Headline equities of the Asia Pacific market mostly declined on Monday,
09 February 2015, on dismal Chinese trade data and concerns over the
intensifying standoff between Greece's new government and the EU.
China's trade performance slumped in January. Exports fell 3.3% from a year earlier while imports tumbled 19.9%, leaving a trade surplus of $60 billion. The worse-than-expected trade data intensifying a slowdown concerns in the world second largest economy.
Chinese economic data is usually volatile at the beginning of the year because of Lunar New Year holidays, which falls in January or February each year. But the particularly sharp fall added to worries that the world's second biggest economy is still weakening after growth in 2014 hit a 24-year low.
Investors were also fretted over the intensifying standoff between Greece's new government and the EU. The new prime minister of Greece outlined his government's policy statement to lawmakers on Sunday, declaring an end to austerity. Greece's government defies European pressure and insists it will seek a bridging loan, raising fears of a new eurozone crisis.
Putting Greece firmly on collision course with its European partners, Prime Minister Alexis Tsipras on Sunday unveiled plans to unravel several austerity measures that were conditions for the country's 240 billion-euro ($272 billion) bailout program. He also reiterated calls for a bridge-loan program from international creditors, refusing to accept an extension to the current bailout agreement.
Standard & Poor's on Friday downgraded Greece's long-term rating to B-minus from B and kept the rating on CreditWatch negative, meaning it could downgrade it again in the near term. The move has pushed the rating further into speculative, or junk status. "Liquidity constraints have narrowed the timeframe during which Greece's new government can reach an agreement with its official creditors on a financing program, in our view," the rating agency said in a statement. "We believe the potential uncertainties surrounding the timing and success of such an agreement risk exacerbating deposit outflows, depressing investment, and weakening tax compliance."
Among Asian bourses
Australia stocks end lower as miners fall on China data
The Australian share market finished the session down, registering first drop in last thirteen sessions, as negative lead from offshore market on Friday and weak Chinese trade data. Domestically, political uncertainty weighed on investor sentiment as Prime Minister Tony Abbott narrowly escaped facing a leadership spill. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each 0.1% declined to 5814.90 and 5770.10, respectively.
Shares of materials and resources companies declined the most in Sydney market today, hurt by data out Sunday showing a sharp 20% fall in China's January imports amid softness in raw-materials purchases. Resources giant BHP Billiton lost 1% to A$31.23 while its main rival Rio Tinto saw a slight milder loss of 0.5% to A$60.31, as J.P. Morgan predicted the mining major would announce an up-to-US$2-billion share repurchase when it issues its full-year results on Thursday. Fortescue Metals Group slipped 1.6% to A$2.50. Also, weakening for gold prices was pressing Evolution Mining down 3.4% to A$1 and Newcrest Mining down 2.5% to A$13.88.
Japan shares post modest gain
Japanese share market closed higher, as investment appetite for risk improved by greenback strength against yen and strong buying in bellwethers shares such as NTT, Kubota, and Meiji Holdings. The benchmark Nikkei Stock Average added 0.4% to 17711.93, while the broader Topix has gained 0.6% to 1424.92.
Export related stocks gained the most in Tokyo, benefiting from the dollar's rise against the yen. The yen gained 0.3% to 118.81 per dollar after falling 1.3% on Friday. Investors generally prefer a higher dollar-yen value, as exporters can price their goods more competitively overseas and earn more yen when they send the profits back home.
Bridgestone Corp., the tiremaker that gets 81% of revenue from overseas, gained 1.7% to 4,559 yen. Nissan added 1.4% to 1,064 yen.
Dai-Ichi Life Insurance advanced 3.8% to 1,720 yen on reports the insurer will buy a stake in lender Resona to boost sales of insurance products through Resona's branches. Resona gained 1.7% to 632.7 yen.
Nippon Telegraph jumped 4.9% to 7,212 yen after reporting third-quarter net income rose to 159.6 billion yen.
Olympus dropped 3% to 4000 yen after the endoscope-maker o reported net income fell 30% to 9.6 billion yen, below expectations of 12.3 billion yen.
Dairy products maker Meiji Holdings gained 6.2% to 12890 yen after announcing a 52% rise in quarterly operating profits to 2.4 billion yen, prompting a slew of brokerage upgrades.
