.
Bank of China relaxes mortgage rules: Bank of China is the first of the country's big four lenders to confirm the implementation of eased mortgage measures for homebuyers, according to a statement on Friday. The bank has been following the new measures, which were first formally introduced Sept. 30 in a joint announcement by the People's Bank of China, the central bank, and the China Banking Regulatory Commission, since Oct. 1. The mortgage rule easing has expanded the pool of eligible homebuyers applying for mortgage loans and increased the amount they can borrow by categorizing second homebuyers, who have fully repaid existing loans as first-time homebuyers. According to the announcement,
mortgages on a second home will be treated as a first mortgage if the buyer has no other outstanding mortgages. As a result, people who wish to buy a second home will enjoy the same 30% down payment ratio required of first-time homebuyers, instead of the original 60 to 70% down payment ratio. They will also be allowed interest rates as low as 70% of the 6.55% benchmark mortgage rate, instead of paying a 10% premium on top of the benchmark rate as required previously.
Hang Seng bounces 0.24% on bottom fishing
Hong Kong equity market closed higher after recouping lost ground in late afternoon trade, as investors chased for bottom fishing on recently battered stocks thanks to promising trade numbers out of China. The benchmark Hang Seng Index rose 54.84 points, or 0.24% to close at 23143.38, after falling to intraday low of 22871.27.
China Mobile (00941), HKEx (00388) and AIA (01299) rose more than 1% to HK$93.6, HK$172.1 and HK$41.9 respectively, on funds' buying.
Agile Property (03383) plunged 17% to HK$3.95 on a double whammy of rights issue cancellation and chairman Chen Zhou Lin's physical restriction by the authorities. The company resumed trading today after being halted Oct. 3. The developer said billionaire founder and Chairman Chen Zhuolin was under the watch of prosecutors. The company last week called off a HK$2.8 billion ($361 million) rights offer.
China Taiping Insurance Holdings Co. slumped 9.6% to HK$16.22 after saying it plans to raise as much as $828 million in a rights offer.
Sensex stages strong intraday rebound
Indian stock market closed higher as intraday recovery in European stocks and US index futures aided strong intraday rebound on the domestic bourses during the second half of the trading session. Banking, metal and mining stocks led the intraday rebound. As per provisional closing, the S&P BSE Sensex was up 73.42 points or 0.28% to 26,370.80. The CNX Nifty was up 24.30 points or 0.31% at 7,884.25, as per provisional figures.
Metal and mining stocks edged higher after better-than-expected Chinese September trade data. Reliance Industries declined ahead of its Q2 September 2014 results. Mahindra dropped after the company said it would observe no production days for four days during the balance period of October 2014 at its tractor plants located at Rudrapur and Jaipur to align production with sales requirements. ACC declined after the company said that clinker production at Chaibasa and Bargarh plants has stopped. IndusInd Bank gained after strong Q2 earnings.
Industrial production growth remained subdued at 0.4% in August 2014, compared with a revised 0.4% growth in July 2014, data released by the government after trading hours on Friday, 10 October 2014, showed.
Elsewhere in the Asia Pacific region-- Indonesia's Jakarta Composite index shed 1% to 4913.05. Singapore's Straits Times index declined 0.67% at 3202.15. Malaysia's KLCI slipped 2.37% to 1797.20. New Zealand's NZX50 shed 1.05% to 5170.05. South Korea KOSPI dipped 0.71% to 1927.21. Taiwan's Taiex lost 2.84% to 8711.39. Stock markets in Japan were closed for a holiday.
Investors were cutting their exposure to riskier assets on concerns about the impact of the U.S. Federal Reserve ending its bond-buying stimulus later this month, mounting risks of recession in the euro zone, China's expansion slowdown and a floundering Japanese economy.
The International Monetary Fund trimmed its global growth forecasts for this year and next on 7 October 2014, citing weakness in Japan, Latin America and Europe. The global economy will expand 3.3% this year instead of 3.4% and expand 3.8% in 2015. The IMF said recovery is "weak and uneven" in the advanced economies.
