Headline equities of the Asia Pacific market closed mixed in lacklustre
trade on Wednesday, 25 March 2015, amid conflicting batch of economic
data from the U.S. and China, the world's two biggest economies.
Risk sentiments muted throughout the day amid lingering fears about China's weakening growth as well as renewed speculation of interest rate rises by the US Federal Reserve after recent economic data on the world's two biggest economies. The U.S. government data showed that in February consumer prices rose in for the first time in four months while new home sales climbed to their fastest pace in seven years. That was a good sign for the world's No. 1 economy that nonetheless also raises concerns the Fed could soon raise interest rates.
The reports came after HSBC's preliminary purchasing managers' index showed Chinese manufacturing activity slumped to the lowest in 11-months, signaling further weakness in the second biggest economy.
Among Asian bourses
Nikkei rises 0.2%
Japanese share market has managed to eke out a minimal gain at the close, after fluctuating throughout the day. The Nikkei Stock Average advanced 32.75 points, or 0.17%, to close at 19746.20. The broader Topix index added 4.42 points, or 0.28%, to 1592.01.
Shares of textile makers were the biggest gainers in the Tokyo, with Toray Industries leading with a 2.9% advance to 1,051.5 yen. Polyester manufacturer Teijin Ltd. added 3% to 415 yen.
Shares of blue-chip pharmaceutical companies mixed with Eisai Co. falling 5.4% to 9,050 yen amid profit-taking after the drug maker surged 30% over the past two days. Santen Pharmaceutical Co jumped 7.6% to 9,050 yen after raising its profit forecast and dividend.
Toyo Engineering dropped 15% to 335 yen after saying its wholly-owned Brazilian subsidiary suffered operational difficulties and cost overruns that will result in a loss of 17 billion yen.
Kyushu Electric jumped 3.1% to 1,127 yen after the Nuclear Regulatory Authority said yesterday it'll begin pre-operation inspections at the utility's Sendai No. 1 plant on March 30. The move comes after the local government gave a green light to restarting operations in November.
The Bank of Japan said on Wednesday that Japan's service producer prices rose 3.3% in February for the 20th straight year-on-year rise but the pace of increase decelerated further from an upwardly revised +3.5% in January. Excluding the direct effect of the April sales tax hike, SPPI rose 0.6% on year in February after rising a revised 0.8% in January.
Australia market ekes out a gain
The Australian share market managed to eke out marginal gain in lackluster trade, thanks to gains in blue-chip lenders, retailers and property trusts which helping to offset losses elsewhere. The benchmark S&P/ASX 200 Index advanced 4.20 points, or 0.07%, to 5973.30, its highest level in more than seven years, while the broader All Ordinaries Index grew 2.60 points, or 0.04%, to 5937.10. Market turnover was relatively light, with 1.35 billion shares changing hands worth of A$2.6 billion. Rising stocks outperformed by declining ones, with total of 626 stocks up, while remaining 594 down.
Financial stocks moved higher, with top four lenders leading rally. Commonwealth Bank, Westpac Banking Corp, and ANZ Banking Group all gained 0.8% to A$95.86, A$39.89, and A$37.19, respectively. National Australia Bank added 0.9% to A$39.30.
Shares of mining companies closed mixed. BHP Billiton declined 0.4% to A$3111 and Rio Tinto decreased 0.9% to A$56.83. Iron-ore miner Fortescue Metals Group gained 1.5% to A$2.04 after the iron ore spot price rose 2% overnight. Fellow iron ore miner Arrium was up 2.3% to A$0.215. BC Iron was up 2.4% to A$0.42 after signing a new mining contract at its Nullagine joint venture in Western Australia.
Shares of energy companies traded mixed as New York crude-oil futures advanced but rival Brent futures fell. Oil Search dropped 1% to A$7.60, Santos 0.7% to A$7.34 and Woodside Petroleum 0.9% to A$35.10, while Origin Energy rose 0.3% to A$11.77.
Crop protection group Nufarm tumbled 2.6% to A$6.76 despite reporting a 23% jump in first-half profit to A$23.2 million and a 25% hike to its dividend.
China market falls for the first time in eleven sessions
Mainland China share market declined, registering first drop in eleven sessions in row, as profit booking triggered following solid recent gains. The Shanghai Composite Index closed down 30.68 points, or 0.83%, to 3660.73. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, fell 32.64 points, or 0.82%, to 3940.41.
China's benchmark indexes have climbed some 55% since the central bank unexpectedly cut interest rates in November to support the slowing economy. Expectations for more easing have added fuel to the rally.