Agricultural machinery maker Kubota added 5.2% to 1789 yen after booking a 11% rise in third quarter operating profit to 49.1 billion yen and announcing a share buyback of up to Y7.5 million shares for Y10.0 billion (representing 0.6% of shares outstanding).
China stocks rebound as first stock options debut
Mainland China share market ended higher, recovering from slides the previous week, amid speculation recent market losses were excessive and as excitement around the launch of the country's first stock options. But gains were limited after worse-than-expected trade data and concerns that raft of new initial public offerings (IPOs) due this week will hurt market liquidity. The Shanghai Composite Index closed 0.62% higher at 3095.12. The Shanghai gauge had fallen 4.2% last week.
China's first options, based on the exchange-trade fund (ETF), began trading in Shanghai. It's the first new equity derivative allowed by Chinese regulators since the 2010 introduction of index futures. The underlying ETF tracks the SSE50 index, composed of the 50 most heavily weighted stocks on the bourse, reflecting regulators' desire to guide money into blue chips.
Twenty-four companies will start to sell initial public offering shares this week, with three on Monday. The sales may freeze 2.05 trillion yuan, according to media reports.
Shares of financial and consumer-staples companies climbed the most in Shanghai today, aided by launch of China's first options based on the exchange-trade fund (ETF). Bank of China was up 0.5% to 4.03 yuan, CITIC Securities added 3.9% to 29.41 yuan and Agricultural Bank of China rose 0.3% to 3.23 yuan. Changjiang Securities climbed up 7.6% to 14.09 yuan. Wuliangye Yibin Co., the second-biggest producer of baijiu liquor after Moutai, added 1.7%.; Shenwan Hongyuan was up 3.8% to 15.52 yuan.
Hong Kong stocks fall on poor China trade data
Hong Kong share market ended softer in quiet trade, registering second consecutive decline, due to weak offshore cues and disappointing Chinese trade data. The Hang Seng Index ended down 158.39 points or 0.64% to 24521, off an intra-day high of 24657.87 and day low of 24449.48. Turnover declined to HK$67.23 billion from HK$75.94 billion on Friday.
Shares of Sunac (01918) put on 3.6% to HK$7.19 on resumption of trading after it announced to spend RMB4.5 billion to acquire a 49% stake in Kaisa (01628), which soared 17.6% to HK$1.87, as the company said it plans to sell part of its project companies to improve its cash position.
Shares of telecom players rallied after a newswire reported that EU is seeking Chinese enterprises to invest in telecom industry. China Unicom (00762) rose 1% to HK$12.9. China Telecom (00728) gained 1.8% to HK$4.85. But China Mobile (00941) dipped 2% to HK$103.9 on profit taking selling.
Lenovo (00992) gained 3% to HK$11.86 on the back of funds' buying. Want Want (00151) slipped 3.4% to HK$8.57 after the company issued profit warning.
Sensex, Nifty hit lowest closing level in more than 3 weeks
Prospects of victory for the Aam Aadmi Party (AAP) in assembly elections in Delhi, disappointing Chinese trade data and a setback for European stocks triggered by intensifying standoff between Greece's new government and the European Union (EU) sent key equity benchmark in India tumbling on the first trading session of the week. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest closing level in more than three weeks. Losses for the Sensex and the Nifty widened in late trade as shares of index heavyweight L&T slumped soon after the company reported weak Q3 December 2014 results. L&T's results hit the markets in late trade.
The BSE Sensex declined 490.52 points or 1.71% to settle at 28,227.39, its lowest closing level since 16 January 2015. The CNX Nifty dropped 134.70 points or 1.56% to settle at 8,526.35.
Shares of public sector banks declined. Jammu & Kashmir Bank slumped after weak Q3 results. Sun TV Network jumped on good Q3 results. Shares of public sector oil marketing companies fell after global crude oil prices extended recent gains. Metal and mining stocks declined after weak Chinese trade data. Tata Steel edged lower after poor Q3 results. NMDC edged lower after the company announced a sharp reduction in iron ore prices for February 2015. Realty stocks declined.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 0.4% to 9421.50. South Korea KOSPI shed 0.44% to 1947. New Zealand market fell 0.5% to 5769.57. Singapore's Straits Times index was down 0.4% at 3418.02. Malaysia's KLCI was down 0.1% to 1811.58. Indonesia's Jakarta Composite index added 0.1% to 5348.47.
