Asia Pacific share market mostly closed down on Wednesday, 27 May 2015,
on renewed concerns about an interest rate hike in the U.S. sooner
rather than later.
Regional bourses commenced trading with back footing after robust U.S. data raised prospects for a U.S. interest rate rise later this year. The improvement in US consumer confidence, home sales and prices, and orders for core industrial goods, highlighted a pick-up in growth in the world's biggest economy after a weak first-quarter. The latest US economic results - along with comments Friday from Federal Reserve chief Janet Yellen that she expects to hike interest rates "at some point this year" - put talk of a rate increase back on the table. The Federal Reserve Bank of Atlanta said on Tuesday that it raised its second-quarter growth forecast for the U.S. economy to 0.8% from 0.7%.
Among Asian bourses
Profit taking weighs on Australia market
The Australian share market declined for the first time in five straight sessions, as profit taking triggered across sectors on following a drop for U.S. markets overnight, with financial, industrial, and resource-related stocks leading retreat. The benchmark S&P/ASX 200 Index declined 48.10 points, or 0.83%, to 5725.30, while the broader All Ordinaries Index fell 46.20 points, or 0.8%, to 5724.20. Market turnover was relatively healthy, with 1.58 billion shares changing hands worth of A$3.72 billion.
Shares of materials and resources companies closed down. Rio Tinto and Fortescue Metals Group both dropped 1.7% to A$57.31 and A$2.36, respectively. BHP Billiton closed 1.6% down at A$29.34. South32 tumbled 2.2% to A$2.25 amid predictions from Macquarie that the Company could hand another $400 million to $500 million back to shareholders in the next two years and maintain its B-grade credit rating.
Banks and financial stocks were also down, with top lenders being top losers, amid worries the stocks are overvalued as earnings growth slows and capital requirements tighten. Commonwealth Bank of Australia declined 0.6% to A$84.13, ANZ Banking Group 0.5% to A$32.52, Westpac Banking Corp 1.3% to A$33.20, and National Australia Bank 1.3% to A$33.56.
McGuigan wines owner Australian Vintage fell 5% to A$0.38 after warning of 10% drop in full year (2014-15) profit from A$10.5 million it made last financial year, because it has not produced as many grapes as expected. The company said grape yields from its vineyards have been disappointing. The amount of grapes crushed for the 2015 vintage dropped by more than 10,000 tonnes. Australian Vintage crushed 113,771 tonnes of grapes from the 2015 vintage compared to 124,215 tonnes last year.
The Australian Bureau of Statistics said on Wednesday that construction activity dropped by 2.4% to A$48.4 billion in the first quarter ended March 2015 from the fourth quarter of last year, dragged down by an accelerating decline in mining-related investment.
Nikkei holds at 15-years high on weaker yen
Japanese share market closed the session higher, extending its recent gains, on the back of yen depreciation to 123-level against the greenback. But, market gains were limited as weak finish of the main U.S. indexes overnight depressed demand for the top blue chips. The Nikkei Stock Average ended up 0.17%, or 35.10 points, to 20472.58, extending a 15-year high. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.11%, or 1.76 points, to 1661.33.
Shares of currency sensitive exporters mostly higher, on the back of yen depreciation to 122 level against the US dollar. A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated. Shares of Toyota Motor Corp rose 0.5%, Honda Motor Co 0.6%, Isuzu Motors 2% and Fuji Heavy Industries 4.3%. Shares of ANA Holdings Inc gained 0.8% on reports that Airbus, which sells jets to bankrupt budget carrier Skymark Airlines Inc may block a plan for ANA to support its smaller rival, with Airbus reportedly seeking the plan as insufficient to shore up Skymark.
Shanghai Composite approaches 5K level for the first time since 2008
Mainland China share market closed higher in volatile trade, registering seven days of straight rally, as lingering hopes of fresh policy support toward the sector outweighed concerns over fresh flood of new share offerings. The Shanghai Composite Index advanced 30.82 points, or 0.63%, to finish at 4941.71 points, taking its seven-days rally to 15%. The CSI300 index declined 17.49 points, or 0.34%, to 5126.86.
Defence-related firms China Satellite and Sichuan Chengfei Technology Integration surged for a second day after Beijing on Tuesday outlined an ambitious defence strategy. Mining and energy stocks were also higher, with PetroChina Co., the biggest stock in the benchmark index, gaining 2.3%, while Jiangxi Copper Co. jumped 5.1%. Huaneng Power International Inc. paced an advance for utilities, surging 4%. Juneyao Airlines Co. soared 44% on its first day of trading.
