Asia Pacific share market extended losses on Wednesday, 06 May 2015, on
tracking negative lead from Wall Street bourses overnight after a
surprisingly wide March US trade deficit sparked concerns about economic
growth for the first quarter. Meanwhile, decline was fuelled by
tracking selloff in global sovereign bonds. Further, sentiment was
bruised by heightened concern whether Greece can meet its obligation to
pay about $1.1 billion due to the International Monetary Fund by 12 May
2015. The MSCI Asia Pacific excluding Japan Index decreased 1% to
507.87.
Among Asian bourses
Australia stocks dive to three-month low
The Australian share market stumbled to a three-month low, due to risk-off selloff across the sectors, with shares of big bank and consumer staples being major losers. The benchmark S&P/ASX 200 Index retreated 134.30 points, or 2.3%, to 5692.20 while the broader All Ordinaries Index tanked 125.30 points, or 2.15%, to 5690.90. Market turnover was relatively strong, with 1.9 billion shares changing hands worth of A$6.7 billion.
Financial stocks ended steep lower, in the wake of a less dovish than anticipated statement on Tuesday from the Reserve Bank of Australia, which cut its key cash rate to a new record low 2% but dropped its line that further easing may be appropriate over the period ahead, leading some economists to suggest the easing cycle was ending. Westpac Banking Corp declined 3.7% to A$33.99 and ANZ Banking Group fell 2.7% to A$33.21. National Australia Bank lost 2.7% to A$35.20.
Commonwealth Bank tanked 5.9% to A$82.98 after posting poor profit results.
Commonwealth Bank reported third-quarter profits of about A$2.2 billion, unchanged from the same period last year, amid higher expense growth and pressure on its profit margins.
Shares of mining companies ended lower, with resources giant BHP Billiton extended losses, down by 0.6% to A$32.35 after Standard & Poor's warned of a possible downgrade to the miner's credit rating, and Morningstar cut their assessment of the shares to hold from accumulate. Rio Tinto was down 0.6% to A$59.12. Iron ore miner Fortescue Metals Group rose 4.9% to A$2.58 after another rise in the iron ore price, which gained 2% to $58.70 late on Tuesday.
Supermarket operator Woolworths tumbled 5% to A$28.14 after posting a fall in third-quarter sales and unveiled plans to cut jobs and free up cash for price cuts and store renovations. The results were dragged down by negligible same-store growth at its food and liquor arm, including subdued sales in April, and poor petrol sales. Competitor Wesfarmers shed 0.5% to A$44.35.
China market tumbles extend rout
Mainland China equity market closed down in volatile trade, as concern a flood of new share sales and government measures to curb speculation overshadowed data that showed activity in the services sector growing at its fastest pace this year. The Shanghai Composite Index stumbled 69.44 points, or 1.62%, to finish at 4229.27 points, off an intraday high of 4376.35, adding to a 4.1% loss on Tuesday. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, dropped 43.51 points, or 0.95%, to 4553.3, off an intraday high of 4700.91.
Mainland market rose in early trade after the official Xinhua News Agency statement the nation's bull market isn't over and speculation that the government will do more to support the economy. But, market erased all gains late hour on news that brokerages tightening further margin lending requirements and fears over liquidity crunch as twenty-four companies are scheduled to list on the stock exchanges this week.
Twenty-four companies are scheduled to list on the stock exchanges this week and 2.5 trillion yuan has been frozen in pre-offer subscriptions. Listings are popular with Chinese investors given their almost guaranteed upside. Firms are allowed to jump 44% on their first day, compared to the normal 10% daily ceiling for existing shares.
A general nervousness in the markets was compounded by a report in the Shanghai Securities News stating that brokerages were further tightening margin lending requirements. The move followed repeated warnings from regulators reminding a mainly retail investor base not to overstretch themselves in a heated market fired up by a record 1.8 trillion yuan in margin lending.
Shares of Utilities and industrial sectors suffered heavy losses in mainland market today, on profit booking following sharp rally in previous three months. Datang Power slumped 5%. Huadian Power lost 5.2%. China Railway Group fell 5.8% while China Railway Construction dropped 5.7%.
Financials were higher. China Life Insurance Co., the nation's biggest insurer, jumped 6%, while New China Life Insurance Co. surged 10%.
Hong Kong market ends softer
The Hong Kong stock market closed down for fifth consecutive day in volatile trade, due to an unimpressive lead from Wall Street overnight and negative lead from Mainland A-share markets today. The market reversed an early advance inspired by expectations an interest rate increase in the US will be delayed to later in the year. The Hang Seng Index declined 114.63 points or 0.41% to 27640.91, off an intra-day high of 27570.41 and day low of 28054.68.
Shares of brokerage houses extended losses on worries that the Chinese government might hike the stamp tax for securities trading. Shenyin Wanguo HK lost 0.4%, Citic Securities Co 2.4%, China Galaxy Securities Co 0.3%, First Shanghai Investments 1.3%, and Haitong International Securities Group Co 3.6%.
