Headline shares of the Asia Pacific market closed mostly higher in
volatile trade on Tuesday, 13 January 2015, as better-than-forecast
Chinese trade data offset continued losses on Wall Street and a further
slide in the price of oil. The MSCI Asia Pacific Index climbed 0.2% to
138.04.
China's exports jumped 9.7% from a year earlier to $227.5 billion in December, up from the previous month's unexpectedly low 4.7% growth, according to data released by General Administration of Customs on Tuesday. Imports declined by 2.4% to $177.9 billion, better than November's surprise 6.7% contraction. As a result, China's trade surplus narrowed to $49.61 billion in December from $54.47 billion in November. For the full year 2014, the country reported a trade surplus of $382.46 billion, compared with a surplus of $259.75 billion in 2013. Exports rose 6.1% in 2014, down from an increase of 7.9% in 2013. Imports climbed 0.4%, down from growth of 7.3% in 2013.
The export figure exceeded the market expectation of around 6%, while the fall in imports was less severe than their prediction of a 6.2% decline. The figures are a rare bright ray out of China, where the economy has slowed on the back of weakening exports and imports as well as falling investment, manufacturing and consumer spending.
Shares in regional market fell in early trading on tracking a negative lead from the Wall Street overnight where the Dow Jones Industrial Average ended down 0.5%, while the S&P 500 shed 0.8%. The weakness on Wall Street came amid another sharp drop by the price of crude oil, which has fallen to its lowest levels in almost six years. Crude for February delivery tumbled $2.29 to $46.07 a barrel after plunging $4.33 or 8.2% to $48.36 a barrel last week.
Among Asian bourses
Australia stocks fall on weak commodity prices
Australian share market closed down for second consecutive session, as losses in the energy, materials & resources, financials, and realty sectors were more than offset by gains elsewhere. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.3% to 5404.70 and 5382.10, respectively.
Energy stocks continued downward move, pressured by weak crude oil price. Australia's biggest dedicated oil producer Woodside Petroleum declined 1.7% to A$35.72. Santos lost 1.1% to A$7.21. Origin Energy slipped 2.7% to A$10.83.
Shares of iron-ore mining companies were also down, on tracking soft commodity prices. Resources giant BHP Billiton was down 1.8% to A$27.97, while main rival Rio Tinto slipped 1.8% to A$57.46. Australia's third largest iron ore miner Fortescue Metals Group tanked 5.2% to A$2.55.
Gold-miners were the brightest part of the market as the precious metal's spot price lifted to $1236 an ounce. The gold price has recovered almost 8% off a four-and-a-half-year low in November as increasingly cautious investors flock to "safe-haven" assets such as gold and bonds. Shares of Newcrest Mining advanced 3.8% to A$12.95 and Evolution Mining added 9% to A$0.91.
Nikkei closes 110.02 points down
Japanese share market closed down, as risk aversion selloff triggered on tracking drop in Wall Street in previous two sessions and as yen appreciation against the dollar. The Nikkei Stock Average declined 110.02 points, or 0.64%, to 17087.71. Markets were closed on Monday for the annual Coming of Age Day holiday, setting traders up for two days' worth of reactions to investor flows.
Shares of energy companies declined the most in Tokyo after oil prices slumped to a 5 1/2-year low. Inpex Corp dropped 2.6% to 1,203.5 yen. Oil refiner JX Holdings Inc. slid 1.6% to 437.8 yen after saying it expects to miss forecasts because of declining oil prices.
Exporters were also down, after the yen strengthened more than 1% in the previous two trading days. Toyota Motor Corp sank 1.2% 7,519 yen. Nikon Corp decreased 0.8% to 1,491 yen.
Airlines and marine shippers benefited from cheaper prospective fuel costs, with Japan Airlines adding 0.7% and Kawasaki Kisen gaining 1.8%.
Earnings results from prominent retailers were also in the spotlight. Large-scale mall operator Aeon tumbled 5.6% to 1,143.5 yen after it reported a nine-month operating profit of Y49.37 billion, down from Y94.84 billion a year ago and undershooting many forecasts. The firm left its full year guidance intact at Y200 billion to Y210 billion.
Convenience store operator Seven & i Holdings also dropped 3.1% after the firm announced first quarter to third quarter results showing a flat operating profit of Y249.5 billion, about Y10 billion below guidance. Fellow retailer Lawson dropped 2.9% after its nine-month results fell about Y900 million below guidance.