Several Federal Reserve officials, most notably, Fed Vice Chairman Stanley Fischer, said on Saturday efforts to normalize U.S. monetary policy after years of extraordinary stimulus may be hampered by the global outlook.
Investors are eyeing Europe after Germany, the region's largest economy, reported disappointing trade figures that underlined weak global demand. Germany said on Thursday its exports dropped 5.8% in August from July, the steepest decline since early 2009.
Imports fell by 1.3%. The trade data was the latest downbeat news from the Europe's economic powerhouse, which has suffered drops in industrial production, factory orders and business confidence.
The euro zone, without growth and flirting with deflation, faces the prospect of recession in its economic powerhouse, Germany. Adding to the low mood, ratings agency Standard & Poor's revised on Friday France's credit outlook to negative and cut Finland's triple-A rating to AA
At an International Monetary Fund and World Bank meeting in Washington on Saturday, IMF member countries called for bold action to bolster the global economic recovery and flagged Europe as a top concern.
The General Administration of Customs announced on Monday that China's trade surplus more than doubled to $31 billion in September 2014. Exports rose 15.3% year-on-year to $213.7 billion, while imports climbed 7% to $US182.7 billion. The surplus was lower than August's record $49.8 billion. But the rise in exports accelerated from August's 9.4%.
Among regional bourses
Aussie shares dips on global growth woes
Australian share market finished the session at a fresh eight-month low, amid worries about global economic growth. Except materials, all sectors were firmly in the red, with the industrials, financials, and consumer goods stocks being hardest hit. The mining stocks recovered from recent heavy selling on the back of stronger-than-expected trade figures from the country's largest trading partner. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.63% to 5155.50 and 5153.10, respectively.
Turnover was relatively subdued with 1.60 billion shares worth of A$3.80 billion traded today.
Shares of banks and financial companies were lower, with top four lenders being major losers on profit taking after outperforming the wider market in the previous two years.
Commonwealth Bank of Australia dropped 0.9% to A$74.13, ANZ Banking Group 0.7% to A$31.01, Westpac Banking Corp 1.1% to A$31.90. National Australia Bank sank 0.3% to A$31.82.
Shares of material sector was lone gainer, up 0.5%, as the spot price for iron ore, at the Qingdao port in China, rose 1.7% to $US80.24 a tonne. The rebound was also underpinned after China September trade data beats consensus. China's trade surplus more than doubled to $US31.0 billion in September, official data shows, with exports jumping and imports increasing more slowly. Exports from the world's second-biggest economy rose 15.3% year-on-year to $US213.7 billion, the General Administration of Customs announced on Monday, while imports climbed 7% to $US182.7 billion.
Iron ore miner Fortescue Metals Group was the best-performing stock in the ASX 200, climbing 6.1% to A$3.46. Resources giant BHP Billiton added 0.9% to A$32.60, and main rival Rio Tinto jumped 1.9% to A$58.36.
Mining services contractor WDS slumped 69% after it warned earnings for the year through June would be dented after losing out on an energy contract and problems with a coal-mine.
Shanghai Composite falls 0.36%
Mainland China market closed lower for second consecutive session, as profit taking triggered after the market hit a 20-month-high last week and renewed concerns about economic growth. But, market trimmed most of early losses after official data showed China's trade surplus more than doubled in September. The benchmark Shanghai Composite index declined 8.53 points, or 0.36%, to finish at 2366.01.
Investors concern about economic growth spurred after he World Bank cut its forecast for Chinese growth to 7.4% for 2014 and 7.2% for 2015, while the International Monetary Fund left its predictions unchanged at 7.4% and 7.1% warned of "near-term growth risks", especially in real estate.
