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.
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.