Shares of casino stocks declined after Moody's Investors Service said that the continued decline in Macau gaming revenue -- a result of China's economic slowdown and the government's anti-corruption campaign -- is credit negative for rated gaming companies. On 4th May 2015, the Gaming Inspection and Coordination Bureau of Macau reported a 38.8% year-on-year decline in gross gaming revenue to MOP19.2 billion in April, the eleventh consecutive month of decline. Galaxy Ent (00027) slipped 2.9% to HK$38.2. Sands China (01928) declined 1.2% to HK$32.75. Melco Crown (06883) retreated 2.9% to HK$52.65.
Sensex, Nifty tumble
As a worldwide sell-off in sovereign bonds deepened, key equity benchmark indices in India slumped today, 6 May 2015. The barometer index, the S&P BSE Sensex, hit 20-week low and the 50-unit Nifty hit 17-week low as these two key benchmark indices extended intraday losses in late trade. The Sensex fell below the psychological 27,000 level. Monthly data showing continuation of slowdown in the Indian service sector in April and increase in crude oil prices also hit investor sentiment adversely. The Sensex was provisionally down 725.26 points or 2.64% at 26,714.88. All the 12 sectoral indices on BSE edged lower. Banking, capital goods and power generation stocks led the decline on the domestic bourses.
Meanwhile, Markit Economics said today, 6 May 2015, that the seasonally adjusted HSBC India Services Business Activity Index declined to a three-month low of 52.4 in April from 53 in March.
The Lok Sabha passed constitution amendment bill for rollout of goods and services tax (GST) today, 6 May 2015.
Foreign portfolio investors sold Indian shares worth a net Rs 756.52 crore yesterday, 5 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 979.19 crore yesterday, 5 May 2015, as per provisional data released by the stock exchanges.
Bharat Heavy Electricals (Bhel) slumped 6.23%. The company said during market hours that it has commissioned the first unit of 82.5 megawatts (MW) at the upcoming Shrinagar Hydro Electric Project (HEP) in Uttarakhand. The greenfield hydro electric project consisting of four units of 82.5 MW each is being set up by Alaknanda Hydro Power Corporation (GVK Group).
ABB India fell 2.41% after the company's order intake fell 6.35% to Rs 1856 crore in Q1 March 2015 over Q1 March 2014. ABB India's net profit rose 5.1% to Rs 54.29 crore on 0.7% fall in total income to Rs 1815.29 crore in Q1 March 2015 over Q1 March 2014. The company announced the results after market hours yesterday, 5 May 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.02% to 9818.20. South Korea's KOSPI lost 1.3% to 2104.58. New Zealand's NZX50 rose 0.39% to 5765.27. Singapore's Straits Times index fell 0.33% at 3459.79. Malaysia's KLCI slipped 0.35% to 1820.97. Indonesia's Jakarta Composite index climbed up 0.48% to 5184.95. Japan market closed for the Constitution Day.
Among Asian bourses
Australia stocks dive to three-month low
The Australian share market stumbled to a three-month low, due to risk-off selloff across the sectors, with shares of big bank and consumer staples being major losers. The benchmark S&P/ASX 200 Index retreated 134.30 points, or 2.3%, to 5692.20 while the broader All Ordinaries Index tanked 125.30 points, or 2.15%, to 5690.90. Market turnover was relatively strong, with 1.9 billion shares changing hands worth of A$6.7 billion.
Financial stocks ended steep lower, in the wake of a less dovish than anticipated statement on Tuesday from the Reserve Bank of Australia, which cut its key cash rate to a new record low 2% but dropped its line that further easing may be appropriate over the period ahead, leading some economists to suggest the easing cycle was ending. Westpac Banking Corp declined 3.7% to A$33.99 and ANZ Banking Group fell 2.7% to A$33.21. National Australia Bank lost 2.7% to A$35.20.
Commonwealth Bank tanked 5.9% to A$82.98 after posting poor profit results.
Commonwealth Bank reported third-quarter profits of about A$2.2 billion, unchanged from the same period last year, amid higher expense growth and pressure on its profit margins.
Shares of mining companies ended lower, with resources giant BHP Billiton extended losses, down by 0.6% to A$32.35 after Standard & Poor's warned of a possible downgrade to the miner's credit rating, and Morningstar cut their assessment of the shares to hold from accumulate. Rio Tinto was down 0.6% to A$59.12. Iron ore miner Fortescue Metals Group rose 4.9% to A$2.58 after another rise in the iron ore price, which gained 2% to $58.70 late on Tuesday.
Supermarket operator Woolworths tumbled 5% to A$28.14 after posting a fall in third-quarter sales and unveiled plans to cut jobs and free up cash for price cuts and store renovations. The results were dragged down by negligible same-store growth at its food and liquor arm, including subdued sales in April, and poor petrol sales. Competitor Wesfarmers shed 0.5% to A$44.35.
China market tumbles extend rout
Mainland China equity market closed down in volatile trade, as concern a flood of new share sales and government measures to curb speculation overshadowed data that showed activity in the services sector growing at its fastest pace this year. The Shanghai Composite Index stumbled 69.44 points, or 1.62%, to finish at 4229.27 points, off an intraday high of 4376.35, adding to a 4.1% loss on Tuesday. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, dropped 43.51 points, or 0.95%, to 4553.3, off an intraday high of 4700.91.