Japan's November current account surplus was 433 billion yen, according to data released by the Ministry of Finance on Tuesday. That compared with a 596.9 billion yen deficit a year ago.
China market rises for the first time in four days
Mainland China share market closed higher for the first time in four consecutive sessions, as investors chased for value buying after the nation's trade data bolstered confidence that the stock recent rally still has some fundamental support. The Shanghai Composite advanced 0.2% to 3235.30.
Software firms were among the biggest gainers on hopes China will boost the use of domestically developed products. Yonyou Software soared by its 10% daily limit to 31.96 yuan while China National Software & Service also surged 10% to 43.76 yuan.
Financial stocks were mostly lower. Citic Securities tumbled 4.06% to 32.17 yuan and China Life Insurance fell 2.10% to 34.09 yuan. But banking giant ICBC was unchanged at 4.82 yuan
Guangzhou Baiyunshan Pharmaceutical Holdings Co. surged 10% upper limit to 29.82 yuan after announcing plans to raise as much as 10 billion yuan ($1.6 billion) by selling shares.
Xinjiang Urban Construction Group Co added 1.9% to 11.37 yuan and Xinjiang Beixin Road & Bridge Construction Co gained 1.5% to 12.33 yuan on reports that China will introduce a so-called New Silk Road plan soon that will offer preferential policies to Xinjiang province.
Hang Seng ends 0.79% higher
Hong Kong share market closed modestly higher in volatile trade, as better-than-forecast Chinese trade data offset continued losses on Wall Street and a further slide in the price of oil. The benchmark index opened 118 points lower but gradually recovered its loss ground after China said its exports grew nearly 10% last month. The Hang Seng Index ended 189.51 points, or 0.79%, up at 24215.97, off an intra-day high of 24254.11 and low of 23908.23. Turnover reduced to HK$84.85 billion from HK$90 billion on Monday.
Shipping shares and airline companies were boosted by another fall in crude prices overnight in New York, with Orient Overseas (International) jumping 3% to HK$50.50, China Merchants Holdings (International) Co. climbing 3.7% to HK$26.90, and China Eastern Airlines Corp rising 2% to HK$4.01. However, China's biggest offshore oil producer Cnooc fell 1.7% to HK$10.46. State-owned energy giant PetroChina Co. once dropped 1.2%, but erased early losses and inched 0.2% higher to HK$8.79.
Hong Kong cosmetics retailer Sa Sa International Holdings fell 5.7% to HK$4.98 after the firm announced a fall in its quarterly same-store sales.
China Merchants gained 3.7% to HK$26.9 and SHKP added 3.4% to HK$123.6 on the back of better-than-expected trade data. CR Land (01109) dipped 4% to HK$21.2, as it went ex-dividend today.
Sensex snaps 3-day winning streak
Weakness during the latter part of the trading session pulled Indian benchmark indices lower. The decline in percentage terms in the barometer index, the S&P BSE Sensex, was much higher than the decline in the 50-unit CNX Nifty. The market breadth indicating the overall health of the market turned negative from positive in late trade. The Sensex declined 159.64 points or 0.58% to settle at 27,425.73. The CNX Nifty shed 23.60 points or 0.28% to settle at 8,299.40. Global crude oil prices slumped. India stands to benefit from a rout in global crude oil prices given that the nation meets 80% of its crude oil requirements from imports.
Macroeconomic data released after trading hours yesterday, 12 January 2015, showed a lower-than-expected acceleration in inflation based on the consumer price indices last month. Finance Minister Arun Jaitely yesterday, 12 January 2015, said that the government has taken major steps to improve the investment climate in the last several months and it will continue to do so.
Bank stocks dropped. IndusInd Bank dropped in volatile trade as the bank's gross non-performing assets (NPAs) rose on absolute basis in Q3 December 2014. Realty stocks edged lower. Shares of oil exploration & production (E&P) firms declined along with fall in crude oil prices. Shares of paint makers gained on lower crude oil prices.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.58% to 9231.80. South Korea KOSPI was down 0.2% to 1917.14. New Zealand's NZX50 rose 0.5% at 5636.61. Singapore's Straits Times index fell 0.1% at 3341.07. Indonesia's Jakarta Composite index rose 0.51% to 5214.36. Malaysia's KLCI rose 0.8% to 1748.90.