Coal resource tax set at 2-10%: Chinese government said on Saturday that it will institute a resource tax on coal of between 2 and 10% beginning Dec. 1, the first official numbers to be issued for the long-anticipated plan. The State Council, China's Cabinet, said in September that the country would impose a new resource tax on coal and cancels a series of existing charges in a move to simplify the tax structure for struggling coal producers. The ministry also said in a separate notice that the government will abolish the resource conservation tax for crude oil and natural gas while lifting the exploration tax to 6% from 5%.
Bank of China relaxes mortgage rules: Bank of China is the first of the country's big four lenders to confirm the implementation of eased mortgage measures for homebuyers, according to a statement on Friday. The bank has been following the new measures, which were first formally introduced Sept. 30 in a joint announcement by the People's Bank of China, the central bank, and the China Banking Regulatory Commission, since Oct. 1. The mortgage rule easing has expanded the pool of eligible homebuyers applying for mortgage loans and increased the amount they can borrow by categorizing second homebuyers, who have fully repaid existing loans as first-time homebuyers. According to the announcement,
mortgages on a second home will be treated as a first mortgage if the buyer has no other outstanding mortgages. As a result, people who wish to buy a second home will enjoy the same 30% down payment ratio required of first-time homebuyers, instead of the original 60 to 70% down payment ratio. They will also be allowed interest rates as low as 70% of the 6.55% benchmark mortgage rate, instead of paying a 10% premium on top of the benchmark rate as required previously.
Hang Seng bounces 0.24% on bottom fishing
Hong Kong equity market closed higher after recouping lost ground in late afternoon trade, as investors chased for bottom fishing on recently battered stocks thanks to promising trade numbers out of China. The benchmark Hang Seng Index rose 54.84 points, or 0.24% to close at 23143.38, after falling to intraday low of 22871.27.
China Mobile (00941), HKEx (00388) and AIA (01299) rose more than 1% to HK$93.6, HK$172.1 and HK$41.9 respectively, on funds' buying.
Agile Property (03383) plunged 17% to HK$3.95 on a double whammy of rights issue cancellation and chairman Chen Zhou Lin's physical restriction by the authorities. The company resumed trading today after being halted Oct. 3. The developer said billionaire founder and Chairman Chen Zhuolin was under the watch of prosecutors. The company last week called off a HK$2.8 billion ($361 million) rights offer.
China Taiping Insurance Holdings Co. slumped 9.6% to HK$16.22 after saying it plans to raise as much as $828 million in a rights offer.
Sensex stages strong intraday rebound
Indian stock market closed higher as intraday recovery in European stocks and US index futures aided strong intraday rebound on the domestic bourses during the second half of the trading session. Banking, metal and mining stocks led the intraday rebound. As per provisional closing, the S&P BSE Sensex was up 73.42 points or 0.28% to 26,370.80. The CNX Nifty was up 24.30 points or 0.31% at 7,884.25, as per provisional figures.
Metal and mining stocks edged higher after better-than-expected Chinese September trade data. Reliance Industries declined ahead of its Q2 September 2014 results. Mahindra dropped after the company said it would observe no production days for four days during the balance period of October 2014 at its tractor plants located at Rudrapur and Jaipur to align production with sales requirements. ACC declined after the company said that clinker production at Chaibasa and Bargarh plants has stopped. IndusInd Bank gained after strong Q2 earnings.
Industrial production growth remained subdued at 0.4% in August 2014, compared with a revised 0.4% growth in July 2014, data released by the government after trading hours on Friday, 10 October 2014, showed.
Elsewhere in the Asia Pacific region-- Indonesia's Jakarta Composite index shed 1% to 4913.05. Singapore's Straits Times index declined 0.67% at 3202.15. Malaysia's KLCI slipped 2.37% to 1797.20. New Zealand's NZX50 shed 1.05% to 5170.05. South Korea KOSPI dipped 0.71% to 1927.21. Taiwan's Taiex lost 2.84% to 8711.39. Stock markets in Japan were closed for a holiday.