China's trade performance slumped in January. Exports fell 3.3% from a year earlier while imports tumbled 19.9%, leaving a trade surplus of $60 billion. The worse-than-expected trade data intensifying a slowdown concerns in the world second largest economy.
Chinese economic data is usually volatile at the beginning of the year because of Lunar New Year holidays, which falls in January or February each year. But the particularly sharp fall added to worries that the world's second biggest economy is still weakening after growth in 2014 hit a 24-year low.
Investors were also fretted over the intensifying standoff between Greece's new government and the EU. The new prime minister of Greece outlined his government's policy statement to lawmakers on Sunday, declaring an end to austerity. Greece's government defies European pressure and insists it will seek a bridging loan, raising fears of a new eurozone crisis.
Putting Greece firmly on collision course with its European partners, Prime Minister Alexis Tsipras on Sunday unveiled plans to unravel several austerity measures that were conditions for the country's 240 billion-euro ($272 billion) bailout program. He also reiterated calls for a bridge-loan program from international creditors, refusing to accept an extension to the current bailout agreement.
Standard & Poor's on Friday downgraded Greece's long-term rating to B-minus from B and kept the rating on CreditWatch negative, meaning it could downgrade it again in the near term. The move has pushed the rating further into speculative, or junk status. "Liquidity constraints have narrowed the timeframe during which Greece's new government can reach an agreement with its official creditors on a financing program, in our view," the rating agency said in a statement. "We believe the potential uncertainties surrounding the timing and success of such an agreement risk exacerbating deposit outflows, depressing investment, and weakening tax compliance."
Among Asian bourses
Australia stocks end lower as miners fall on China data
The Australian share market finished the session down, registering first drop in last thirteen sessions, as negative lead from offshore market on Friday and weak Chinese trade data. Domestically, political uncertainty weighed on investor sentiment as Prime Minister Tony Abbott narrowly escaped facing a leadership spill. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each 0.1% declined to 5814.90 and 5770.10, respectively.
Shares of materials and resources companies declined the most in Sydney market today, hurt by data out Sunday showing a sharp 20% fall in China's January imports amid softness in raw-materials purchases. Resources giant BHP Billiton lost 1% to A$31.23 while its main rival Rio Tinto saw a slight milder loss of 0.5% to A$60.31, as J.P. Morgan predicted the mining major would announce an up-to-US$2-billion share repurchase when it issues its full-year results on Thursday. Fortescue Metals Group slipped 1.6% to A$2.50. Also, weakening for gold prices was pressing Evolution Mining down 3.4% to A$1 and Newcrest Mining down 2.5% to A$13.88.
Japan shares post modest gain
Japanese share market closed higher, as investment appetite for risk improved by greenback strength against yen and strong buying in bellwethers shares such as NTT, Kubota, and Meiji Holdings. The benchmark Nikkei Stock Average added 0.4% to 17711.93, while the broader Topix has gained 0.6% to 1424.92.
Export related stocks gained the most in Tokyo, benefiting from the dollar's rise against the yen. The yen gained 0.3% to 118.81 per dollar after falling 1.3% on Friday. Investors generally prefer a higher dollar-yen value, as exporters can price their goods more competitively overseas and earn more yen when they send the profits back home.
Bridgestone Corp., the tiremaker that gets 81% of revenue from overseas, gained 1.7% to 4,559 yen. Nissan added 1.4% to 1,064 yen.
Dai-Ichi Life Insurance advanced 3.8% to 1,720 yen on reports the insurer will buy a stake in lender Resona to boost sales of insurance products through Resona's branches. Resona gained 1.7% to 632.7 yen.
Nippon Telegraph jumped 4.9% to 7,212 yen after reporting third-quarter net income rose to 159.6 billion yen.
Olympus dropped 3% to 4000 yen after the endoscope-maker o reported net income fell 30% to 9.6 billion yen, below expectations of 12.3 billion yen.
Dairy products maker Meiji Holdings gained 6.2% to 12890 yen after announcing a 52% rise in quarterly operating profits to 2.4 billion yen, prompting a slew of brokerage upgrades.
