Headline equities of the Asia Pacific market closed mostly down on
Tuesday, 12 May 2015, on tracking weak lead from Wall Street overnight
and on caution over Greece's future in the euro zone. MSCI's broadest
index of Asia-Pacific shares outside Japan was down 0.3%.
The U.S. stock market closed lower on Monday, as investors fretted about Greece's precarious financial condition and slowing growth in China. The Dow fell 0.5% to 18,105.17. The Standard & Poor's 500 lost 0.5% to 2,105.33. The Nasdaq composite slipped 0.2% to 4,993.57.
Concerns about Greece renewed after the latest talks between Greece and its European creditors failed to reach agreement on bailout terms. In a closely-watched Eurogroup meeting yesterday, 11 May 2015 euro zone finance ministers welcomed progress in negotiations between Greece and its creditors but said more work is needed for a cash-for-reform deal. Greece's finance minister reportedly said that his country's financial situation is "terribly urgent" and the crisis could come to a head in a couple of weeks. Yanis Varoufakis gave the warning after eurozone finance ministers met in Brussels to discuss the final euro 7.2 billion tranche of Greece's euro 240 billion EU/IMF bailout. Earlier, Greece began the transfer of euro 750 million in debt interest to the International Monetary Fund, a day ahead of a payment deadline.
Among Asian bourses
Nikkei closes virtually flat
Japanese share market closed virtually flat after recouping losses late afternoon, helped by yen depreciation against the US dollar and mixed bag of corporate earnings. The benchmark Nikkei 225 index rose marginal 3.93 points, or 0.02%, to finish at 19624.84. The broader Topix index of all first-section shares ended higher 3.94 points, or 0.25%, up at 1602.27.
Total of 19 out of 33 TSE sectors ended higher, with shares of Precision Instruments, Electric Power & Gas, Insurance, Iron & Steel, Marine Transportation, and Textiles & Apparels issues being major gainers. Bucking the uptrend- Rubber Products, Mining, Services, Warehousing & Harbor Transportation Service, Pharmaceutical and Real Estate issues posted modest losses.
Sharp Corp rebounded 10.5% to Y210, after falling 26% yesterday on reports that the company will cut its capital by more than 99% and issue preferred stock.
Bridgestone Corp. fell 3.3% to Y4749.5 after the tire manufacturer reported a 0.5% decline in net profit in the January-March quarter while tipping a 3% fall in profit for the first-half of the year.
Secom Co. lost 5.2% to Y8240 after the Security company projected slower profit growth in the fiscal year ending in March 2016. The company expects a 6.4% increase in net profits, compared with 7.9% growth in the last fiscal year.
Suzuki Motor Corp. rose 7.8% to Y4126.5 after the auto maker projected a 14% increase in net profits for the fiscal year ending in March 2016, a sharp improvement from a 10% fall in the past fiscal year.
Shares of Takata Corp sank 2% to Y1628 as the auto-parts maker continues to face fallout from defective airbags that triggered a series of worldwide auto recalls.
Tsugami Corp. fell 2.4% to Y680 on reports that the industrial machine maker would post a lower profit in the current fiscal year due to a difficult forex environment and falling demand.
Toshiba Corp fell 0.6% to Y400.70, extending its almost 17% plunge in the Monday session after it withdrew its earnings guidance due to accounting issues.
Australia market rebounds on bargain hunting
The Australian share market closed higher for the first time in six consecutive sessions, as investors chased for bottom hunting across the board, on optimism over the federal government's annual budget, due to unveil after the close of trade. The benchmark S&P/ASX 200 Index advanced 49.50 points, or 0.88%, to 5674.70 while the broader All Ordinaries Index added 45.50 points, or 0.81%, to 5673.10. Market turnover was relatively healthy, with 1.98 billion shares changing hands worth of A$6.08 billion.
Shares of materials and resources companies were biggest beneficiaries on the Sydney market today, as investors sensed opportunities among stocks that had been heavily sold off over the past week. Resources giant BHP Billiton added by 2.2% to A$32.53 and Rio Tinto rose by 1.1% to A$59.25. Iron ore miner Fortescue Metals Group closed steady at A$2.57.
Shares in Qantas have jumped 7.2% to A$3.56 after bullish comments from its senior management, which included expectations that its fuel bill this financial year would be A$550 million lower than 2013-14 and A$875 million in benefits would flow from its so-called transformation plan by the end of June.
CSR shares rose 7.7% to A$4.04 after the building products group reported an 82% surge in underlying profit to A$146.5 million on the back of 16% increase in revenue to A$2.02 billion for the year ended March 2015.