China's exports jumped 9.7% from a year earlier to $227.5 billion in December, up from the previous month's unexpectedly low 4.7% growth, according to data released by General Administration of Customs on Tuesday. Imports declined by 2.4% to $177.9 billion, better than November's surprise 6.7% contraction. As a result, China's trade surplus narrowed to $49.61 billion in December from $54.47 billion in November. For the full year 2014, the country reported a trade surplus of $382.46 billion, compared with a surplus of $259.75 billion in 2013. Exports rose 6.1% in 2014, down from an increase of 7.9% in 2013. Imports climbed 0.4%, down from growth of 7.3% in 2013.
The export figure exceeded the market expectation of around 6%, while the fall in imports was less severe than their prediction of a 6.2% decline. The figures are a rare bright ray out of China, where the economy has slowed on the back of weakening exports and imports as well as falling investment, manufacturing and consumer spending.
Shares in regional market fell in early trading on tracking a negative lead from the Wall Street overnight where the Dow Jones Industrial Average ended down 0.5%, while the S&P 500 shed 0.8%. The weakness on Wall Street came amid another sharp drop by the price of crude oil, which has fallen to its lowest levels in almost six years. Crude for February delivery tumbled $2.29 to $46.07 a barrel after plunging $4.33 or 8.2% to $48.36 a barrel last week.
Among Asian bourses
Australia stocks fall on weak commodity prices
Australian share market closed down for second consecutive session, as losses in the energy, materials & resources, financials, and realty sectors were more than offset by gains elsewhere. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.3% to 5404.70 and 5382.10, respectively.
Energy stocks continued downward move, pressured by weak crude oil price. Australia's biggest dedicated oil producer Woodside Petroleum declined 1.7% to A$35.72. Santos lost 1.1% to A$7.21. Origin Energy slipped 2.7% to A$10.83.
Shares of iron-ore mining companies were also down, on tracking soft commodity prices. Resources giant BHP Billiton was down 1.8% to A$27.97, while main rival Rio Tinto slipped 1.8% to A$57.46. Australia's third largest iron ore miner Fortescue Metals Group tanked 5.2% to A$2.55.
Gold-miners were the brightest part of the market as the precious metal's spot price lifted to $1236 an ounce. The gold price has recovered almost 8% off a four-and-a-half-year low in November as increasingly cautious investors flock to "safe-haven" assets such as gold and bonds. Shares of Newcrest Mining advanced 3.8% to A$12.95 and Evolution Mining added 9% to A$0.91.
Nikkei closes 110.02 points down
Japanese share market closed down, as risk aversion selloff triggered on tracking drop in Wall Street in previous two sessions and as yen appreciation against the dollar. The Nikkei Stock Average declined 110.02 points, or 0.64%, to 17087.71. Markets were closed on Monday for the annual Coming of Age Day holiday, setting traders up for two days' worth of reactions to investor flows.
Shares of energy companies declined the most in Tokyo after oil prices slumped to a 5 1/2-year low. Inpex Corp dropped 2.6% to 1,203.5 yen. Oil refiner JX Holdings Inc. slid 1.6% to 437.8 yen after saying it expects to miss forecasts because of declining oil prices.
Exporters were also down, after the yen strengthened more than 1% in the previous two trading days. Toyota Motor Corp sank 1.2% 7,519 yen. Nikon Corp decreased 0.8% to 1,491 yen.
Airlines and marine shippers benefited from cheaper prospective fuel costs, with Japan Airlines adding 0.7% and Kawasaki Kisen gaining 1.8%.
Earnings results from prominent retailers were also in the spotlight. Large-scale mall operator Aeon tumbled 5.6% to 1,143.5 yen after it reported a nine-month operating profit of Y49.37 billion, down from Y94.84 billion a year ago and undershooting many forecasts. The firm left its full year guidance intact at Y200 billion to Y210 billion.
Convenience store operator Seven & i Holdings also dropped 3.1% after the firm announced first quarter to third quarter results showing a flat operating profit of Y249.5 billion, about Y10 billion below guidance. Fellow retailer Lawson dropped 2.9% after its nine-month results fell about Y900 million below guidance.
