Headline equities of the Asia Pacific market closed softer for second
consecutive session on Tuesday, 10 March 2015, amid mounting fears of an
interest rate hike in the United States. The latest China's inflation
readings also weighed on the regional market, as data showing increased
factory sector deflation hurting pricing power of Chinese firms.
Data released on Tuesday showed that China's consumer inflation quickened to 1.4% in February, beating market expectations and following a 0.8% climb in January. But wholesale prices stayed entrenched in deflation, falling 4.8% in February, after the 4.3% drop in January, underscoring deepening weakness in the economy.
The U.S. Labor Department's report showed that non-farm payroll employment jumped by 295,000 jobs in February against expectations for an increase of about 230,000 jobs. The unemployment rate fell to a six-year low of 5.5%, indicating continued progress in the labour market. The upbeat jobs report caught some investors off-guard and stoked speculation that a rate hike could be in the offing as soon as June.
Among Asian bourses
Bank, healthcare stocks support Australian market
The Australian share market closed marginally above the neutral line after trimming early gain, with shares of tech, telecom, healthcare, industrial and lenders being major gainers, helping to offset decline in consumer goods, retailers, energy, and mining companies. The benchmark S&P/ASX 200 Index advanced by 2.90 points, or 0.05%, to 5824.20 and the broader All Ordinaries Index grew by 1.30 points, or 0.02%, to 5794.30. Market turnover was relatively stable, with 1.79 billion shares changing hands worth of A$4.65 billion. Rising stocks underperformed by declining ones, with total of 592 stocks up, while remaining 717 down.
Shares of top lenders, Telstra and healthcare advanced the most in Sydney, helping to offset losses elsewhere. Commonwealth Bank of Australia was up 0.2% to A$90.68 while Westpac Banking Corporation was up 0.8% to A$37.67. ANZ Banking Group gained 0.4% to A$35.30 and National Australia Bank was up 0.4% to A$35.30. Telstra was up 1% at $6.20. Biotechnology giant CSL was up 1.3% to A$93.52 and Amcor gained 1.6% at A$14.57.
Shares of civil aviation jumped, thanks to drop in crude oil prices which accounts 50-60% of fuel cost. Qantas gained 3.6% to A$2.90 and Virgin Australia Holdings added 2.1% to A$0.49.
Energy stocks were, however, down on tracking drop in crude oil price in the global market. Brent Crude prices closed lower overnight amid concern that the ECB move implied deflationary pressures along with uncertainty after U.S. President Barack Obama issued an executive order declaring OPEC member Venezuela a national security threat. While, geopolitical tensions and the threat of output cuts in Libya and Iraq supported the Brent prices at lower levels. Brent crude for April delivery on London's ICE Futures exchange fell $0.20 to $58.33 a barrel on Monday. Among energy stocks, Australia's biggest oil producer, Woodside Petroleum, was down 0.1% to A$34.89 and Santos was down 2.9% to A$7.33. WorleyParsons was down 3% to A$9.40.
Materials and resources stocks extended decline, with iron-ore price continued to crumble. The spot price for iron ore, landed in China, fell 1.5% to $58.58 a tonne, a lowest price since 2009. Fortescue Metals Group declined 5.6% to A$2.02. ATLAS IRON fell 6.3% to A$0.15, Atlas Iron lost 3% to A$0.16, and BC Iron dropped 7.4% to A$0.375. Diversified senior miners BHP Billiton dropped 0.8% to A$31.91 and Rio Tinto lost 1.1% to A$58.55.
Nikkei declines 0.67% on profit booking
Japanese share market closed down for second straight day, as investors continued taking profit on the market's recent run up to a near 15-year high, with shares of top lenders being major losers. The Nikkei Stock Average was down 125.44 points, or 0.67%, to close at 18665.11, extending a 1% drop in Monday. The broader Topix index decreased 7.01 points, or 0.46%, to 1524.75. The Nikkei 225 closed last week at its highest since 2000, while the Topix closed at a seven-year high.
Shares of banking companies were major drag on the Tokyo market on reports that the Basel Committee on Banking Supervision may ask banks with government debt to put aside a bigger capital cushion. Mitsubishi UFJ fell 3.2% to 755.9 yen and Sumitomo Mitsui Financial Group slid 1.6% to 4699 yen.
Exporters were mixed today even as the currency touched its weakest level against the dollar since 2007. The greenback extended its gains against the yen, hitting at one point Y122.04, its highest since July 20, 2007. Fuji Heavy Industries added 2.3% to 4068 yen. Nikon Corp rose 2.7% to 1701 yen. Toyota Motor Corp slid 0.2% to 8178 yen.
Nippon Paper Industries Co. slumped 4.4% to 1954 yen after SMBC Nikko Securities Inc cut its rating on the stock to underperform from neutral and lowered its price target to 1500 yen from 1850 yen, citing sluggish domestic demand and a weaker yen will reduce its profit outlook.