Mainland market rose in early trade after the official Xinhua News Agency statement the nation's bull market isn't over and speculation that the government will do more to support the economy. But, market erased all gains late hour on news that brokerages tightening further margin lending requirements and fears over liquidity crunch as twenty-four companies are scheduled to list on the stock exchanges this week.
Twenty-four companies are scheduled to list on the stock exchanges this week and 2.5 trillion yuan has been frozen in pre-offer subscriptions. Listings are popular with Chinese investors given their almost guaranteed upside. Firms are allowed to jump 44% on their first day, compared to the normal 10% daily ceiling for existing shares.
A general nervousness in the markets was compounded by a report in the Shanghai Securities News stating that brokerages were further tightening margin lending requirements. The move followed repeated warnings from regulators reminding a mainly retail investor base not to overstretch themselves in a heated market fired up by a record 1.8 trillion yuan in margin lending.
Shares of Utilities and industrial sectors suffered heavy losses in mainland market today, on profit booking following sharp rally in previous three months. Datang Power slumped 5%. Huadian Power lost 5.2%. China Railway Group fell 5.8% while China Railway Construction dropped 5.7%.
Financials were higher. China Life Insurance Co., the nation's biggest insurer, jumped 6%, while New China Life Insurance Co. surged 10%.
Hong Kong market ends softer
The Hong Kong stock market closed down for fifth consecutive day in volatile trade, due to an unimpressive lead from Wall Street overnight and negative lead from Mainland A-share markets today. The market reversed an early advance inspired by expectations an interest rate increase in the US will be delayed to later in the year. The Hang Seng Index declined 114.63 points or 0.41% to 27640.91, off an intra-day high of 27570.41 and day low of 28054.68.
Shares of brokerage houses extended losses on worries that the Chinese government might hike the stamp tax for securities trading. Shenyin Wanguo HK lost 0.4%, Citic Securities Co 2.4%, China Galaxy Securities Co 0.3%, First Shanghai Investments 1.3%, and Haitong International Securities Group Co 3.6%.
Shares of casino stocks declined after Moody's Investors Service said that the continued decline in Macau gaming revenue -- a result of China's economic slowdown and the government's anti-corruption campaign -- is credit negative for rated gaming companies. On 4th May 2015, the Gaming Inspection and Coordination Bureau of Macau reported a 38.8% year-on-year decline in gross gaming revenue to MOP19.2 billion in April, the eleventh consecutive month of decline. Galaxy Ent (00027) slipped 2.9% to HK$38.2. Sands China (01928) declined 1.2% to HK$32.75. Melco Crown (06883) retreated 2.9% to HK$52.65.
Sensex, Nifty tumble
As a worldwide sell-off in sovereign bonds deepened, key equity benchmark indices in India slumped today, 6 May 2015. The barometer index, the S&P BSE Sensex, hit 20-week low and the 50-unit Nifty hit 17-week low as these two key benchmark indices extended intraday losses in late trade. The Sensex fell below the psychological 27,000 level. Monthly data showing continuation of slowdown in the Indian service sector in April and increase in crude oil prices also hit investor sentiment adversely. The Sensex was provisionally down 725.26 points or 2.64% at 26,714.88. All the 12 sectoral indices on BSE edged lower. Banking, capital goods and power generation stocks led the decline on the domestic bourses.
Meanwhile, Markit Economics said today, 6 May 2015, that the seasonally adjusted HSBC India Services Business Activity Index declined to a three-month low of 52.4 in April from 53 in March.
The Lok Sabha passed constitution amendment bill for rollout of goods and services tax (GST) today, 6 May 2015.
Foreign portfolio investors sold Indian shares worth a net Rs 756.52 crore yesterday, 5 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 979.19 crore yesterday, 5 May 2015, as per provisional data released by the stock exchanges.
Bharat Heavy Electricals (Bhel) slumped 6.23%. The company said during market hours that it has commissioned the first unit of 82.5 megawatts (MW) at the upcoming Shrinagar Hydro Electric Project (HEP) in Uttarakhand. The greenfield hydro electric project consisting of four units of 82.5 MW each is being set up by Alaknanda Hydro Power Corporation (GVK Group).
ABB India fell 2.41% after the company's order intake fell 6.35% to Rs 1856 crore in Q1 March 2015 over Q1 March 2014. ABB India's net profit rose 5.1% to Rs 54.29 crore on 0.7% fall in total income to Rs 1815.29 crore in Q1 March 2015 over Q1 March 2014. The company announced the results after market hours yesterday, 5 May 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.02% to 9818.20. South Korea's KOSPI lost 1.3% to 2104.58. New Zealand's NZX50 rose 0.39% to 5765.27. Singapore's Straits Times index fell 0.33% at 3459.79. Malaysia's KLCI slipped 0.35% to 1820.97. Indonesia's Jakarta Composite index climbed up 0.48% to 5184.95. Japan market closed for the Constitution Day.