Profits of Chinese industrial businesses rose 2.6% year on year to 479.5 billion yuan (US$78.3 billion) in April, according to the National Bureau of Statistics (NBS) data released on Wednesday. The increase reversed the 0.4% dip in March. In the first four months industrial profits shrank by 1.3% to 1.73 trillion yuan, narrowing the 2.7% drop recorded in the first quarter. NBS statistician He Ping attributed the improvements to the growth of industrial production and sales, higher investment returns in industrial businesses and a fall in operating costs.
Hong Kong stocks fall on profit booking
The Hong Kong stock market finished lower, on catching negative lead from Wall Street overnight. The benchmark index opened down 35 points and saw its loss widened afterwards. The Hang Seng Index ended down 168.65 points or 0.6% to 28081.21, off an intra-day high of 28214.66 and day low of 27982.14. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 100.06 points, or 0.68%, to 14701.88 points. Turnover reduced to HK$157.5 billion from HK$200.2 billion on Tuesday.
HK Market heavyweights were mixed. China Mobile declined 0.9%, and Sino-British banking giant HSBC Holdings fell 0.6%. Bourse-operator Hong Kong Exchange & Clearing gave up 1.2% after rallying 5.4% on Tuesday.
Major Property developers traded mostly weaker, as index component China Overseas Land & Investment sagged 1.7%, Poly Property Group Co dropped 1.5%, and Shimao Property Holdings moved down 2.1%.
Financial shares also softened after a strong rally the previous day, as China Everbright slid 2.3%, and Ping An Insurance Group Co traded 1% lower.
Zijin Mining (02899) shot up 16.4% on its plan to raise Rmb10 billion in a non-public A shares issue.
Indian indices witness divergent trend
A divergent trend was witnessed among the two key benchmark indices. The barometer index, the S&P BSE Sensex, was provisionally up 42.63 points or 0.15% to 27,574.04. The 50-unit CNX Nifty was provisionally off 0.85 points or 0.01% at 8,338.50.
Bank stocks edged higher on renewed buying. Index heavyweight and software major Infosys edged lower.
Tomorrow, 28 May 2015, traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire tomorrow, 28 May 2015.
Foreign portfolio investors bought shares worth a net Rs 114.81 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 123.85 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index grew 0.25% to 9693.54. South Korea's KOSPI fell 1.7% to 2107.50. New Zealand's NZX50 sank 0.7% to 5757.94. Singapore's Straits Times index fell 1% to 3424.94. Malaysia's KLCI declined 0.5% to 1755. Indonesia's Jakarta Composite index fell 1.3% to 5253.39.
Regional bourses commenced trading with back footing after robust U.S. data raised prospects for a U.S. interest rate rise later this year. The improvement in US consumer confidence, home sales and prices, and orders for core industrial goods, highlighted a pick-up in growth in the world's biggest economy after a weak first-quarter. The latest US economic results - along with comments Friday from Federal Reserve chief Janet Yellen that she expects to hike interest rates "at some point this year" - put talk of a rate increase back on the table. The Federal Reserve Bank of Atlanta said on Tuesday that it raised its second-quarter growth forecast for the U.S. economy to 0.8% from 0.7%.
Among Asian bourses
Profit taking weighs on Australia market
The Australian share market declined for the first time in five straight sessions, as profit taking triggered across sectors on following a drop for U.S. markets overnight, with financial, industrial, and resource-related stocks leading retreat. The benchmark S&P/ASX 200 Index declined 48.10 points, or 0.83%, to 5725.30, while the broader All Ordinaries Index fell 46.20 points, or 0.8%, to 5724.20. Market turnover was relatively healthy, with 1.58 billion shares changing hands worth of A$3.72 billion.
Shares of materials and resources companies closed down. Rio Tinto and Fortescue Metals Group both dropped 1.7% to A$57.31 and A$2.36, respectively. BHP Billiton closed 1.6% down at A$29.34. South32 tumbled 2.2% to A$2.25 amid predictions from Macquarie that the Company could hand another $400 million to $500 million back to shareholders in the next two years and maintain its B-grade credit rating.
Banks and financial stocks were also down, with top lenders being top losers, amid worries the stocks are overvalued as earnings growth slows and capital requirements tighten. Commonwealth Bank of Australia declined 0.6% to A$84.13, ANZ Banking Group 0.5% to A$32.52, Westpac Banking Corp 1.3% to A$33.20, and National Australia Bank 1.3% to A$33.56.
McGuigan wines owner Australian Vintage fell 5% to A$0.38 after warning of 10% drop in full year (2014-15) profit from A$10.5 million it made last financial year, because it has not produced as many grapes as expected. The company said grape yields from its vineyards have been disappointing. The amount of grapes crushed for the 2015 vintage dropped by more than 10,000 tonnes. Australian Vintage crushed 113,771 tonnes of grapes from the 2015 vintage compared to 124,215 tonnes last year.