Laox Co. tumbled 18% to 257 yen as the duty-free store operator announced plans to raise 31.1 billion yen through a share sale to open new stores and refurbish existing ones.
Shares of Yahoo Japan Corp. sank 0.9% to 468 yen on reports that activist fund Starboard Value LP was calling on the U.S. parent Yahoo Inc. to spin off its stake in the Japanese unit.
Shanghai Composite drops 0.49% on profit booking
Mainland China share market ended softer in volatile trade, amid concerns about tighter liquidity as 23 companies will launch IPOs this week, potentially locking 3 trillion yuan of capital from investors subscribing for the new issues. The latest economic readings also weighed on the market, with China's consumer inflation accelerating to 1.4% in February, but not enough to dispel policy makers' worries over possible deflation, as factory prices extended their prolonged fall amid a slowing economy. The Shanghai Composite Index closed down 16.34 points, or 0.49%, to 3286.07. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, declined 17.14 points, or 0.48%, to 3520.61.
Total of seven out of ten SSE industry groups advanced, with healthcare issue leading rally, up 1.2%, followed by consumer discretionary (up 0.7%), information technology (up 0.6%), utilities (up 0.5%) consumer staples (up 0.5%), telecommunication services (up 0.3%), and material (up 0.1%). On the downside, financial issue declined the most, erasing 1.7%, while industrial and energy each fell by 0.5%.
Shares of mainland lenders declined the most in the Beijing amid profit booking after investors had second thoughts about the banking sector's outlook. Bank stocks had jumped 1% Monday following media reports that Beijing is considering granting lenders stock brokering licenses. Bank of Beijing Co. declined 3.9% to 10.38 yuan, China Citic Bank Corp 3% to 6.87 yuan, Industrial & Commercial Bank of China 2.2% to 4.42 yuan and China Construction Bank Corp 2.3% to 5.57 yuan.
Hong Kong stocks down for sixth day
Hong Kong share market declined for sixth consecutive session, amid increasing concerns of the US interest rates hike around midyear. Meanwhile, selloff pressure intensified after data showing China's wholesale deflation worsened in February. The Hang Seng Index ended down 226.07 points or 0.94% to 23896.98, off an intra-day high of 24152.40 and day low of 23869.82. Turnover rose slightly to HK$76.9 billion from HK$76.5 billion on Monday.
Hong Kong-listed mainland Chinese shares retreated, giving back some previous broad gains fuelled by reports that China's regulator might allow commercial banks to enter the brokerage industry. China Minsheng Banking Corp pulled back 2% to HK$8.85, China Merchants Bank Co 1.4% to HK$17.10, and Bank of China bobbled 2.1% lower at A$4.20.
Belle (01880) was the best blue-chip performer, gaining 4.6% to HK$8.61 despite the company reported same-shop sales declined 4% for 4Q (December to February).
Macau gaming sector saw renewed selling pressure after Deutsche Bank and Citi Research issued bearish reports on the industry. Galaxy Ent (00027) was the top blue-chip loser, falling 4.8% to HK$35.1. Sands China (01928) dipped 3.7% to HK$32.4. Wynn Macau slid 6% to HK$17.92 and Melco Crown Entertainment 5.7% to HK$56.50.
Energy stocks stumbled after China reported that the PPI for the first two months of 2015 fell 4.6%, with the factory gate price for oil and gas falling 38%. CNOOC (00883) dipped 2.4% to HK$10.6. Sinopec (00386) fell 1.1% to HK$6.13. PetroChina (00857) edged down 0.8% to HK$8.3.
Sensex falls for the second day in a row
Key benchmark indices edged lower amid high volatility during the latter part of the trading session. The S&P BSE Sensex fell 134.91 points or 0.47% to settle at 28,709.87, its lowest closing level since 11 February 2015. The CNX Nifty fell 44.70 points or 0.51% to settle at 8,712.05, its lowest closing level since 26 February 2015.
Index heavyweight and housing finance major HDFC edged lower. Realty stocks edged lower. Telecom stocks edged higher in choppy trade on buzz the auction of telecom spectrum has reached the final stage.
Meanwhile, Minister of Parliamentary Affairs M.Venkaiah Naidu said in the Lok Sabha yesterday, 9 March 2015, that the government is willing to consider some further amendments to ensure minimum land acquisition based on the views and suggestion of the opposition parties.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 909.72 crore from the secondary equity markets yesterday, 9 March 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore yesterday, 9 March 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI declined 0.4% to 1984.77. Taiwan's Taiex dropped 0.28% to 9536.53. New Zealand NZX50 was down 0.16% to 5887.75. Indonesia's Jakarta Composite index rose 0.34% to 5462.93. Singapore's Straits Times index dropped 0.2% at 3398.26. Malaysia's KLCI sank 0.11% to 1789.73.