Japan's November current account surplus was 433 billion yen, according to data released by the Ministry of Finance on Tuesday. That compared with a 596.9 billion yen deficit a year ago.
China market rises for the first time in four days
Mainland China share market closed higher for the first time in four consecutive sessions, as investors chased for value buying after the nation's trade data bolstered confidence that the stock recent rally still has some fundamental support. The Shanghai Composite advanced 0.2% to 3235.30.
Software firms were among the biggest gainers on hopes China will boost the use of domestically developed products. Yonyou Software soared by its 10% daily limit to 31.96 yuan while China National Software & Service also surged 10% to 43.76 yuan.
Financial stocks were mostly lower. Citic Securities tumbled 4.06% to 32.17 yuan and China Life Insurance fell 2.10% to 34.09 yuan. But banking giant ICBC was unchanged at 4.82 yuan
Guangzhou Baiyunshan Pharmaceutical Holdings Co. surged 10% upper limit to 29.82 yuan after announcing plans to raise as much as 10 billion yuan ($1.6 billion) by selling shares.
Xinjiang Urban Construction Group Co added 1.9% to 11.37 yuan and Xinjiang Beixin Road & Bridge Construction Co gained 1.5% to 12.33 yuan on reports that China will introduce a so-called New Silk Road plan soon that will offer preferential policies to Xinjiang province.
Hang Seng ends 0.79% higher
Hong Kong share market closed modestly higher in volatile trade, as better-than-forecast Chinese trade data offset continued losses on Wall Street and a further slide in the price of oil. The benchmark index opened 118 points lower but gradually recovered its loss ground after China said its exports grew nearly 10% last month. The Hang Seng Index ended 189.51 points, or 0.79%, up at 24215.97, off an intra-day high of 24254.11 and low of 23908.23. Turnover reduced to HK$84.85 billion from HK$90 billion on Monday.
Shipping shares and airline companies were boosted by another fall in crude prices overnight in New York, with Orient Overseas (International) jumping 3% to HK$50.50, China Merchants Holdings (International) Co. climbing 3.7% to HK$26.90, and China Eastern Airlines Corp rising 2% to HK$4.01. However, China's biggest offshore oil producer Cnooc fell 1.7% to HK$10.46. State-owned energy giant PetroChina Co. once dropped 1.2%, but erased early losses and inched 0.2% higher to HK$8.79.
Hong Kong cosmetics retailer Sa Sa International Holdings fell 5.7% to HK$4.98 after the firm announced a fall in its quarterly same-store sales.
China Merchants gained 3.7% to HK$26.9 and SHKP added 3.4% to HK$123.6 on the back of better-than-expected trade data. CR Land (01109) dipped 4% to HK$21.2, as it went ex-dividend today.
Sensex snaps 3-day winning streak
Weakness during the latter part of the trading session pulled Indian benchmark indices lower. The decline in percentage terms in the barometer index, the S&P BSE Sensex, was much higher than the decline in the 50-unit CNX Nifty. The market breadth indicating the overall health of the market turned negative from positive in late trade. The Sensex declined 159.64 points or 0.58% to settle at 27,425.73. The CNX Nifty shed 23.60 points or 0.28% to settle at 8,299.40. Global crude oil prices slumped. India stands to benefit from a rout in global crude oil prices given that the nation meets 80% of its crude oil requirements from imports.
Macroeconomic data released after trading hours yesterday, 12 January 2015, showed a lower-than-expected acceleration in inflation based on the consumer price indices last month. Finance Minister Arun Jaitely yesterday, 12 January 2015, said that the government has taken major steps to improve the investment climate in the last several months and it will continue to do so.
Bank stocks dropped. IndusInd Bank dropped in volatile trade as the bank's gross non-performing assets (NPAs) rose on absolute basis in Q3 December 2014. Realty stocks edged lower. Shares of oil exploration & production (E&P) firms declined along with fall in crude oil prices. Shares of paint makers gained on lower crude oil prices.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.58% to 9231.80. South Korea KOSPI was down 0.2% to 1917.14. New Zealand's NZX50 rose 0.5% at 5636.61. Singapore's Straits Times index fell 0.1% at 3341.07. Indonesia's Jakarta Composite index rose 0.51% to 5214.36. Malaysia's KLCI rose 0.8% to 1748.90.