Shares of financial companies suffered heavy losses in Beijing, after the Agricultural Bank of China fell 2.4% to 3.64 yuan after reporting a 4% dip in profit to 27 billion yuan for the quarter ended December 2014 and a spike in bad loans as manufacturers and retailers struggled to repay debt.
Utilities stocks were also down, with Huaneng Power International Inc leading downfall, with 2.9% losses at A$8.16, after the company reported annual net income of 10.8 billion yuan versus the estimate of 12.3 billion yuan.
Tianjin Port Co surged 4.3% to 21.80 yuan and Xiamen Dazhou Xingye Resources Holdings Co added 9.3% to 13.06 yuan, on media report that the Politburo approved plans for free-trade zones in Guangdong, Tianjin and Fujian.
The Asian Development Bank expects China's economic growth to moderate to 7.2% this year and 7% in 2016 as the Chinese government pursues a program of structural reforms and slower rate. The projection was higher than the official growth target of around 7% set by the central government earlier this month at the annual session of the National People's Congress.
Hong Kong market rises 0.53%
Hong Kong stock market closed higher, defying the softer performance of overseas markets, amid hopes for policy stimulus from Beijing in times of weaker manufacturing growth. The Hang Seng Index advanced 128.63 points, or 0.53%, to close at 24528.23, off an intra-day high of 24613.69 and intra-day low of 24377.92. Turnover decreased to HK$83.58 billion from HK$89.74 billion on Tuesday.
Hong Kong listed Chinese banks were mostly down, with Agricultural Bank of China down 1.1% to HK$3.76 after the bank reported its 2014 net profit increased by a less-than-expected 8%. Bank of China fell 0.2% to HK$4.40 ahead of its earnings results slated for later in the day. China Minsheng Banking Corp slipped 1.2% to HK$9.13, China Citic Bank Corp 1.2% to HK$5.71 and China Construction Bank Corp 0.2% to HK$6.37. Insurers were also down, with China Life Insurance Co falling 1.5% to HK$32.65 despite posting a 30% jump in its earnings for last year. New China Life Insurance Co slipped 3.3% to HK$42.50.
Shares of BOCHK (02388) jumped 1.7% to HK$27.4 on talks that the bank has started its disposal of Nanyang Commercial Bank, with several potential suitors expressing interests.
Tingyi (00322) dipped 2.2% to HK$16.84 after Credit Suisse lowered its target price to HK$18.5.
Hengan (01044) was up 5.4% to HK$92.25 after earnings report, which triggered a slew of investment houses' upgrades.
Tencent Holdings declined 0.2% to HK$142.70 after reports that Taiwan's Hon Hai Precision Industry Co would partner with Tencent and Chinese auto dealer China Harmony Auto Holding to work on smartcars and electric vehicles.
Dairy product producer China Mengniu Dairy Co decreased 0.3% to HK$35.25 after regional rival Fonterra Co-Operative Group of New Zealand reported a drop in six-month profit.
Hutchison Whampoa gained 2% to HK$105.70, after confirmation of its reported deal to acquire U.K. mobile operator O2 from Spanish telecoms firm Telefonica SA.
Sensex ends day in red
Indian stock market declined for the sixth consecutive session today.The S&P BSE Sensex provisionally closes 50 points lower at 28111.83, while the broader CNX Nifty settles at 8530.80 points, ahead of the derivatives expiry.
Global credit rating agency Standard & Poor's Ratings Services said in articles published today, 25 March 2015, as part of a special report titled "India Credit Spotlight" that India's reform drive and economic momentum could give plenty of growth opportunities to India's top corporates.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 737.86 crore yesterday, 24 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 631.67 crore yesterday, 24 March 2015, as per provisional data.
Caution also prevailed ahead of the monthly derivatives expiry due on Thursday, although broader losses were capped as Sun Pharmaceutical Industries rose after receiving final regulatory approvals for its merger with Ranbaxy Laboratories. Meanwhile, Tata Motors rose 0.9%after its board approved raising of 75 billion rupees through a rights issue. SpiceJet shares closed higher after Delhi high court restrains DGCA from taking any coercive steps against the airline for two weeks with respect to de-registration of its three Boeing B737 aircraft.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.07% to 2042.81. Taiwan's Taiex declined 0.66% to 9667.83. New Zealand NZX50 was down 0.22% to 5857.78. Indonesia's Jakarta Composite index sank 0.75% to 5406.93. Singapore's Straits Times index grew 0.16% at 3418.70. Malaysia's KLCI added 0.3% to 1819.43.
