Asia Pacific share market closed flat-to-weaker on Tuesday, 24 March
2015, as uninspiring lead from Wall Street overnight and weaker than
expected flash manufacturing PMI data from China and Japan dented risk
sentiments.
US markets closed lower on Monday ahead to a light week of economic reports, amid some consolidation in currency and oil movements. The Dow Jones Industrial Average and S&P 500 turned negative at the close, down 0.1% and 0.2% each. The tech-heavy Nasdaq sagged 0.3%.
Asia's two largest economies saw factory activity expand at a slower pace in March, suggesting that their recovery may be losing momentum. Japan's manufacturing purchasing managers' index by Markit fell to 50.4 on a seasonally-adjusted basis from a final 51.6 figure in February. Any figure above 50 indicates an expansion, while any number below shows contraction
China's manufacturing PMI data painted a picture of further slowdown. The preliminary survey of the China's mammoth factory sector for March surprisingly fell to 49.2, marking an 11-month low, and serving up fresh worries over growth momentum of the world second largest economy. Last month, the final HSBC/Markit PMI climbed to 50.7, the strongest level since July, while the country's official survey remained a whisker below the 50-point level, which separates growth from contraction, at 49.9.
Among Asian bourses
Australia market rises 0.2%
The Australian share market closed slight higher, on the back of gains in blue-chip shares of bullion, mining, realty, drug maker, consumer goods and retailer companies. However, the upside in the market was limited, as the sentiment was dampened by uninspiring Chinese macroeconomic numbers. The benchmark S&P/ASX 200 Index advanced 13 points, or 0.22%, to 5969.10, while the broader All Ordinaries Index grew 13.50 points, or 0.23%, to 5934.50. Market turnover was relatively strong, with 1.65 billion shares changing hands worth of A$4 billion.
Shares of gold miners were stronger in Sydney, thanks to a firmer gold price. Gold futures finished higher on Monday for a fourth session in a row with concerns surrounding Greece's debt problems and a sharp drop in the U.S. dollar providing support for the metal. Gold for April delivery on Comex rose $3.10, or 0.3%, to settle at $1,187.70 an ounce on Comex. Newcrest Mining advanced 2.6% to A$13.75 after Morgan Stanley hiked its price target on the shares by 12%. Evolution Mining gained 3.1% to A$0.8250 and Perseus Mining jumped 5.1% to A$0.31 and
Kathmandu Holdings declined 12.4% to A$1.375 after the outdoor clothing and equipment company reported a 2% fall in same-store sales in the first seven weeks of the new half.
Internet provider TPG rose 3.5% to $9.14 after reporting 18% growth in its six-month profit and raising its outlook on full-year earnings.
Qantas Airways fell 1.6% to A$2.99 on fears regulators could block its planned alliance with China Eastern Airlines Corp.
Coal miner New Hope gained 2.8% to A$2.55 as the company's chief executive rejected suggestions that the coal industry's struggles are permanent and said he wants to make acquisitions this year.
Woodside Petroleum declined 0.3% to A$35.41on reports that the oil and gas producer plans to 300 jobs and freezing pay as it slashes expenditure following a plunge in the oil price.
Profit booking takes toll on Nikkei
Japanese share market registered first drop in three session in row, due to profit booking following a 15-year-high yesterday, weak finish of Wall Street overnight, and US dollar softness against the Japanese yen. Meanwhile, uninspiring China and Japan macroeconomic numbers fuelled selloff. The Nikkei Stock Average declined 40.91 points, or 0.21%, to close at 19713.45. The broader Topix index dropped 4.66 points, or 0.29%, to 1587.59.
The preliminary Markit/JMMA manufacturing gauge of Japanese factory output fell to 50.4 in March, down from 51.6 in February. A reading above 50 indicates expansion.
Shares of blue-chip exporters were down after the greenback retreated to 119.75 yen, down from 120.14 yen late Monday in Tokyo. Sony Corp declined 1.2% to 3306.50 yen, Seiko Epson Corp 2.1% to 4695 yen, Renesas Electronics Corp 1.5% to 858 yen, Nissan Motor Co 0.7% to 1267.50 yen, and Toyota Motor Corp 0.6% to 8689 yen.