Data released on Tuesday showed that China's consumer inflation quickened to 1.4% in February, beating market expectations and following a 0.8% climb in January. But wholesale prices stayed entrenched in deflation, falling 4.8% in February, after the 4.3% drop in January, underscoring deepening weakness in the economy.
The U.S. Labor Department's report showed that non-farm payroll employment jumped by 295,000 jobs in February against expectations for an increase of about 230,000 jobs. The unemployment rate fell to a six-year low of 5.5%, indicating continued progress in the labour market. The upbeat jobs report caught some investors off-guard and stoked speculation that a rate hike could be in the offing as soon as June.
Among Asian bourses
Bank, healthcare stocks support Australian market
The Australian share market closed marginally above the neutral line after trimming early gain, with shares of tech, telecom, healthcare, industrial and lenders being major gainers, helping to offset decline in consumer goods, retailers, energy, and mining companies. The benchmark S&P/ASX 200 Index advanced by 2.90 points, or 0.05%, to 5824.20 and the broader All Ordinaries Index grew by 1.30 points, or 0.02%, to 5794.30. Market turnover was relatively stable, with 1.79 billion shares changing hands worth of A$4.65 billion. Rising stocks underperformed by declining ones, with total of 592 stocks up, while remaining 717 down.
Shares of top lenders, Telstra and healthcare advanced the most in Sydney, helping to offset losses elsewhere. Commonwealth Bank of Australia was up 0.2% to A$90.68 while Westpac Banking Corporation was up 0.8% to A$37.67. ANZ Banking Group gained 0.4% to A$35.30 and National Australia Bank was up 0.4% to A$35.30. Telstra was up 1% at $6.20. Biotechnology giant CSL was up 1.3% to A$93.52 and Amcor gained 1.6% at A$14.57.
Shares of civil aviation jumped, thanks to drop in crude oil prices which accounts 50-60% of fuel cost. Qantas gained 3.6% to A$2.90 and Virgin Australia Holdings added 2.1% to A$0.49.
Energy stocks were, however, down on tracking drop in crude oil price in the global market. Brent Crude prices closed lower overnight amid concern that the ECB move implied deflationary pressures along with uncertainty after U.S. President Barack Obama issued an executive order declaring OPEC member Venezuela a national security threat. While, geopolitical tensions and the threat of output cuts in Libya and Iraq supported the Brent prices at lower levels. Brent crude for April delivery on London's ICE Futures exchange fell $0.20 to $58.33 a barrel on Monday. Among energy stocks, Australia's biggest oil producer, Woodside Petroleum, was down 0.1% to A$34.89 and Santos was down 2.9% to A$7.33. WorleyParsons was down 3% to A$9.40.
Materials and resources stocks extended decline, with iron-ore price continued to crumble. The spot price for iron ore, landed in China, fell 1.5% to $58.58 a tonne, a lowest price since 2009. Fortescue Metals Group declined 5.6% to A$2.02. ATLAS IRON fell 6.3% to A$0.15, Atlas Iron lost 3% to A$0.16, and BC Iron dropped 7.4% to A$0.375. Diversified senior miners BHP Billiton dropped 0.8% to A$31.91 and Rio Tinto lost 1.1% to A$58.55.
Nikkei declines 0.67% on profit booking
Japanese share market closed down for second straight day, as investors continued taking profit on the market's recent run up to a near 15-year high, with shares of top lenders being major losers. The Nikkei Stock Average was down 125.44 points, or 0.67%, to close at 18665.11, extending a 1% drop in Monday. The broader Topix index decreased 7.01 points, or 0.46%, to 1524.75. The Nikkei 225 closed last week at its highest since 2000, while the Topix closed at a seven-year high.
Shares of banking companies were major drag on the Tokyo market on reports that the Basel Committee on Banking Supervision may ask banks with government debt to put aside a bigger capital cushion. Mitsubishi UFJ fell 3.2% to 755.9 yen and Sumitomo Mitsui Financial Group slid 1.6% to 4699 yen.
Exporters were mixed today even as the currency touched its weakest level against the dollar since 2007. The greenback extended its gains against the yen, hitting at one point Y122.04, its highest since July 20, 2007. Fuji Heavy Industries added 2.3% to 4068 yen. Nikon Corp rose 2.7% to 1701 yen. Toyota Motor Corp slid 0.2% to 8178 yen.
Nippon Paper Industries Co. slumped 4.4% to 1954 yen after SMBC Nikko Securities Inc cut its rating on the stock to underperform from neutral and lowered its price target to 1500 yen from 1850 yen, citing sluggish domestic demand and a weaker yen will reduce its profit outlook.