Risk sentiments muted throughout the day amid lingering fears about China's weakening growth as well as renewed speculation of interest rate rises by the US Federal Reserve after recent economic data on the world's two biggest economies. The U.S. government data showed that in February consumer prices rose in for the first time in four months while new home sales climbed to their fastest pace in seven years. That was a good sign for the world's No. 1 economy that nonetheless also raises concerns the Fed could soon raise interest rates.
The reports came after HSBC's preliminary purchasing managers' index showed Chinese manufacturing activity slumped to the lowest in 11-months, signaling further weakness in the second biggest economy.
Among Asian bourses
Nikkei rises 0.2%
Japanese share market has managed to eke out a minimal gain at the close, after fluctuating throughout the day. The Nikkei Stock Average advanced 32.75 points, or 0.17%, to close at 19746.20. The broader Topix index added 4.42 points, or 0.28%, to 1592.01.
Shares of textile makers were the biggest gainers in the Tokyo, with Toray Industries leading with a 2.9% advance to 1,051.5 yen. Polyester manufacturer Teijin Ltd. added 3% to 415 yen.
Shares of blue-chip pharmaceutical companies mixed with Eisai Co. falling 5.4% to 9,050 yen amid profit-taking after the drug maker surged 30% over the past two days. Santen Pharmaceutical Co jumped 7.6% to 9,050 yen after raising its profit forecast and dividend.
Toyo Engineering dropped 15% to 335 yen after saying its wholly-owned Brazilian subsidiary suffered operational difficulties and cost overruns that will result in a loss of 17 billion yen.
Kyushu Electric jumped 3.1% to 1,127 yen after the Nuclear Regulatory Authority said yesterday it'll begin pre-operation inspections at the utility's Sendai No. 1 plant on March 30. The move comes after the local government gave a green light to restarting operations in November.
The Bank of Japan said on Wednesday that Japan's service producer prices rose 3.3% in February for the 20th straight year-on-year rise but the pace of increase decelerated further from an upwardly revised +3.5% in January. Excluding the direct effect of the April sales tax hike, SPPI rose 0.6% on year in February after rising a revised 0.8% in January.
Australia market ekes out a gain
The Australian share market managed to eke out marginal gain in lackluster trade, thanks to gains in blue-chip lenders, retailers and property trusts which helping to offset losses elsewhere. The benchmark S&P/ASX 200 Index advanced 4.20 points, or 0.07%, to 5973.30, its highest level in more than seven years, while the broader All Ordinaries Index grew 2.60 points, or 0.04%, to 5937.10. Market turnover was relatively light, with 1.35 billion shares changing hands worth of A$2.6 billion. Rising stocks outperformed by declining ones, with total of 626 stocks up, while remaining 594 down.
Financial stocks moved higher, with top four lenders leading rally. Commonwealth Bank, Westpac Banking Corp, and ANZ Banking Group all gained 0.8% to A$95.86, A$39.89, and A$37.19, respectively. National Australia Bank added 0.9% to A$39.30.
Shares of mining companies closed mixed. BHP Billiton declined 0.4% to A$3111 and Rio Tinto decreased 0.9% to A$56.83. Iron-ore miner Fortescue Metals Group gained 1.5% to A$2.04 after the iron ore spot price rose 2% overnight. Fellow iron ore miner Arrium was up 2.3% to A$0.215. BC Iron was up 2.4% to A$0.42 after signing a new mining contract at its Nullagine joint venture in Western Australia.
Shares of energy companies traded mixed as New York crude-oil futures advanced but rival Brent futures fell. Oil Search dropped 1% to A$7.60, Santos 0.7% to A$7.34 and Woodside Petroleum 0.9% to A$35.10, while Origin Energy rose 0.3% to A$11.77.
Crop protection group Nufarm tumbled 2.6% to A$6.76 despite reporting a 23% jump in first-half profit to A$23.2 million and a 25% hike to its dividend.
China market falls for the first time in eleven sessions
Mainland China share market declined, registering first drop in eleven sessions in row, as profit booking triggered following solid recent gains. The Shanghai Composite Index closed down 30.68 points, or 0.83%, to 3660.73. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, fell 32.64 points, or 0.82%, to 3940.41.
China's benchmark indexes have climbed some 55% since the central bank unexpectedly cut interest rates in November to support the slowing economy. Expectations for more easing have added fuel to the rally.
