Asia Pacific share market ended down on Wednesday, as investors opted
for a risk aversion mode on caution ahead of the outcome of April's
Federal Reserve's policy meeting later today.
The Federal Market Open Committee (FMOC) meeting, which began on Tuesday, will conclude with the release of a post-meeting statement later in the day. Fed is widely expected to keep policies unchanged after slew of weaker than expected economic data released recently. Investors will be looking for any hints on when it will raise interest rates but expectations now are that they'll stay at record lows until at least September.
Among Asian bourses
Australia market dives 1.9%
The Australian share market declined for second consecutive session, on profit booking across the sectors amid growing doubts over the RBA's interest rate cut next week and as Goldman Sachs warning that the country at risk of losing AAA ratings. All ASX sectors dived into red terrain, with healthcare, banks & financials, property trusts, and materials and resources stocks being major losers. The benchmark S&P/ASX 200 Index declined 109.90 points, or 1.85%, to 5838.60, while the broader All Ordinaries Index retreated 103.30 points, or 1.74%, to 5818.20. Market turnover was relatively strong, with 1.83 billion shares changing hands worth of A$5.93 billion.
US investment bank Goldman Sachs has warned that Australia is at risk of losing its coveted AAA credit rating from credit ratings agency Standard & Poor's due to Australia's "poor fiscal performance". Even a "negative outlook" – a first step to a downgrade – will have consequences, said Goldman Sachs.
Investors were speculating that the recent run of stronger-than-expected domestic economic data and the recovery in the price of iron ore amid a broad rally in commodities could stay the RBA board's hand next Tuesday.
Shares of healthcare sector suffered heavy losses for second day in row in Sydney market, hurt by jump in the Australian dollar, with global blood plasma products maker CSL leading downfall, with loss of 2.9% to A$91, while medical device maker ResMed dropped 1.4% to A$8.02 and hearing aid maker Cochlear sank by 1.9% to A$83.39. Sonic healthcare declined 2.6% to A$20.01and Ansell tanked 4.9% to A$26.10.
Financial stocks were down, with top four lenders being major losers, amid fading chances of rate cuts from the Reserve Bank of Australia. Commonwealth Bank dropped 2.2% to A$90.57, National Australia Bank 2.4% to A$37.46, Westpac Banking Corp 2.6% to A$37.40, and ANZ Banking Group 1.9% to A$34.75.
Shares of mining and energy companies also lower, with resources giant BHP Billiton down 1.2% to A$32.04, while Rio Tinto fell 1.8% to A$57.71. Iron ore miner Fortescue Metals Group tanked 7.4% to A$2.27. . Australia's biggest oil producer Woodside Petroleum declined 1.1% to A$35.19 and Santos fell 0.2% to A$8.28. Oil Search declined 2.2% to A$8.07 and origin Energy shed 2.4% to A$12.76.
China market closes flat
Mainland China equity market ended virtually flat after recouping early losses, as investors reacted to news that commercial banks may be allowed to use local government debt as collateral for liquidity via the People's Bank of China's Pledged Supplementary Lending (PSL) scheme. The Shanghai Composite Index edged up 0.41 point, or 0.01%, to 4476.62 points. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, added 32.47 points, or 0.68%, to 4774.33.
Local media reported on Tuesday that China's central bank is planning to launch a credit-easing program to help restructure trillions of dollars of local-government debt. Chinese banks would be able to swap local government bailout bonds for loans from the central bank under the plan.
Total of six out of ten SSE industry groups advanced, with information technology issue leading the advance, with gain of 4.7%, followed by consumer discretionary up 2.7%, consumer staples up 2.1%, materials up 2%, telecommunication services up 1.9%, and healthcare up 1.7%. On the downside, industrial and utilities issues each declined by 0.3%, while energy and financial both lost by 0.2%.
Shares of Agricultural Bank of China declined 2.2% to CNY4.02 after China's third-largest listed lender said yesterday that net profit rose 1.3% in the first quarter of 2015, missing analyst estimates. Agricultural Bank of China net profit rose 1.3% to CNY54116 million for the first quarter of 2015. Operating income amounted to CNY140643 million, an increase of 2.9% from a year earlier. Net interest income amounted to CNY109442 million, representing an increase of 6.11%.
Industrial & Commercial Bank of China (ICBC) declined 2% to CNY5.53. The lender reported that its net profit rose 1.39% to CNY74324 million for the first quarter of 2015. Operating income was CNY165,808 million, an increase of 5.7% from a year earlier. Net interest income was CNY125283 million, an increase of 8.17% compared with the same period of last year.
China Life declined 2.4% to CNY38.65. The insurer reported that its net profit rose 69.8% year-on-year to CNY12271 million for the three months ended 31 March 2015. Operating income amounted to CNY192620 million, an increase of 24.9% from a year earlier.
Premiums earned was CNY150310 million, an increase of 16.5%. Investment income grew 58.8% to CNY38386 million.