Nintendo Co declined 3% to 17940 yen on profit booking after strong gains recently on the company's first steps toward offering mobile games
Sharp Corp advanced 2% to 254 yen on hopes that Taiwan's Hon Hai Precision Industry Co will go ahead with previously stalled plans to invest in the Japanese electronics company.
Mandom Corp. lost 0.7% to 4520 yen on reports that the men's-beauty-product maker would post a full-year profit gain below its previous forecast.
GS Yuasa slumped 3.1%to 568 yen after cutting its net-income forecast in the fiscal year through March 31 by 23% to 10 billion yen, citing a 2.3 billion yen write-down at a lithium unit as well as weaker sales of automobile lithium-ion batteries.
Seiko Epson slumped 2%to 4695 yen after brokerage house JPMorgan Chase cut its rating from neutral to overweight and lowering price target by 37% to 5100 yen, citing the company faces challenges in expanding its corporate printing business.
China market extends gain for tenth day
Mainland China share market finished volatile session higher, registering tenth straight session of winning streak, the longest winning streak since 1992, as investors were cheered by policy-makers' new measures to push forward a “new normal” of sustainable economic growth. But, market gains were marginal after release of weak Chinese preliminary manufacturing data. The Shanghai Composite Index closed up 3.68 points, or 0.1%, to 3691.41, after erasing intraday loss of as much as 2.4%. The gauge had risen 12% during the 10-day rally, the longest winning streak since May 1992. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, added 0.99 point, or 0.02%, to 3973.05.
Vice Premier Zhang Gaoli said on Sunday that the country will deepen reform to propel entrepreneurship and innovation in order to unleash new vitality in economic growth. He urged more efforts to focus on the “new normal” which refers to the economy shifting from quantity and speed of growth to quality and efficiency. He said China will continue to open the economy wider and create a stable, fair and predictable business environment.
Total of six out of ten SSE industry groups advanced, with information technology issue leading the way, with a gain of 2.3%, followed by telecommunication services (up 1.8%), industrials (1.6%), healthcare (1.6%), materials (1.5%), and consumer discretionary (1.4%). On the downside- Consumer staples declined 1%, energy 1.2%, and financial 1.6%.
Shares of technology and material companies advanced the most in Beijing. Software company Neusoft Corp. surged 10%. Zijin Mining rose 10% daily limit after agreeing to buy a 9.9% stake in Ivanhoe Mines.
Shares of financial and energy players declined, with Shenwan Hongyuan Group Co. sliding 3.4% while Poly Real Estate Group Co declined 3.4%. PetroChina Co. slumped 1.8%. Coal producer China Shenhua Energy Co. losing 1.7% after the preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics fell to an 11-month low.
CITIC Securities Co declined 2.6% to 32.45 yuan. China's largest brokerage posted a 116.2% rise net profit to 11.3 billion yuan in 2014.
Spring Airlines dropped 3.8% to 92.28 yuan. The airline carrier yesterday reported 21% rise in net profit to 884.2 million yuan in 2014, on the back of 12% jump in revenue to 7.3 billion yuan. The increase in profit was mainly thanks to the expansion of the fleet size while the load factor remained over 90%.
Hong Kong market falls 0.4%
Hong Kong stocks ended the session with losses, as risk sentiments hurt by tracking weak finish of Wall Street overnight and weaker-than-expected China's HSBC flash manufacturing PMI data. The Hang Seng Index declined 94.91 points, or 0.39%, to close at 24399.60, off an intra-day high of 24490.15 and intra-day low of 24294.95. Turnover increased slightly to HK$89.74 billion from HK$87.2 billion on Monday.
Shares of property developers extended gain on speculation of unveiling policies from Chinese government to boost the housing market, including allowing first-time home buyers to pay only 20% down payment if they get their loans from public housing funds. China Overseas Land & Investment added 2.8% to HK$23.55. SHK Properties added 0.6% to HK$118.50 and Sino Land grew 1.5% to HK$12.26.
Macau gaming stocks were mixed after Fernando Chui, chief executive of Macau, said the authorities will initialize mid-term review on the gaming industry. Chui also lowered official forecasts of gross gaming revenue to MOP20 billion from MOP27.5 billion previously. Galaxy Ent (00027) edged down 0.3% to HK$35.45. MGM China (02282) inched down 0.4% to HK$14.82. But Sands China (01928), Melco Dev (00200), SJM (00880), Wynn Macau (01128) and Melco Crown (06883) all rose less than 1%.