Laox Co. tumbled 18% to 257 yen as the duty-free store operator announced plans to raise 31.1 billion yen through a share sale to open new stores and refurbish existing ones.
Shares of Yahoo Japan Corp. sank 0.9% to 468 yen on reports that activist fund Starboard Value LP was calling on the U.S. parent Yahoo Inc. to spin off its stake in the Japanese unit.
Shanghai Composite drops 0.49% on profit booking
Mainland China share market ended softer in volatile trade, amid concerns about tighter liquidity as 23 companies will launch IPOs this week, potentially locking 3 trillion yuan of capital from investors subscribing for the new issues. The latest economic readings also weighed on the market, with China's consumer inflation accelerating to 1.4% in February, but not enough to dispel policy makers' worries over possible deflation, as factory prices extended their prolonged fall amid a slowing economy. The Shanghai Composite Index closed down 16.34 points, or 0.49%, to 3286.07. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, declined 17.14 points, or 0.48%, to 3520.61.
Total of seven out of ten SSE industry groups advanced, with healthcare issue leading rally, up 1.2%, followed by consumer discretionary (up 0.7%), information technology (up 0.6%), utilities (up 0.5%) consumer staples (up 0.5%), telecommunication services (up 0.3%), and material (up 0.1%). On the downside, financial issue declined the most, erasing 1.7%, while industrial and energy each fell by 0.5%.
Shares of mainland lenders declined the most in the Beijing amid profit booking after investors had second thoughts about the banking sector's outlook. Bank stocks had jumped 1% Monday following media reports that Beijing is considering granting lenders stock brokering licenses. Bank of Beijing Co. declined 3.9% to 10.38 yuan, China Citic Bank Corp 3% to 6.87 yuan, Industrial & Commercial Bank of China 2.2% to 4.42 yuan and China Construction Bank Corp 2.3% to 5.57 yuan.
Hong Kong stocks down for sixth day
Hong Kong share market declined for sixth consecutive session, amid increasing concerns of the US interest rates hike around midyear. Meanwhile, selloff pressure intensified after data showing China's wholesale deflation worsened in February. The Hang Seng Index ended down 226.07 points or 0.94% to 23896.98, off an intra-day high of 24152.40 and day low of 23869.82. Turnover rose slightly to HK$76.9 billion from HK$76.5 billion on Monday.
Hong Kong-listed mainland Chinese shares retreated, giving back some previous broad gains fuelled by reports that China's regulator might allow commercial banks to enter the brokerage industry. China Minsheng Banking Corp pulled back 2% to HK$8.85, China Merchants Bank Co 1.4% to HK$17.10, and Bank of China bobbled 2.1% lower at A$4.20.
Belle (01880) was the best blue-chip performer, gaining 4.6% to HK$8.61 despite the company reported same-shop sales declined 4% for 4Q (December to February).
Macau gaming sector saw renewed selling pressure after Deutsche Bank and Citi Research issued bearish reports on the industry. Galaxy Ent (00027) was the top blue-chip loser, falling 4.8% to HK$35.1. Sands China (01928) dipped 3.7% to HK$32.4. Wynn Macau slid 6% to HK$17.92 and Melco Crown Entertainment 5.7% to HK$56.50.
Energy stocks stumbled after China reported that the PPI for the first two months of 2015 fell 4.6%, with the factory gate price for oil and gas falling 38%. CNOOC (00883) dipped 2.4% to HK$10.6. Sinopec (00386) fell 1.1% to HK$6.13. PetroChina (00857) edged down 0.8% to HK$8.3.
Sensex falls for the second day in a row
Key benchmark indices edged lower amid high volatility during the latter part of the trading session. The S&P BSE Sensex fell 134.91 points or 0.47% to settle at 28,709.87, its lowest closing level since 11 February 2015. The CNX Nifty fell 44.70 points or 0.51% to settle at 8,712.05, its lowest closing level since 26 February 2015.
Index heavyweight and housing finance major HDFC edged lower. Realty stocks edged lower. Telecom stocks edged higher in choppy trade on buzz the auction of telecom spectrum has reached the final stage.
Meanwhile, Minister of Parliamentary Affairs M.Venkaiah Naidu said in the Lok Sabha yesterday, 9 March 2015, that the government is willing to consider some further amendments to ensure minimum land acquisition based on the views and suggestion of the opposition parties.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 909.72 crore from the secondary equity markets yesterday, 9 March 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore yesterday, 9 March 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI declined 0.4% to 1984.77. Taiwan's Taiex dropped 0.28% to 9536.53. New Zealand NZX50 was down 0.16% to 5887.75. Indonesia's Jakarta Composite index rose 0.34% to 5462.93. Singapore's Straits Times index dropped 0.2% at 3398.26. Malaysia's KLCI sank 0.11% to 1789.73.
