Headline equities of the Asia Pacific market closed mixed on Friday, 27
March 2015, as bargain buying resumed late afternoon following a weak
trade early morning and yesterday's steep selloff. But move on the
upside was marginal as investors remained cautious and avoided taking
strong, lopsided positions amid fears about the Yemen crisis and ahead
of U.S. gross domestic product data and speech by Federal Reserve
Chairwoman Janet Yellen later Friday.
Investors reassessed the potential impact of the escalating conflict in
Yemen, where Saudi Arabia and allies carried out air strikes on
Iranian-backed Houthi rebels on Thursday. Oil prices initially spiked on
concerns that the conflict could close the Bab-el-Mandeb strait, a key
shipping route for oil tankers located between Yemen and Djibouti.
However, fears of a closure eased on Friday as oil prices resumed their
declines; U.S. crude and Brent both fell nearly 2% during Asian trade
following a 5% surge overnight.
Among Asian bourses
Nikkei slips 1%
Japanese share market declined for second consecutive session, as profit
booking continued on tracking a negative lead overseas market
overnight, weaker than expected domestic economic data, and ahead of the
March 31 end of the Japanese fiscal year. Meanwhile, selloff pressure
intensified amid renewed fears about the Yemen crisis, and ahead of
speech by Federal Reserve Chairwoman Janet Yellen and U.S. gross
domestic product data later in the global day. The Nikkei Stock Average
retreated 185.49 points, or 0.95%, to close at 19285.63. The broader
Topix index dropped 16.04 points, or 1.02%, to 1552.78.
Exporters stocks declined on the back of a slightly stronger yen. The
dollar was flat at 119.22 yen after pulling back from a five-week trough
of 118.33 struck overnight. The yen, as a safe-haven currency, tends to
attracts bids at times of geopolitical tension. Nissan Motor Co dived
3% to 1217 yen and Toshiba Corp eased 3.4% to 513.20 yen. Japan Display
lost 3.3% to 412 yen.
Panasonic Corp jumped 3.2% to 1576.50 yen after announcing it aims to
boost its operating profit nearly a quarter in the fiscal year starting
next month, expanding sales in the automotive technology and housing
equipment sectors. Panasonic said at a briefing in the Japanese capital
that it is targeting operating profit of 430 billion yen in the coming
fiscal year, up from the 350 billion yen it has forecast it will report
for the year ending March 31.
The Ministry of Internal Affairs and Communications has released Japan's
consumer price index data on Friday, showing nation core consumer price
index (excluding perishables but including energy) rose 2.0% on year in
February vs. +2.2% in January.
Preliminary retail sales data from the Ministry of Economy, Trade and
Industry released on Friday, indicating Japan's retail sales fell 1.8 %
at Y10.72 trillion on year in February. The pace of decline decelerated
slightly from 2% fall in January.
Data from the Ministry of Internal Affairs and Communications released
on Friday showing Japan's seasonally adjusted average unemployment rate
dropped to 3.5% in February from 3.6% in January
Australia market rebounds 0.7% on bargain hunting
The Australian share market closed the session with gain, on the back of
bottom fishing following yesterday's steep selloff, with shares of
utilities, consumer goods, retailers, realty, industrials and financial
being major gainers. But, gain on the market was limited as overall
sentiments remain bleak amid renewed concerns about US economy and
geopolitical tension in the Arabian Peninsula (fight between a Saudi-led
coalition and Houthi rebels in Yemen). The benchmark S&P/ASX 200
Index advanced 40.80 points, or 0.69%, to 5919.90, while the broader All
Ordinaries Index inclined 39.20 points, or 0.67%, to 5888.90. Market
turnover was moderate, with 1.57 billion shares changing hands worth of
A$4.2 billion. For the week, The All Ordinaries finished 0.8% down,
while the S&P/ASX 200 index was 0.9% down.
Shares of Australian retailers and consumer related companies were also
higher, with supermarket owners Wesfarmers gaining 1.5% to A$44.04 and
Woolworths adding 2.4% to A$29.62. Fairfax Media added 1.6% to A$0.955,
Myer Holdings 0.4% to A$1.35 and Ten Network Holdings 2.3% to A$0.225.
Australian mining stocks closed mixed, with Oz Minerals rising 0.5% to
A$3.87 and Rio Tinto adding 0.1% to A$56.55. Iron-ore miner Fortescue
Metals Group sank 5.7% to A$2. BHP Billiton declined 0.1% to A$30.75
after reports that heavy rain in northern Chile had affected some of its
operations. Gold extractor Evolution Mining slipped 1.2% to A$0.84 on
news it was in talks to buy some Australian mines from privately held La
Mancha Resources Inc.