Hang Seng ends 0.15% lower
The Hong Kong stock market ended down in lackluster trade, on tracking downbeat cues from regional bourses and on caution ahead of the Federal Open Market Committee policy meeting statement later today. The Hang Seng Index ended down 42.41 points or 0.15% to 28400.34, off an intra-day high of 28453.10 and day low of 28201.76. Turnover decreased to HK$163 billion from HK$170.61 billion on Tuesday.
Shares of HSBC (00005) gained 1.4% to HK$77.45 ahead of its earnings report tomorrow. A Swiss newspaper reported that the bank would cut 260 posts in its global private banking division in Geneva. StanChart (02888) dipped 1% to HK$128.9 after it reported 1Q pre-tax profit slid 22%.
Property developers ended higher. Henderson Land (00012) put on 1% to HK$61.25 as statistics from the HKEx show its Chairman last week increased his stake in the company by 270,000 shares. New World Dev (00017) gained 2.5% to HK$10.08. SHKP (00016) edged up 0.7% to HK$128.3. Hang Lung PPT (00101) jumped 8% to HK$26.2 as the company is holding shareholders meeting today.
Shares of consumer sector inclined after China State Council announced that China would reduce import tariffs on consumer products. Sa Sa (00178) and Bonjour (00653) fell 4.3% and 6.7% to HK$3.96 and HK$0.7. Chow Tai Fook (01929) slipped 2% to HK$9.65.
Sensex dives 0.6%
Indian stock market ended lower, a day ahead of the April derivatives contract expiry amid a holiday truncated week. The 30-share S&P BSE Sensex provisionally closed 0.62%, or 170.45 points, lower at 27,225.93, while the CNX Nifty shed 0.55%, or 45.85 points, to 8,239.75.
Cement stocks were mostly higher. Ambuja Cements shrugged off weak Q1 March 2015 earnings. Shree Cement dropped after the company reported weak Q3 March 2015 earnings.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options segment from the near month April 2015 series to May 2015 series. The near month April 2015 F&O contracts expire tomorrow, 30 April 2015.
Foreign portfolio investors sold Indian shares worth a net Rs 1532.84 crore yesterday, 28 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1537.08 crore yesterday, 28 April 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.23% to 2142.63. Taiwan's Taiex index lost 1.03% to 9853.83. New Zealand's NZX50 sank 0.5% to 5740.82. Singapore's Straits Times index fell 0.23% at 3487.15. Indonesia's Jakarta Composite index retreated 2.61% to 5105.56. Malaysia's KLCI was down 0.65% to 1842.93.
The Federal Market Open Committee (FMOC) meeting, which began on Tuesday, will conclude with the release of a post-meeting statement later in the day. Fed is widely expected to keep policies unchanged after slew of weaker than expected economic data released recently. Investors will be looking for any hints on when it will raise interest rates but expectations now are that they'll stay at record lows until at least September.
Among Asian bourses
Australia market dives 1.9%
The Australian share market declined for second consecutive session, on profit booking across the sectors amid growing doubts over the RBA's interest rate cut next week and as Goldman Sachs warning that the country at risk of losing AAA ratings. All ASX sectors dived into red terrain, with healthcare, banks & financials, property trusts, and materials and resources stocks being major losers. The benchmark S&P/ASX 200 Index declined 109.90 points, or 1.85%, to 5838.60, while the broader All Ordinaries Index retreated 103.30 points, or 1.74%, to 5818.20. Market turnover was relatively strong, with 1.83 billion shares changing hands worth of A$5.93 billion.
US investment bank Goldman Sachs has warned that Australia is at risk of losing its coveted AAA credit rating from credit ratings agency Standard & Poor's due to Australia's "poor fiscal performance". Even a "negative outlook" – a first step to a downgrade – will have consequences, said Goldman Sachs.
Investors were speculating that the recent run of stronger-than-expected domestic economic data and the recovery in the price of iron ore amid a broad rally in commodities could stay the RBA board's hand next Tuesday.
Shares of healthcare sector suffered heavy losses for second day in row in Sydney market, hurt by jump in the Australian dollar, with global blood plasma products maker CSL leading downfall, with loss of 2.9% to A$91, while medical device maker ResMed dropped 1.4% to A$8.02 and hearing aid maker Cochlear sank by 1.9% to A$83.39. Sonic healthcare declined 2.6% to A$20.01and Ansell tanked 4.9% to A$26.10.
Financial stocks were down, with top four lenders being major losers, amid fading chances of rate cuts from the Reserve Bank of Australia. Commonwealth Bank dropped 2.2% to A$90.57, National Australia Bank 2.4% to A$37.46, Westpac Banking Corp 2.6% to A$37.40, and ANZ Banking Group 1.9% to A$34.75.