Henderson Land was up 3.7% to HK$53.4 after reporting a 5% growth in its 2014 earnings and recommended bonus issue.
Tingyi Holding Corp declined 2.9% to HK$17.22 after China's largest food and beverage maker posted 2% slide in net profit to US$400.5 million in 2014, as a slowing economy and fierce competition dragged sales down for the first time in almost two decades. HSBC and Barclays lowered their target prices for the stock post its earnings report.
Sensex, Nifty slips in red
Indian stock market closed the session at over nine-week low amid volatile trading session ahead of expiry of March derivative contracts on Thursday. The 30-share Sensex ended down 30.30 points at 28161.72 and the 50-share Nifty dipped 7.95 points at 8542.95.
Aarti Drugs shares dropped after the company said its two manufacturing facilities received import alert from the US FDA, a development which could impact the company's exports to the US market.
Monnet Ispat and Energy shares rose as media reports suggested Gautam Adani-led Adani Group and Sajjan Jindal-owned JSW Group are vying to buy a majority stake and take management control in Delhi-based Monnet Power. According to media reports, a potential deal for Monnet Power's assets is being valued at more than Rs3100 crore and is likely to be completed in April.
Asian Development Bank (ADB) said in a report released today, 24 March 2015, that it expects India's economic growth to accelerate to 7.8% in the fiscal year ending 31 March 2016, driven by an improved performance in the industry and services sectors, which have benefited from business-friendly structural reforms.
Indian market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month March 2015 series to April 2015 series. The near month March 2015 derivatives contracts expire on Thursday, 26 March 2015.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 417.41 crore yesterday, 23 March 2015, as per provisional data released by the stock exchanges.
Domestic institutional investors (DIIs) bought shares worth a net Rs 403.91 crore yesterday, 23 March 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.23% to 2041.37. Taiwan's Taiex declined 0.27% to 9731.66. New Zealand NZX50 edged down 0.08% to 5870.54. Indonesia's Jakarta Composite index rose 0.2% to 5447.65. Singapore's Straits Times index grew 0.1% at 3413.26. Malaysia's KLCI added 1% to 1814.04.
US markets closed lower on Monday ahead to a light week of economic reports, amid some consolidation in currency and oil movements. The Dow Jones Industrial Average and S&P 500 turned negative at the close, down 0.1% and 0.2% each. The tech-heavy Nasdaq sagged 0.3%.
Asia's two largest economies saw factory activity expand at a slower pace in March, suggesting that their recovery may be losing momentum. Japan's manufacturing purchasing managers' index by Markit fell to 50.4 on a seasonally-adjusted basis from a final 51.6 figure in February. Any figure above 50 indicates an expansion, while any number below shows contraction
China's manufacturing PMI data painted a picture of further slowdown. The preliminary survey of the China's mammoth factory sector for March surprisingly fell to 49.2, marking an 11-month low, and serving up fresh worries over growth momentum of the world second largest economy. Last month, the final HSBC/Markit PMI climbed to 50.7, the strongest level since July, while the country's official survey remained a whisker below the 50-point level, which separates growth from contraction, at 49.9.
Among Asian bourses
Australia market rises 0.2%
The Australian share market closed slight higher, on the back of gains in blue-chip shares of bullion, mining, realty, drug maker, consumer goods and retailer companies. However, the upside in the market was limited, as the sentiment was dampened by uninspiring Chinese macroeconomic numbers. The benchmark S&P/ASX 200 Index advanced 13 points, or 0.22%, to 5969.10, while the broader All Ordinaries Index grew 13.50 points, or 0.23%, to 5934.50. Market turnover was relatively strong, with 1.65 billion shares changing hands worth of A$4 billion.
Shares of gold miners were stronger in Sydney, thanks to a firmer gold price. Gold futures finished higher on Monday for a fourth session in a row with concerns surrounding Greece's debt problems and a sharp drop in the U.S. dollar providing support for the metal. Gold for April delivery on Comex rose $3.10, or 0.3%, to settle at $1,187.70 an ounce on Comex. Newcrest Mining advanced 2.6% to A$13.75 after Morgan Stanley hiked its price target on the shares by 12%. Evolution Mining gained 3.1% to A$0.8250 and Perseus Mining jumped 5.1% to A$0.31 and
Kathmandu Holdings declined 12.4% to A$1.375 after the outdoor clothing and equipment company reported a 2% fall in same-store sales in the first seven weeks of the new half.