Orica shares gained 3.5% to A$20.89, after the explosives maker said its transformation program is on track, which is boosting earnings and reducing net debt by 20%. Orica reaffirmed guidance for global explosives volumes to be between 3.8 million and 4 million metric tons this year, with volumes lower in Australia but higher in the Americas. Operating costs are expected to fall by between A$140 million and A$170 million in 2015 as management implements a restructuring plan expected to cost A$100 million-A$120 million.
China market extends gain after rates cut
Mainland China equity market closed higher for second consecutive session, buoyed by optimism over the central bank's interest rate cut for the third time in six months last Sunday. All the SSE sectors advanced with shares of utilities, tech, industrials, retailers, and consumer goods companies being major gainers. The Shanghai Composite Index advanced 67.64 points, or 1.56%, to finish at 4401.22 points, after jumping 3% yesterday. The CSI300 index increased 56.89 points, or 1.21%, to 4747.42.
All 10 SSE industry groups ended higher, with utilities issue leading rally, with gain of 4.3%, followed by information technology up 3.1%, industrials up 2.9%, consumer discretionary up 1.3%, consumer staples up 1.2%, healthcare up 1.1%, telecommunication services up 1%, materials up 0.6%, financials up 0.4%, and energy up 0.4%.
Nuclear-power stocks and other related shares rallied a day before Chinese securities regulators were due to examine the initial-public-offering application of nuclear-energy giant China National Nuclear Power, which plans to raise 16.25 billion yuan ($2.6 billion). Shanghai Electric Group locked 10% upper circuit at 28.06 yuan and Dongfang Electric Corp added 7.5% to 28.71 yuan.
The China Association of Automobile Manufacturers (CAAM) said on Monday that auto sales in China, the world's largest car market, fell 0.5% year-on-year to 1.99 million vehicles in April. For the first four months of the year, auto sales increased 2.8% on the same period last year to 8.14 million vehicles. China's auto sales reached 23.49 million vehicles last year, jumping 6.9% from 2013.
CHINA overtook the United States as the world's top importer of crude oil for the first time in April, and its purchases are expected to remain strong despite a slowing economy. China's crude oil imports hit a record of almost 7.4 million barrels a day (bpd) last month, putting it ahead of the United States' estimated imports of 7.2 million bpd for April.
Hong Kong market falls on profit booking
The Hong Kong stock market closed lower, as investors taking a breather after the previous two session's rally, with financials, realty, and resources blue-chip stocks being major losers. The benchmark index opened down 54 points and saw its losses widen. The Hang Seng Index fell 311.02 points or 1.12% to 27407.18, off an intra-day high of 27693.63 and day low of 27395.91. Turnover rose slightly to HK$136.42 billion from HK$131 billion on Monday.
Banks and property stocks suffered after posting substantial gains in Monday trade. Bank of China fell 2.1% to HK$5.11, China Citic Bank Corp 1.5% to HK$6.76, Industrial & Commercial Bank of China 1.2% to HK$6.50, and China Construction Bank Corp 1% to HK$7.30.
Real-estate names posted even bigger losses, with Hang Seng constituent China Overseas Land & Investment sank 3.6% to HK$29.50, Evergrande Real Estate Group 6.7% to HK$6.53, and Poly Property Group Co 3.1% to HK$4.72.
Chinese insurers were also lower even though mainland equity markets rebounded. Ping An (02318) softened 0.5% to HK$111.2. China Life (02628) slipped 2% to HK$37.4. China Taiping (00966) slid 3.5% to HK$28.9.
Shares of oil majors were lower as crude prices continued the downward trend. Sinopec (00386) fell 2.3% to HK$6.94. PetroChina (00857) slipped 1.3% to HK$9.4. CNOOC (00883) edged down 0.9% to HK$12.74.
Sensex dives below the psychological 27,000 mark
Indian stock market dropped today as caution prevailed ahead of release of macro-economic data. As per provisional closing, the S&P BSE Sensex was down 647.34 points or 2.35% at 26,859.96. The CNX Nifty was down 198.30 points or 2.38% at 8,126.95.
Index heavyweight Reliance Industries (RIL) declined. Index heavyweight and housing finance major HDFC also fell. Metal and mining stocks dropped. Dr Reddy's Laboratories gained after declaring good Q4 March 2015 result.
Meanwhile, a closely watched forecast by Japan today, 12 May 2015, reportedly confirmed El Nino's return this year. A strong El Nino will roil economies that are heavily dependent on agriculture, particularly India which is already reeling from bad weather.
The Indian government will after market hours today, 12 May 2015 unveil the inflation data based on the consumer price index (CPI) for April 2015 and Index of Industrial Production (IIP) data for March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 169.97 crore yesterday, 11 May 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 328.57 crore yesterday, 11 May 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.2% to 9680.73. South Korea's KOSPI fell 0.03% to 2096.77. New Zealand's NZX50 shed 0.03% to 5746.23. Singapore's Straits Times index slipped 0.8% at 3442.33. Malaysia's KLCI dropped 0.4% to 1798.61. Indonesia's Jakarta Composite index rose 0.6% to 5205.61.
