Headline equities of the Asia Pacific market closed mostly down on
Tuesday, 10 February 2015, as risk aversion selloff on reigniting fears
of Greek debt default and concerns over conflict in Ukraine.
The probability of Greece leaving the euro zone has raised several notches as the country has taken an increasingly hard line over its government debt. Overnight, Greece's debt standoff with the euro zone escalated, triggering fears of a "Grexit" – Greek exit from the common currency – as the new Greek Prime Minister ruled out asking for an extension to the country's bailout.
Prime Minister Alexis Tsipras on Sunday ruled out extending Greece's bailout deal and said some of the reforms imposed by lenders would be reversed. European Commission President Jean-Claude Juncker raised tensions further on Monday by saying Greeks should not expect the euro zone to accept their latest terms.
Meanwhile, President Barack Obama said he wouldn't decide whether to supply weapons to Ukraine until European leaders exhaust one last diplomatic effort to resolve the conflict there.
Chinese data offered little help to risk assets, as signs of weakness in the world's second largest economy were reinforced by inflation hitting a five-year low. On the flip side, mounting concern over the slowdown should increase prospects for further stimulus.
Among Asian bourses
Australia stocks end lower as financials fall
The Australian share market ended softer, registering second drop in a row, as profit taking triggered in recent outperformers stocks after an unprecedented 12 days of rally. Meanwhile, selloff pressure was also fuelled by reignited fears of Geek debt default. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each declined by 0.2% to 5800.60 and 5757.40, respectively.
Shares of financial companies declined, with top four lenders leading the downfall. Commonwealth Bank of Australia lost 0.4% to A$92.59 ahead of its earnings result announcement on Wednesday. Westpac Banking Corp fell 0.7% to A$36.81, Australia and New Zealand Banking Group dropped 0.2% to A$34.90, and National Australia Bank declined 0.5% to A$37.03. Suncorp Group lost 2.6% to A$14.42 as investors awaited its earnings result on Wednesday.
Shares in mining services group Bradken plunged 22% to A$2.45 after the company posted a first-half loss of A$92.6 million. Bradken reported on Tuesday a net loss after tax of $92.6 million in the six months to December 31, compared with a net profit after tax of A$38.1 million in the previous corresponding period. The loss came after heavy write-downs of plant and equipment of A$51.1 million, and restructuring costs which reached A$47.1 million.
Law firm Slater & Gordon was up 8.6% to A$7.18, after announcing a 5.7% rise in net profit to A$33.73 million for the first half of 2014, and acquisition of two British law firms.
Tabcorp added 5.7% to A$4.98 after completing a A$142 million capital raising from institutional shareholders.
Japan shares ends mixed
Japanese share market closed lower, as the weakness of the greenback against the yen, uncertainties over the Greek situation and tension over Ukraine encouraged investors to lock in profits after yesterday`s gains. The benchmark Nikkei Stock Average fell 0.33% to 17652.68, while the broader Topix has gained 0.2% to 1427.72.
Shares of Nissan Motor Co rallied 3.8% to 1104.50 yen after the auto maker posted a more-than-20% profit gain and revised its full-year earnings outlook higher.
Inpex Corp shares rebounded 3.3% to 1396 yen after a sharp pullback on Monday on its earnings miss. Japan Petroleum Exploration Co. was up 2% to 3880 yen as oil prices improved.
Kajima Corp. soared 6.4% to 484 yen after reporting a surge in nine-month net income by 69% to 23.5 billion yen.
Air-conditioner maker Daikin Industries dropped 5.5% to 7676 yen after Credit Suisse Group AG said operating profit likely missed market expectations.
Tokyo Electron sank 3.6% to 8,234 yen after a report the Tokyo-based company and Applied Materials Inc. withdrew from a merger review by China's Ministry of Commerce.
China stocks extend gains on policy easing hopes
Mainland China share market finished the session sharply higher, as risk sentiments boosted up by soft Chinese inflation data which fuelled hopes of an impending interest rate cut by Beijing to boost the world's second-biggest economy. The Shanghai Composite Index climbed 1.5% to 3,141.59 at the close.
China's consumer price index (CPI), the main gauge of inflation, grew 0.8% year on year in January, the slowest rise in more than five years, the National Bureau of Statistics (NBS) said on Tuesday. Food prices, which account for nearly one-third of weighting in China's CPI, increased 1.1% year on year. On a monthly basis, consumer prices in January edged up 0.3%. The NBS attributed the tempering growth to retreating food prices due to warmer weather during the period. A bigger comparison base last year, and global oil prices also helped drag down the price levels. Meanwhile, China's producer price index (PPI), which measures wholesale inflation, plunged 4.3% year on year in January, marking the 35th straight month of decline, pointing to continued weak market demand.