Agricultural machinery maker Kubota added 5.2% to 1789 yen after booking a 11% rise in third quarter operating profit to 49.1 billion yen and announcing a share buyback of up to Y7.5 million shares for Y10.0 billion (representing 0.6% of shares outstanding).
China stocks rebound as first stock options debut
Mainland China share market ended higher, recovering from slides the previous week, amid speculation recent market losses were excessive and as excitement around the launch of the country's first stock options. But gains were limited after worse-than-expected trade data and concerns that raft of new initial public offerings (IPOs) due this week will hurt market liquidity. The Shanghai Composite Index closed 0.62% higher at 3095.12. The Shanghai gauge had fallen 4.2% last week.
China's first options, based on the exchange-trade fund (ETF), began trading in Shanghai. It's the first new equity derivative allowed by Chinese regulators since the 2010 introduction of index futures. The underlying ETF tracks the SSE50 index, composed of the 50 most heavily weighted stocks on the bourse, reflecting regulators' desire to guide money into blue chips.
Twenty-four companies will start to sell initial public offering shares this week, with three on Monday. The sales may freeze 2.05 trillion yuan, according to media reports.
Shares of financial and consumer-staples companies climbed the most in Shanghai today, aided by launch of China's first options based on the exchange-trade fund (ETF). Bank of China was up 0.5% to 4.03 yuan, CITIC Securities added 3.9% to 29.41 yuan and Agricultural Bank of China rose 0.3% to 3.23 yuan. Changjiang Securities climbed up 7.6% to 14.09 yuan. Wuliangye Yibin Co., the second-biggest producer of baijiu liquor after Moutai, added 1.7%.; Shenwan Hongyuan was up 3.8% to 15.52 yuan.
Hong Kong stocks fall on poor China trade data
Hong Kong share market ended softer in quiet trade, registering second consecutive decline, due to weak offshore cues and disappointing Chinese trade data. The Hang Seng Index ended down 158.39 points or 0.64% to 24521, off an intra-day high of 24657.87 and day low of 24449.48. Turnover declined to HK$67.23 billion from HK$75.94 billion on Friday.
Shares of Sunac (01918) put on 3.6% to HK$7.19 on resumption of trading after it announced to spend RMB4.5 billion to acquire a 49% stake in Kaisa (01628), which soared 17.6% to HK$1.87, as the company said it plans to sell part of its project companies to improve its cash position.
Shares of telecom players rallied after a newswire reported that EU is seeking Chinese enterprises to invest in telecom industry. China Unicom (00762) rose 1% to HK$12.9. China Telecom (00728) gained 1.8% to HK$4.85. But China Mobile (00941) dipped 2% to HK$103.9 on profit taking selling.
Lenovo (00992) gained 3% to HK$11.86 on the back of funds' buying. Want Want (00151) slipped 3.4% to HK$8.57 after the company issued profit warning.
Sensex, Nifty hit lowest closing level in more than 3 weeks
Prospects of victory for the Aam Aadmi Party (AAP) in assembly elections in Delhi, disappointing Chinese trade data and a setback for European stocks triggered by intensifying standoff between Greece's new government and the European Union (EU) sent key equity benchmark in India tumbling on the first trading session of the week. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest closing level in more than three weeks. Losses for the Sensex and the Nifty widened in late trade as shares of index heavyweight L&T slumped soon after the company reported weak Q3 December 2014 results. L&T's results hit the markets in late trade.
The BSE Sensex declined 490.52 points or 1.71% to settle at 28,227.39, its lowest closing level since 16 January 2015. The CNX Nifty dropped 134.70 points or 1.56% to settle at 8,526.35.
Shares of public sector banks declined. Jammu & Kashmir Bank slumped after weak Q3 results. Sun TV Network jumped on good Q3 results. Shares of public sector oil marketing companies fell after global crude oil prices extended recent gains. Metal and mining stocks declined after weak Chinese trade data. Tata Steel edged lower after poor Q3 results. NMDC edged lower after the company announced a sharp reduction in iron ore prices for February 2015. Realty stocks declined.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 0.4% to 9421.50. South Korea KOSPI shed 0.44% to 1947. New Zealand market fell 0.5% to 5769.57. Singapore's Straits Times index was down 0.4% at 3418.02. Malaysia's KLCI was down 0.1% to 1811.58. Indonesia's Jakarta Composite index added 0.1% to 5348.47.