Internet provider TPG rose 3.5% to $9.14 after reporting 18% growth in its six-month profit and raising its outlook on full-year earnings.
Qantas Airways fell 1.6% to A$2.99 on fears regulators could block its planned alliance with China Eastern Airlines Corp.
Coal miner New Hope gained 2.8% to A$2.55 as the company's chief executive rejected suggestions that the coal industry's struggles are permanent and said he wants to make acquisitions this year.
Woodside Petroleum declined 0.3% to A$35.41on reports that the oil and gas producer plans to 300 jobs and freezing pay as it slashes expenditure following a plunge in the oil price.
Profit booking takes toll on Nikkei
Japanese share market registered first drop in three session in row, due to profit booking following a 15-year-high yesterday, weak finish of Wall Street overnight, and US dollar softness against the Japanese yen. Meanwhile, uninspiring China and Japan macroeconomic numbers fuelled selloff. The Nikkei Stock Average declined 40.91 points, or 0.21%, to close at 19713.45. The broader Topix index dropped 4.66 points, or 0.29%, to 1587.59.
The preliminary Markit/JMMA manufacturing gauge of Japanese factory output fell to 50.4 in March, down from 51.6 in February. A reading above 50 indicates expansion.
Shares of blue-chip exporters were down after the greenback retreated to 119.75 yen, down from 120.14 yen late Monday in Tokyo. Sony Corp declined 1.2% to 3306.50 yen, Seiko Epson Corp 2.1% to 4695 yen, Renesas Electronics Corp 1.5% to 858 yen, Nissan Motor Co 0.7% to 1267.50 yen, and Toyota Motor Corp 0.6% to 8689 yen.
Nintendo Co declined 3% to 17940 yen on profit booking after strong gains recently on the company's first steps toward offering mobile games
Sharp Corp advanced 2% to 254 yen on hopes that Taiwan's Hon Hai Precision Industry Co will go ahead with previously stalled plans to invest in the Japanese electronics company.
Mandom Corp. lost 0.7% to 4520 yen on reports that the men's-beauty-product maker would post a full-year profit gain below its previous forecast.
GS Yuasa slumped 3.1%to 568 yen after cutting its net-income forecast in the fiscal year through March 31 by 23% to 10 billion yen, citing a 2.3 billion yen write-down at a lithium unit as well as weaker sales of automobile lithium-ion batteries.
Seiko Epson slumped 2%to 4695 yen after brokerage house JPMorgan Chase cut its rating from neutral to overweight and lowering price target by 37% to 5100 yen, citing the company faces challenges in expanding its corporate printing business.
China market extends gain for tenth day
Mainland China share market finished volatile session higher, registering tenth straight session of winning streak, the longest winning streak since 1992, as investors were cheered by policy-makers' new measures to push forward a “new normal” of sustainable economic growth. But, market gains were marginal after release of weak Chinese preliminary manufacturing data. The Shanghai Composite Index closed up 3.68 points, or 0.1%, to 3691.41, after erasing intraday loss of as much as 2.4%. The gauge had risen 12% during the 10-day rally, the longest winning streak since May 1992. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, added 0.99 point, or 0.02%, to 3973.05.
Vice Premier Zhang Gaoli said on Sunday that the country will deepen reform to propel entrepreneurship and innovation in order to unleash new vitality in economic growth. He urged more efforts to focus on the “new normal” which refers to the economy shifting from quantity and speed of growth to quality and efficiency. He said China will continue to open the economy wider and create a stable, fair and predictable business environment.
Total of six out of ten SSE industry groups advanced, with information technology issue leading the way, with a gain of 2.3%, followed by telecommunication services (up 1.8%), industrials (1.6%), healthcare (1.6%), materials (1.5%), and consumer discretionary (1.4%). On the downside- Consumer staples declined 1%, energy 1.2%, and financial 1.6%.
Shares of technology and material companies advanced the most in Beijing. Software company Neusoft Corp. surged 10%. Zijin Mining rose 10% daily limit after agreeing to buy a 9.9% stake in Ivanhoe Mines.