Shares of financial and realty companies climbed up in Shanghai today. Poly Real Estate climbed 3.3%, while Gemdale Corp. added 2.5%. Bank shares also climbed, with China Citic Bank Corp. gaining 2.7% and China Construction Bank Corp. adding 1.1%.
Beijing Yanjing Brewery Co. jumped 3% after people with knowledge of the matter said the company plans to sell about 20% stake to a foreign investor.
Hong Kong stocks closed virtually unchanged
Hong Kong share market ended marginally higher after moving in and out of the boundary line in quiet trade, as buying spree supported by tracking strength in the Mainland A-share market today offset by intensifying fears of Greek debt default. The Hang Seng Index ended up 7.10 points or 0.03% to 24528.10, off an intra-day high of 24422.85 and day low of 24583.79. Turnover declined to HK$64.04 billion from HK$67.23 billion on Monday.
Chinese auto makers mostly rose, as data from an industry group showed China's domestic auto sales climbed 7.6% in January from a year ago. Brilliance China Automotive Holdings jumped 2.2% to HK$13.80 and Dongfeng Motor Group Co advanced 1.6% to HK$11.52.
HSBC (00005) slipped 1.3% to HK$71.85, extending losses after a report over the weekend on alleged tax evasion and money laundering at its Swiss unit. The global bank was accused to help its rich clients to dodge tax.
Hong Kong Exchanges & Clearing dropped 0.3% to HK$176.50, despite comments by the exchange's chief executive Charles Li on Tuesday that they would likely expand the stocks mainland investors can buy via the Shanghai-Hong Kong Connect program, while the second half of this year might be a “realistic timing” for the launch of Shenzhen-Hong Kong Stock Connect.
Sensex rebounds
Indian stock market closed higher on bouts of value buying in most sectors led by banking, auto, consumer durables, metal, power and FMCG, with BSE benchmark up by just 42.97 points before moving up to 112.70 points to 28340.09 at pre-close. NSE Nifty was also up by 42.10 points to 8568.45.
Major gainers were Hindalco (3.93%), ICICI Bank (3.18%), SBIN (2.84%), TataMotors (2.73%), BHEL (2.34%) and SSLT (2.29%).
Meanwhile, foreign portfolio investors sold Indian shares worth a net Rs 660.30 crore yesterday, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 0.3% to 9393.70. South Korea KOSPI shed 0.6% to 1935.86. New Zealand market rose 0.3% to 5784.09. Indonesia's Jakarta Composite index declined 0.5% to 5321.47. Singapore's Straits Times index was up 0.4% at 3430.34. Malaysia's KLCI was down 0.03% to 1811.12.
The probability of Greece leaving the euro zone has raised several notches as the country has taken an increasingly hard line over its government debt. Overnight, Greece's debt standoff with the euro zone escalated, triggering fears of a "Grexit" – Greek exit from the common currency – as the new Greek Prime Minister ruled out asking for an extension to the country's bailout.
Prime Minister Alexis Tsipras on Sunday ruled out extending Greece's bailout deal and said some of the reforms imposed by lenders would be reversed. European Commission President Jean-Claude Juncker raised tensions further on Monday by saying Greeks should not expect the euro zone to accept their latest terms.
Meanwhile, President Barack Obama said he wouldn't decide whether to supply weapons to Ukraine until European leaders exhaust one last diplomatic effort to resolve the conflict there.
Chinese data offered little help to risk assets, as signs of weakness in the world's second largest economy were reinforced by inflation hitting a five-year low. On the flip side, mounting concern over the slowdown should increase prospects for further stimulus.
Among Asian bourses
Australia stocks end lower as financials fall
The Australian share market ended softer, registering second drop in a row, as profit taking triggered in recent outperformers stocks after an unprecedented 12 days of rally. Meanwhile, selloff pressure was also fuelled by reignited fears of Geek debt default. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each declined by 0.2% to 5800.60 and 5757.40, respectively.
Shares of financial companies declined, with top four lenders leading the downfall. Commonwealth Bank of Australia lost 0.4% to A$92.59 ahead of its earnings result announcement on Wednesday. Westpac Banking Corp fell 0.7% to A$36.81, Australia and New Zealand Banking Group dropped 0.2% to A$34.90, and National Australia Bank declined 0.5% to A$37.03. Suncorp Group lost 2.6% to A$14.42 as investors awaited its earnings result on Wednesday.
Shares in mining services group Bradken plunged 22% to A$2.45 after the company posted a first-half loss of A$92.6 million. Bradken reported on Tuesday a net loss after tax of $92.6 million in the six months to December 31, compared with a net profit after tax of A$38.1 million in the previous corresponding period. The loss came after heavy write-downs of plant and equipment of A$51.1 million, and restructuring costs which reached A$47.1 million.
Law firm Slater & Gordon was up 8.6% to A$7.18, after announcing a 5.7% rise in net profit to A$33.73 million for the first half of 2014, and acquisition of two British law firms.