The Australian Bureau of Statistics said on Wednesday that construction activity dropped by 2.4% to A$48.4 billion in the first quarter ended March 2015 from the fourth quarter of last year, dragged down by an accelerating decline in mining-related investment.
Nikkei holds at 15-years high on weaker yen
Japanese share market closed the session higher, extending its recent gains, on the back of yen depreciation to 123-level against the greenback. But, market gains were limited as weak finish of the main U.S. indexes overnight depressed demand for the top blue chips. The Nikkei Stock Average ended up 0.17%, or 35.10 points, to 20472.58, extending a 15-year high. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.11%, or 1.76 points, to 1661.33.
Shares of currency sensitive exporters mostly higher, on the back of yen depreciation to 122 level against the US dollar. A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated. Shares of Toyota Motor Corp rose 0.5%, Honda Motor Co 0.6%, Isuzu Motors 2% and Fuji Heavy Industries 4.3%. Shares of ANA Holdings Inc gained 0.8% on reports that Airbus, which sells jets to bankrupt budget carrier Skymark Airlines Inc may block a plan for ANA to support its smaller rival, with Airbus reportedly seeking the plan as insufficient to shore up Skymark.
Shanghai Composite approaches 5K level for the first time since 2008
Mainland China share market closed higher in volatile trade, registering seven days of straight rally, as lingering hopes of fresh policy support toward the sector outweighed concerns over fresh flood of new share offerings. The Shanghai Composite Index advanced 30.82 points, or 0.63%, to finish at 4941.71 points, taking its seven-days rally to 15%. The CSI300 index declined 17.49 points, or 0.34%, to 5126.86.
Defence-related firms China Satellite and Sichuan Chengfei Technology Integration surged for a second day after Beijing on Tuesday outlined an ambitious defence strategy. Mining and energy stocks were also higher, with PetroChina Co., the biggest stock in the benchmark index, gaining 2.3%, while Jiangxi Copper Co. jumped 5.1%. Huaneng Power International Inc. paced an advance for utilities, surging 4%. Juneyao Airlines Co. soared 44% on its first day of trading.
Profits of Chinese industrial businesses rose 2.6% year on year to 479.5 billion yuan (US$78.3 billion) in April, according to the National Bureau of Statistics (NBS) data released on Wednesday. The increase reversed the 0.4% dip in March. In the first four months industrial profits shrank by 1.3% to 1.73 trillion yuan, narrowing the 2.7% drop recorded in the first quarter. NBS statistician He Ping attributed the improvements to the growth of industrial production and sales, higher investment returns in industrial businesses and a fall in operating costs.
Hong Kong stocks fall on profit booking
The Hong Kong stock market finished lower, on catching negative lead from Wall Street overnight. The benchmark index opened down 35 points and saw its loss widened afterwards. The Hang Seng Index ended down 168.65 points or 0.6% to 28081.21, off an intra-day high of 28214.66 and day low of 27982.14. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 100.06 points, or 0.68%, to 14701.88 points. Turnover reduced to HK$157.5 billion from HK$200.2 billion on Tuesday.
HK Market heavyweights were mixed. China Mobile declined 0.9%, and Sino-British banking giant HSBC Holdings fell 0.6%. Bourse-operator Hong Kong Exchange & Clearing gave up 1.2% after rallying 5.4% on Tuesday.
Major Property developers traded mostly weaker, as index component China Overseas Land & Investment sagged 1.7%, Poly Property Group Co dropped 1.5%, and Shimao Property Holdings moved down 2.1%.
Financial shares also softened after a strong rally the previous day, as China Everbright slid 2.3%, and Ping An Insurance Group Co traded 1% lower.
Zijin Mining (02899) shot up 16.4% on its plan to raise Rmb10 billion in a non-public A shares issue.
Indian indices witness divergent trend
A divergent trend was witnessed among the two key benchmark indices. The barometer index, the S&P BSE Sensex, was provisionally up 42.63 points or 0.15% to 27,574.04. The 50-unit CNX Nifty was provisionally off 0.85 points or 0.01% at 8,338.50.
Bank stocks edged higher on renewed buying. Index heavyweight and software major Infosys edged lower.
Tomorrow, 28 May 2015, traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire tomorrow, 28 May 2015.
Foreign portfolio investors bought shares worth a net Rs 114.81 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 123.85 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index grew 0.25% to 9693.54. South Korea's KOSPI fell 1.7% to 2107.50. New Zealand's NZX50 sank 0.7% to 5757.94. Singapore's Straits Times index fell 1% to 3424.94. Malaysia's KLCI declined 0.5% to 1755. Indonesia's Jakarta Composite index fell 1.3% to 5253.39.