The U.S. stock market closed lower on Monday, as investors fretted about Greece's precarious financial condition and slowing growth in China. The Dow fell 0.5% to 18,105.17. The Standard & Poor's 500 lost 0.5% to 2,105.33. The Nasdaq composite slipped 0.2% to 4,993.57.
Concerns about Greece renewed after the latest talks between Greece and its European creditors failed to reach agreement on bailout terms. In a closely-watched Eurogroup meeting yesterday, 11 May 2015 euro zone finance ministers welcomed progress in negotiations between Greece and its creditors but said more work is needed for a cash-for-reform deal. Greece's finance minister reportedly said that his country's financial situation is "terribly urgent" and the crisis could come to a head in a couple of weeks. Yanis Varoufakis gave the warning after eurozone finance ministers met in Brussels to discuss the final euro 7.2 billion tranche of Greece's euro 240 billion EU/IMF bailout. Earlier, Greece began the transfer of euro 750 million in debt interest to the International Monetary Fund, a day ahead of a payment deadline.
Among Asian bourses
Nikkei closes virtually flat
Japanese share market closed virtually flat after recouping losses late afternoon, helped by yen depreciation against the US dollar and mixed bag of corporate earnings. The benchmark Nikkei 225 index rose marginal 3.93 points, or 0.02%, to finish at 19624.84. The broader Topix index of all first-section shares ended higher 3.94 points, or 0.25%, up at 1602.27.
Total of 19 out of 33 TSE sectors ended higher, with shares of Precision Instruments, Electric Power & Gas, Insurance, Iron & Steel, Marine Transportation, and Textiles & Apparels issues being major gainers. Bucking the uptrend- Rubber Products, Mining, Services, Warehousing & Harbor Transportation Service, Pharmaceutical and Real Estate issues posted modest losses.
Sharp Corp rebounded 10.5% to Y210, after falling 26% yesterday on reports that the company will cut its capital by more than 99% and issue preferred stock.
Bridgestone Corp. fell 3.3% to Y4749.5 after the tire manufacturer reported a 0.5% decline in net profit in the January-March quarter while tipping a 3% fall in profit for the first-half of the year.
Secom Co. lost 5.2% to Y8240 after the Security company projected slower profit growth in the fiscal year ending in March 2016. The company expects a 6.4% increase in net profits, compared with 7.9% growth in the last fiscal year.
Suzuki Motor Corp. rose 7.8% to Y4126.5 after the auto maker projected a 14% increase in net profits for the fiscal year ending in March 2016, a sharp improvement from a 10% fall in the past fiscal year.
Shares of Takata Corp sank 2% to Y1628 as the auto-parts maker continues to face fallout from defective airbags that triggered a series of worldwide auto recalls.
Tsugami Corp. fell 2.4% to Y680 on reports that the industrial machine maker would post a lower profit in the current fiscal year due to a difficult forex environment and falling demand.
Toshiba Corp fell 0.6% to Y400.70, extending its almost 17% plunge in the Monday session after it withdrew its earnings guidance due to accounting issues.
Australia market rebounds on bargain hunting
The Australian share market closed higher for the first time in six consecutive sessions, as investors chased for bottom hunting across the board, on optimism over the federal government's annual budget, due to unveil after the close of trade. The benchmark S&P/ASX 200 Index advanced 49.50 points, or 0.88%, to 5674.70 while the broader All Ordinaries Index added 45.50 points, or 0.81%, to 5673.10. Market turnover was relatively healthy, with 1.98 billion shares changing hands worth of A$6.08 billion.
Shares of materials and resources companies were biggest beneficiaries on the Sydney market today, as investors sensed opportunities among stocks that had been heavily sold off over the past week. Resources giant BHP Billiton added by 2.2% to A$32.53 and Rio Tinto rose by 1.1% to A$59.25. Iron ore miner Fortescue Metals Group closed steady at A$2.57.
Shares in Qantas have jumped 7.2% to A$3.56 after bullish comments from its senior management, which included expectations that its fuel bill this financial year would be A$550 million lower than 2013-14 and A$875 million in benefits would flow from its so-called transformation plan by the end of June.
CSR shares rose 7.7% to A$4.04 after the building products group reported an 82% surge in underlying profit to A$146.5 million on the back of 16% increase in revenue to A$2.02 billion for the year ended March 2015.
Orica shares gained 3.5% to A$20.89, after the explosives maker said its transformation program is on track, which is boosting earnings and reducing net debt by 20%. Orica reaffirmed guidance for global explosives volumes to be between 3.8 million and 4 million metric tons this year, with volumes lower in Australia but higher in the Americas. Operating costs are expected to fall by between A$140 million and A$170 million in 2015 as management implements a restructuring plan expected to cost A$100 million-A$120 million.