Shares of financial and energy players declined, with Shenwan Hongyuan Group Co. sliding 3.4% while Poly Real Estate Group Co declined 3.4%. PetroChina Co. slumped 1.8%. Coal producer China Shenhua Energy Co. losing 1.7% after the preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics fell to an 11-month low.
CITIC Securities Co declined 2.6% to 32.45 yuan. China's largest brokerage posted a 116.2% rise net profit to 11.3 billion yuan in 2014.
Spring Airlines dropped 3.8% to 92.28 yuan. The airline carrier yesterday reported 21% rise in net profit to 884.2 million yuan in 2014, on the back of 12% jump in revenue to 7.3 billion yuan. The increase in profit was mainly thanks to the expansion of the fleet size while the load factor remained over 90%.
Hong Kong market falls 0.4%
Hong Kong stocks ended the session with losses, as risk sentiments hurt by tracking weak finish of Wall Street overnight and weaker-than-expected China's HSBC flash manufacturing PMI data. The Hang Seng Index declined 94.91 points, or 0.39%, to close at 24399.60, off an intra-day high of 24490.15 and intra-day low of 24294.95. Turnover increased slightly to HK$89.74 billion from HK$87.2 billion on Monday.
Shares of property developers extended gain on speculation of unveiling policies from Chinese government to boost the housing market, including allowing first-time home buyers to pay only 20% down payment if they get their loans from public housing funds. China Overseas Land & Investment added 2.8% to HK$23.55. SHK Properties added 0.6% to HK$118.50 and Sino Land grew 1.5% to HK$12.26.
Macau gaming stocks were mixed after Fernando Chui, chief executive of Macau, said the authorities will initialize mid-term review on the gaming industry. Chui also lowered official forecasts of gross gaming revenue to MOP20 billion from MOP27.5 billion previously. Galaxy Ent (00027) edged down 0.3% to HK$35.45. MGM China (02282) inched down 0.4% to HK$14.82. But Sands China (01928), Melco Dev (00200), SJM (00880), Wynn Macau (01128) and Melco Crown (06883) all rose less than 1%.
Henderson Land was up 3.7% to HK$53.4 after reporting a 5% growth in its 2014 earnings and recommended bonus issue.
Tingyi Holding Corp declined 2.9% to HK$17.22 after China's largest food and beverage maker posted 2% slide in net profit to US$400.5 million in 2014, as a slowing economy and fierce competition dragged sales down for the first time in almost two decades. HSBC and Barclays lowered their target prices for the stock post its earnings report.
Sensex, Nifty slips in red
Indian stock market closed the session at over nine-week low amid volatile trading session ahead of expiry of March derivative contracts on Thursday. The 30-share Sensex ended down 30.30 points at 28161.72 and the 50-share Nifty dipped 7.95 points at 8542.95.
Aarti Drugs shares dropped after the company said its two manufacturing facilities received import alert from the US FDA, a development which could impact the company's exports to the US market.
Monnet Ispat and Energy shares rose as media reports suggested Gautam Adani-led Adani Group and Sajjan Jindal-owned JSW Group are vying to buy a majority stake and take management control in Delhi-based Monnet Power. According to media reports, a potential deal for Monnet Power's assets is being valued at more than Rs3100 crore and is likely to be completed in April.
Asian Development Bank (ADB) said in a report released today, 24 March 2015, that it expects India's economic growth to accelerate to 7.8% in the fiscal year ending 31 March 2016, driven by an improved performance in the industry and services sectors, which have benefited from business-friendly structural reforms.
Indian market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month March 2015 series to April 2015 series. The near month March 2015 derivatives contracts expire on Thursday, 26 March 2015.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 417.41 crore yesterday, 23 March 2015, as per provisional data released by the stock exchanges.
Domestic institutional investors (DIIs) bought shares worth a net Rs 403.91 crore yesterday, 23 March 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.23% to 2041.37. Taiwan's Taiex declined 0.27% to 9731.66. New Zealand NZX50 edged down 0.08% to 5870.54. Indonesia's Jakarta Composite index rose 0.2% to 5447.65. Singapore's Straits Times index grew 0.1% at 3413.26. Malaysia's KLCI added 1% to 1814.04.