Shares of mining and energy companies also lower, with resources giant BHP Billiton down 1.2% to A$32.04, while Rio Tinto fell 1.8% to A$57.71. Iron ore miner Fortescue Metals Group tanked 7.4% to A$2.27. . Australia's biggest oil producer Woodside Petroleum declined 1.1% to A$35.19 and Santos fell 0.2% to A$8.28. Oil Search declined 2.2% to A$8.07 and origin Energy shed 2.4% to A$12.76.
China market closes flat
Mainland China equity market ended virtually flat after recouping early losses, as investors reacted to news that commercial banks may be allowed to use local government debt as collateral for liquidity via the People's Bank of China's Pledged Supplementary Lending (PSL) scheme. The Shanghai Composite Index edged up 0.41 point, or 0.01%, to 4476.62 points. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, added 32.47 points, or 0.68%, to 4774.33.
Local media reported on Tuesday that China's central bank is planning to launch a credit-easing program to help restructure trillions of dollars of local-government debt. Chinese banks would be able to swap local government bailout bonds for loans from the central bank under the plan.
Total of six out of ten SSE industry groups advanced, with information technology issue leading the advance, with gain of 4.7%, followed by consumer discretionary up 2.7%, consumer staples up 2.1%, materials up 2%, telecommunication services up 1.9%, and healthcare up 1.7%. On the downside, industrial and utilities issues each declined by 0.3%, while energy and financial both lost by 0.2%.
Shares of Agricultural Bank of China declined 2.2% to CNY4.02 after China's third-largest listed lender said yesterday that net profit rose 1.3% in the first quarter of 2015, missing analyst estimates. Agricultural Bank of China net profit rose 1.3% to CNY54116 million for the first quarter of 2015. Operating income amounted to CNY140643 million, an increase of 2.9% from a year earlier. Net interest income amounted to CNY109442 million, representing an increase of 6.11%.
Industrial & Commercial Bank of China (ICBC) declined 2% to CNY5.53. The lender reported that its net profit rose 1.39% to CNY74324 million for the first quarter of 2015. Operating income was CNY165,808 million, an increase of 5.7% from a year earlier. Net interest income was CNY125283 million, an increase of 8.17% compared with the same period of last year.
China Life declined 2.4% to CNY38.65. The insurer reported that its net profit rose 69.8% year-on-year to CNY12271 million for the three months ended 31 March 2015. Operating income amounted to CNY192620 million, an increase of 24.9% from a year earlier.
Premiums earned was CNY150310 million, an increase of 16.5%. Investment income grew 58.8% to CNY38386 million.
Hang Seng ends 0.15% lower
The Hong Kong stock market ended down in lackluster trade, on tracking downbeat cues from regional bourses and on caution ahead of the Federal Open Market Committee policy meeting statement later today. The Hang Seng Index ended down 42.41 points or 0.15% to 28400.34, off an intra-day high of 28453.10 and day low of 28201.76. Turnover decreased to HK$163 billion from HK$170.61 billion on Tuesday.
Shares of HSBC (00005) gained 1.4% to HK$77.45 ahead of its earnings report tomorrow. A Swiss newspaper reported that the bank would cut 260 posts in its global private banking division in Geneva. StanChart (02888) dipped 1% to HK$128.9 after it reported 1Q pre-tax profit slid 22%.
Property developers ended higher. Henderson Land (00012) put on 1% to HK$61.25 as statistics from the HKEx show its Chairman last week increased his stake in the company by 270,000 shares. New World Dev (00017) gained 2.5% to HK$10.08. SHKP (00016) edged up 0.7% to HK$128.3. Hang Lung PPT (00101) jumped 8% to HK$26.2 as the company is holding shareholders meeting today.
Shares of consumer sector inclined after China State Council announced that China would reduce import tariffs on consumer products. Sa Sa (00178) and Bonjour (00653) fell 4.3% and 6.7% to HK$3.96 and HK$0.7. Chow Tai Fook (01929) slipped 2% to HK$9.65.
Sensex dives 0.6%
Indian stock market ended lower, a day ahead of the April derivatives contract expiry amid a holiday truncated week. The 30-share S&P BSE Sensex provisionally closed 0.62%, or 170.45 points, lower at 27,225.93, while the CNX Nifty shed 0.55%, or 45.85 points, to 8,239.75.
Cement stocks were mostly higher. Ambuja Cements shrugged off weak Q1 March 2015 earnings. Shree Cement dropped after the company reported weak Q3 March 2015 earnings.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options segment from the near month April 2015 series to May 2015 series. The near month April 2015 F&O contracts expire tomorrow, 30 April 2015.
Foreign portfolio investors sold Indian shares worth a net Rs 1532.84 crore yesterday, 28 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1537.08 crore yesterday, 28 April 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.23% to 2142.63. Taiwan's Taiex index lost 1.03% to 9853.83. New Zealand's NZX50 sank 0.5% to 5740.82. Singapore's Straits Times index fell 0.23% at 3487.15. Indonesia's Jakarta Composite index retreated 2.61% to 5105.56. Malaysia's KLCI was down 0.65% to 1842.93.