Shares of financial companies suffered heavy losses in Beijing, after the Agricultural Bank of China fell 2.4% to 3.64 yuan after reporting a 4% dip in profit to 27 billion yuan for the quarter ended December 2014 and a spike in bad loans as manufacturers and retailers struggled to repay debt.
Utilities stocks were also down, with Huaneng Power International Inc leading downfall, with 2.9% losses at A$8.16, after the company reported annual net income of 10.8 billion yuan versus the estimate of 12.3 billion yuan.
Tianjin Port Co surged 4.3% to 21.80 yuan and Xiamen Dazhou Xingye Resources Holdings Co added 9.3% to 13.06 yuan, on media report that the Politburo approved plans for free-trade zones in Guangdong, Tianjin and Fujian.
The Asian Development Bank expects China's economic growth to moderate to 7.2% this year and 7% in 2016 as the Chinese government pursues a program of structural reforms and slower rate. The projection was higher than the official growth target of around 7% set by the central government earlier this month at the annual session of the National People's Congress.
Hong Kong market rises 0.53%
Hong Kong stock market closed higher, defying the softer performance of overseas markets, amid hopes for policy stimulus from Beijing in times of weaker manufacturing growth. The Hang Seng Index advanced 128.63 points, or 0.53%, to close at 24528.23, off an intra-day high of 24613.69 and intra-day low of 24377.92. Turnover decreased to HK$83.58 billion from HK$89.74 billion on Tuesday.
Hong Kong listed Chinese banks were mostly down, with Agricultural Bank of China down 1.1% to HK$3.76 after the bank reported its 2014 net profit increased by a less-than-expected 8%. Bank of China fell 0.2% to HK$4.40 ahead of its earnings results slated for later in the day. China Minsheng Banking Corp slipped 1.2% to HK$9.13, China Citic Bank Corp 1.2% to HK$5.71 and China Construction Bank Corp 0.2% to HK$6.37. Insurers were also down, with China Life Insurance Co falling 1.5% to HK$32.65 despite posting a 30% jump in its earnings for last year. New China Life Insurance Co slipped 3.3% to HK$42.50.
Shares of BOCHK (02388) jumped 1.7% to HK$27.4 on talks that the bank has started its disposal of Nanyang Commercial Bank, with several potential suitors expressing interests.
Tingyi (00322) dipped 2.2% to HK$16.84 after Credit Suisse lowered its target price to HK$18.5.
Hengan (01044) was up 5.4% to HK$92.25 after earnings report, which triggered a slew of investment houses' upgrades.
Tencent Holdings declined 0.2% to HK$142.70 after reports that Taiwan's Hon Hai Precision Industry Co would partner with Tencent and Chinese auto dealer China Harmony Auto Holding to work on smartcars and electric vehicles.
Dairy product producer China Mengniu Dairy Co decreased 0.3% to HK$35.25 after regional rival Fonterra Co-Operative Group of New Zealand reported a drop in six-month profit.
Hutchison Whampoa gained 2% to HK$105.70, after confirmation of its reported deal to acquire U.K. mobile operator O2 from Spanish telecoms firm Telefonica SA.
Sensex ends day in red
Indian stock market declined for the sixth consecutive session today.The S&P BSE Sensex provisionally closes 50 points lower at 28111.83, while the broader CNX Nifty settles at 8530.80 points, ahead of the derivatives expiry.
Global credit rating agency Standard & Poor's Ratings Services said in articles published today, 25 March 2015, as part of a special report titled "India Credit Spotlight" that India's reform drive and economic momentum could give plenty of growth opportunities to India's top corporates.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 737.86 crore yesterday, 24 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 631.67 crore yesterday, 24 March 2015, as per provisional data.
Caution also prevailed ahead of the monthly derivatives expiry due on Thursday, although broader losses were capped as Sun Pharmaceutical Industries rose after receiving final regulatory approvals for its merger with Ranbaxy Laboratories. Meanwhile, Tata Motors rose 0.9%after its board approved raising of 75 billion rupees through a rights issue. SpiceJet shares closed higher after Delhi high court restrains DGCA from taking any coercive steps against the airline for two weeks with respect to de-registration of its three Boeing B737 aircraft.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.07% to 2042.81. Taiwan's Taiex declined 0.66% to 9667.83. New Zealand NZX50 was down 0.22% to 5857.78. Indonesia's Jakarta Composite index sank 0.75% to 5406.93. Singapore's Straits Times index grew 0.16% at 3418.70. Malaysia's KLCI added 0.3% to 1819.43.