China market extends gain after rates cut
Mainland China equity market closed higher for second consecutive session, buoyed by optimism over the central bank's interest rate cut for the third time in six months last Sunday. All the SSE sectors advanced with shares of utilities, tech, industrials, retailers, and consumer goods companies being major gainers. The Shanghai Composite Index advanced 67.64 points, or 1.56%, to finish at 4401.22 points, after jumping 3% yesterday. The CSI300 index increased 56.89 points, or 1.21%, to 4747.42.
All 10 SSE industry groups ended higher, with utilities issue leading rally, with gain of 4.3%, followed by information technology up 3.1%, industrials up 2.9%, consumer discretionary up 1.3%, consumer staples up 1.2%, healthcare up 1.1%, telecommunication services up 1%, materials up 0.6%, financials up 0.4%, and energy up 0.4%.
Nuclear-power stocks and other related shares rallied a day before Chinese securities regulators were due to examine the initial-public-offering application of nuclear-energy giant China National Nuclear Power, which plans to raise 16.25 billion yuan ($2.6 billion). Shanghai Electric Group locked 10% upper circuit at 28.06 yuan and Dongfang Electric Corp added 7.5% to 28.71 yuan.
The China Association of Automobile Manufacturers (CAAM) said on Monday that auto sales in China, the world's largest car market, fell 0.5% year-on-year to 1.99 million vehicles in April. For the first four months of the year, auto sales increased 2.8% on the same period last year to 8.14 million vehicles. China's auto sales reached 23.49 million vehicles last year, jumping 6.9% from 2013.
CHINA overtook the United States as the world's top importer of crude oil for the first time in April, and its purchases are expected to remain strong despite a slowing economy. China's crude oil imports hit a record of almost 7.4 million barrels a day (bpd) last month, putting it ahead of the United States' estimated imports of 7.2 million bpd for April.
Hong Kong market falls on profit booking
The Hong Kong stock market closed lower, as investors taking a breather after the previous two session's rally, with financials, realty, and resources blue-chip stocks being major losers. The benchmark index opened down 54 points and saw its losses widen. The Hang Seng Index fell 311.02 points or 1.12% to 27407.18, off an intra-day high of 27693.63 and day low of 27395.91. Turnover rose slightly to HK$136.42 billion from HK$131 billion on Monday.
Banks and property stocks suffered after posting substantial gains in Monday trade. Bank of China fell 2.1% to HK$5.11, China Citic Bank Corp 1.5% to HK$6.76, Industrial & Commercial Bank of China 1.2% to HK$6.50, and China Construction Bank Corp 1% to HK$7.30.
Real-estate names posted even bigger losses, with Hang Seng constituent China Overseas Land & Investment sank 3.6% to HK$29.50, Evergrande Real Estate Group 6.7% to HK$6.53, and Poly Property Group Co 3.1% to HK$4.72.
Chinese insurers were also lower even though mainland equity markets rebounded. Ping An (02318) softened 0.5% to HK$111.2. China Life (02628) slipped 2% to HK$37.4. China Taiping (00966) slid 3.5% to HK$28.9.
Shares of oil majors were lower as crude prices continued the downward trend. Sinopec (00386) fell 2.3% to HK$6.94. PetroChina (00857) slipped 1.3% to HK$9.4. CNOOC (00883) edged down 0.9% to HK$12.74.
Sensex dives below the psychological 27,000 mark
Indian stock market dropped today as caution prevailed ahead of release of macro-economic data. As per provisional closing, the S&P BSE Sensex was down 647.34 points or 2.35% at 26,859.96. The CNX Nifty was down 198.30 points or 2.38% at 8,126.95.
Index heavyweight Reliance Industries (RIL) declined. Index heavyweight and housing finance major HDFC also fell. Metal and mining stocks dropped. Dr Reddy's Laboratories gained after declaring good Q4 March 2015 result.
Meanwhile, a closely watched forecast by Japan today, 12 May 2015, reportedly confirmed El Nino's return this year. A strong El Nino will roil economies that are heavily dependent on agriculture, particularly India which is already reeling from bad weather.
The Indian government will after market hours today, 12 May 2015 unveil the inflation data based on the consumer price index (CPI) for April 2015 and Index of Industrial Production (IIP) data for March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 169.97 crore yesterday, 11 May 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 328.57 crore yesterday, 11 May 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.2% to 9680.73. South Korea's KOSPI fell 0.03% to 2096.77. New Zealand's NZX50 shed 0.03% to 5746.23. Singapore's Straits Times index slipped 0.8% at 3442.33. Malaysia's KLCI dropped 0.4% to 1798.61. Indonesia's Jakarta Composite index rose 0.6% to 5205.61.