China market extends gain on policy support hopes
Mainland China share market closed higher after erasing early losses,
registering twelfth gain in last thirteen sessions. The gain came on
reinforcing expectation of increased policy support from the government,
after official data indicating industrial profits fell 4.2% for the
first two months of 2015, the worst decline in three years. Risk
sentiments underpinned further after the government raising limits in
its qualified investor scheme. The Shanghai Composite Index closed 9
points, or 0.24%, higher at 3691.10, extending this week's gain to 2%..
The CSI300 index, the largest listed companies in Shanghai and Shenzhen,
added 21.70 points, or 0.55%, to 3971.70.
The impact of poor economic data was offset by expectations of fresh
money inflows after China waived the $1 billion limit on a foreign fund
investment under the Qualified Foreign Institutional Investor (QFII)
scheme.
Barring energy issue (down 0.2%), all SSE industry groups advanced, led
by healthcare issue, with a gain of 0.9%, followed by telecommunication
services (up 0.8%), materials (up 0.7%), consumer discretionary (up
0.7%), information technology (up 0.6%), industrials (up 0.5%),
financial (up 0.2%), consumer staples (0.1%), and energy (up 0.1%).
Shares of industrial companies rallied after the government signaled it
will accelerate overseas infrastructure projects to reduce overcapacity.
Power Construction Corp. of China surged 4.7% to 9.19 yuan. China
Communications Construction jumped by the 10% daily limit at 16.30 yuan
and China Railway Construction Corp. jumped 3.8% to 17.88 yuan on
speculation the government will announce details of its Silk Road plan
at the on-going Boao forum.
Property developers were also stronger on a report China will seek to
reduce land oversupply. China Vanke Co advanced 3.1% to 13.35 yuan.
Gemdale Corp jumped 5.1% to 10.66 yuan and Poly Real Estate Group Co
surged 3.9% to 10.77 yuan.
PetroChina Co slid 2.4% to 11.70 yuan after it reported annual net income fell 17% to 107.2 billion yuan in 2014.
Hong Kong market ends virtually flat
Hong Kong stock market finished the session with marginal losses in
lacklustre trade, as risk sentiments turned bleak on tracking the softer
performance of overseas markets overnight amid rising tensions in the
Middle East. The Hang Seng Index declined 10.88 points, or 0.04%, to
close at 24486.20, off an intra-day high of 24549.68 and intra-day low
of 24420.474. Turnover decreased to HK$77.88 billion from HK$83.21
billion on Thursday.
Shares of financial companies declined the most in Hong Kong bourse
after China's major state-owned lenders reported lacklustre annual
results, with Industrial & Commercial Bank of China down 1.3% to
HK$5.50 after its 2014 profit increased by a less-than-expected 5%.
Bank of China dropped 0.9% to HK$4.32, China Citic Bank Corp 0.7% to
HK$5.64, China
Construction Bank Corp 1.1% to HK$6.31 and Bank of
Communications Co 0.9% to HK$6.38.
Property stocks traded higher on reports that Beijing had issued notices
urging local governments to support residents needing to improve their
housing conditions, and reduce or even suspend land supply in cities
where there was a surplus of housing. The upbeat momentum also
boosted-up on hopes government will announce fresh measures soon,
including tax cuts and a reduction in mortgage lending rates, to aid the
struggling property sector. China Resources Land jumped 5% to HK$21.90
and China Overseas Land & Investment rose 3.5% to HK$24.95.
Global Brands (00787) soared 12.3% to HK$1.37. Its CEO Bruce Rockowitz
disclosed that Seven Global, a joint venture with football star David
Beckham, aims at achieving revenues of US$1 billion in five years.
Sensex closes flat
Indian market closed closed little changed in volatile trade, posting
their third consecutive weekly loss on concerns about rising tensions in
the Middle East. As per provisional closing, the S&P BSE Sensex was
up 26.84 points or 0.1% at 27,484.42. The 50-unit CNX Nifty was off
0.75 points or 0.01% at 8,341.40.
Indian index heavyweights HDFC, ITC, and Reliance Industries dropped
even as other heavyweights viz. Infosys, L&T and HDFC Bank edged
higher. IT stocks rose after global consulting and outsourcing firm
Accenture raised its full year revenue growth forecast for the second
time in a year. Oil & gas stocks declined.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 521.23
crore yesterday, 26 March 2015, as per provisional data released by the
stock exchanges. Domestic institutional investors (DIIs) bought shares
worth a net Rs 687.09 crore yesterday, 26 March 2015, as per provisional
data.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell
0.1% to 2019.80. Taiwan's Taiex declined 1.2% to 9503.72. New Zealand
NZX50 was up 0.36% to 58354.25. Indonesia's Jakarta Composite index
added 0.52% to 5396.85. Singapore's Straits Times index grew 0.54% at
3450.10. Malaysia's KLCI dropped 0.28% to 1813.37.