Tabcorp added 5.7% to A$4.98 after completing a A$142 million capital raising from institutional shareholders.
Japan shares ends mixed
Japanese share market closed lower, as the weakness of the greenback against the yen, uncertainties over the Greek situation and tension over Ukraine encouraged investors to lock in profits after yesterday`s gains. The benchmark Nikkei Stock Average fell 0.33% to 17652.68, while the broader Topix has gained 0.2% to 1427.72.
Shares of Nissan Motor Co rallied 3.8% to 1104.50 yen after the auto maker posted a more-than-20% profit gain and revised its full-year earnings outlook higher.
Inpex Corp shares rebounded 3.3% to 1396 yen after a sharp pullback on Monday on its earnings miss. Japan Petroleum Exploration Co. was up 2% to 3880 yen as oil prices improved.
Kajima Corp. soared 6.4% to 484 yen after reporting a surge in nine-month net income by 69% to 23.5 billion yen.
Air-conditioner maker Daikin Industries dropped 5.5% to 7676 yen after Credit Suisse Group AG said operating profit likely missed market expectations.
Tokyo Electron sank 3.6% to 8,234 yen after a report the Tokyo-based company and Applied Materials Inc. withdrew from a merger review by China's Ministry of Commerce.
China stocks extend gains on policy easing hopes
Mainland China share market finished the session sharply higher, as risk sentiments boosted up by soft Chinese inflation data which fuelled hopes of an impending interest rate cut by Beijing to boost the world's second-biggest economy. The Shanghai Composite Index climbed 1.5% to 3,141.59 at the close.
China's consumer price index (CPI), the main gauge of inflation, grew 0.8% year on year in January, the slowest rise in more than five years, the National Bureau of Statistics (NBS) said on Tuesday. Food prices, which account for nearly one-third of weighting in China's CPI, increased 1.1% year on year. On a monthly basis, consumer prices in January edged up 0.3%. The NBS attributed the tempering growth to retreating food prices due to warmer weather during the period. A bigger comparison base last year, and global oil prices also helped drag down the price levels. Meanwhile, China's producer price index (PPI), which measures wholesale inflation, plunged 4.3% year on year in January, marking the 35th straight month of decline, pointing to continued weak market demand.
Shares of financial and realty companies climbed up in Shanghai today. Poly Real Estate climbed 3.3%, while Gemdale Corp. added 2.5%. Bank shares also climbed, with China Citic Bank Corp. gaining 2.7% and China Construction Bank Corp. adding 1.1%.
Beijing Yanjing Brewery Co. jumped 3% after people with knowledge of the matter said the company plans to sell about 20% stake to a foreign investor.
Hong Kong stocks closed virtually unchanged
Hong Kong share market ended marginally higher after moving in and out of the boundary line in quiet trade, as buying spree supported by tracking strength in the Mainland A-share market today offset by intensifying fears of Greek debt default. The Hang Seng Index ended up 7.10 points or 0.03% to 24528.10, off an intra-day high of 24422.85 and day low of 24583.79. Turnover declined to HK$64.04 billion from HK$67.23 billion on Monday.
Chinese auto makers mostly rose, as data from an industry group showed China's domestic auto sales climbed 7.6% in January from a year ago. Brilliance China Automotive Holdings jumped 2.2% to HK$13.80 and Dongfeng Motor Group Co advanced 1.6% to HK$11.52.
HSBC (00005) slipped 1.3% to HK$71.85, extending losses after a report over the weekend on alleged tax evasion and money laundering at its Swiss unit. The global bank was accused to help its rich clients to dodge tax.
Hong Kong Exchanges & Clearing dropped 0.3% to HK$176.50, despite comments by the exchange's chief executive Charles Li on Tuesday that they would likely expand the stocks mainland investors can buy via the Shanghai-Hong Kong Connect program, while the second half of this year might be a “realistic timing” for the launch of Shenzhen-Hong Kong Stock Connect.
Sensex rebounds
Indian stock market closed higher on bouts of value buying in most sectors led by banking, auto, consumer durables, metal, power and FMCG, with BSE benchmark up by just 42.97 points before moving up to 112.70 points to 28340.09 at pre-close. NSE Nifty was also up by 42.10 points to 8568.45.
Major gainers were Hindalco (3.93%), ICICI Bank (3.18%), SBIN (2.84%), TataMotors (2.73%), BHEL (2.34%) and SSLT (2.29%).
Meanwhile, foreign portfolio investors sold Indian shares worth a net Rs 660.30 crore yesterday, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 0.3% to 9393.70. South Korea KOSPI shed 0.6% to 1935.86. New Zealand market rose 0.3% to 5784.09. Indonesia's Jakarta Composite index declined 0.5% to 5321.47. Singapore's Straits Times index was up 0.4% at 3430.34. Malaysia's KLCI was down 0.03% to 1811.12.
