Asia Pacific share market extended rout on Thursday, 07 May 2015, on
tracking negative lead from Wall Street overnight on concerns about the
sluggish US economy data showed a slowdown in U.S. job creation.
Sentiments were also bruised by warning from US Federal Reserve chair
Janet Yellen about high stock valuations during a panel discussion with
the head of the International Monetary Fund, Christine Lagarde.
Meanwhile selloff pressure mounted on caution ahead of the US employment report on Friday which will give clues to the strength of the world's largest economy. Risk-off moves could intensify if the US economic situation is deemed weak. Overnight, U.S. markets were spooked by higher bond yields and as investors weighed the ADP Employment Report which showed 169,000 jobs created in April, missing expectations for a rise of 200,000. While the ADP report focuses on the U.S. private sector, it is usually seen as a pre-cursor to the all-important nonfarm payrolls data released by the Bureau of Labor Statistics on Friday.
Among Asian bourses Nikkei closes 1.2% down
Japanese share market finished the session at one-month low, on catching global selloff after being shuttered for the Golden Week holiday since Monday, with export-related stocks being major losers as weak U.S. economic data sent the yen higher. The benchmark Nikkei 225 index retreated 239.64 points, or 1.23%, to finish at 19291.99, the lowest level since 6 April 2015. The broader Topix index of all first-section shares ended down 10.97 points, or 0.69%, up at 1574.64. Exporters stocks were major drag on the Tokyo market, as the greenback slid for a fourth day against the yen. Nissan Motor Corp slumped 1.6% to Y1223, while Toyota Motor Corp fell 1.2% to Y8214. Canon Inc lost 0.9% to Y4250. Shares of civil aviation players also lower on prospects for higher fuel costs. ANA Holdings Inc. tumbled 3.6% to Y320.60. Nintendo was down 2.66% to Y19715 on caution before the videogame giant full-year earnings later in the day.
Renesas Electronics Corp gained 7.1% to Y903 on reports that the company is expected to report a first-ever net profit of more than Y80 billion for the year ended in March. Idemitsu Kosan Co. rose 3.8% to Y2428 on reports that the firm is on track for a net profit of around Y50 billion for the fiscal ending in March 2016 as rebounding crude oil prices wipe away a massive inventory valuation loss. Dai-ichi Life Insurance jumped 3.15% to Y2040.5 after the firm boosted its earnings estimates for the year ended in March after the market closed Friday.
Australia All Ordinaries slips 0.8%
The Australian share market closed lower on tracking negative lead from Wall Street overnight and renewed concerns about domestic economic growth after unemployment rate rose to a seasonally adjusted 6.2% in April. All ASX sectors dived into red, with shares of bullion, miner, energy, utilities, realty and consumer goods companies being major losers. The benchmark S&P/ASX 200 Index declined 46.50 points, or 0.82%, to 5645.70 while the broader All Ordinaries Index slipped 46.10 points, or 0.81%, to 5644.80. Market turnover was relatively strong, with 2.3 billion shares changing hands worth of A$6.15 billion.
The Australian Bureau of Statistics said on Thursday that Australia's unemployment rate stood at a seasonally adjusted 6.2% in April, up from 6.1% in March, as the number of people in full-time work dropped sharply. Financial stocks closed mixed following heavy losses yesterday. Westpac Banking Corp declined 0.3% to A$33.90 and ANZ Banking Group fell 0.6% to A$33.01. Commonwealth Bank rebounded 0.2% to A$83.11 after yesterday's 5.9% slump on poor profit results. National Australia Bank ended steady at A$35.2 after announcing plans to shore up its capital base, unveiling a A$5.5 billion rights issue that will help the lender make a clean break from its troubled U.K. business.
Shares of mining companies ended lower, with resources giant BHP Billiton down by 1.4% to A$31.89 after shareholders approved its plans to demerge. Rio Tinto was down 1% to A$58.54. Iron ore miner Fortescue Metals Group was flat at A$2.58. Shares in JB Hi-Fi lifted 1.7% to A$19.25 after the electronics and appliance retailer reaffirmed its full-year guidance and reported strong growth in the March quarter despite continued challenges in New Zealand.
Shanghai Composite extends rout for third day
Mainland China equity market extended rout for third consecutive session on Thursday, 07 May 2015, on lingering concerns of fresh measures by regulators to reduce leverage in stock trading. Risk sentiments were also bruised by liquidity crunch fears amid an increasing supply of new shares. The Shanghai Composite Index stumbled 117.05 points, or 2.772%, to finish at 4112.21 points, off an intraday high of 4213.76, extending losses to 8.2% since May 4. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, dropped 82.44 points, or 1.83%, to 4470.09, off an intraday high of 4546.34. 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. A general nervousness in the markets was compounded by China Securities Finance recommendation controls over margin trading and short selling at a seminar with China Securities Regulatory Commission Assistant Chairman Zhang Yujun, China Business News reported Thursday. 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. 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. Shares of utilities and industrial stocks declined the most in Mainland market on profit booking following strong rally since January. A gauge of utilities jumped 57% and Industrials surged 71% over the past three months through yesterday in Shanghai. China Railway Group slid by the 10% daily limit. China Railway Construction Corp. fell 10%. Huadian Power slid 9%.
Hang Seng ends 1.3% softer
The Hong Kong stock market closed down for sixth session in row on Thursday, 07 May 2015, on tracking weak lead from Wall Street overnight and another rout in Mainland A-share markets today. The Hang Seng Index declined 350.94 points or 1.27% to 27289.97, off an intra-day high of 27604.49 and day low of 27207.288. Turnover was virtually unchanged at HK$161.6 billion. Shares of brokerage houses extended losses as the CSRC tightened regulation on margin lending and margin trading. Chinese securities firms bore the brunt. Haitong Sec (06837) and GF Sec (01776) dipped 2% and 1.7% to HK$24.05 and HK$23.55 respectively. But CGS (06881) bucked the trend, rising 1% to HK$12.26. Yanzhou Coal Mining shares dropped 2.7% to HK$7.11 after J.P. Morgan lowered its target price for the coal miner to HK$6.5 from HK$7.5, and downgraded the stock to "underweight" from "neutral".
The research house said persistently weak coal markets will likely see Yanzhou Coal slipping into losses in FY2015 with its cost-cutting cycle nearing an end. Shares of Heng Fai Enterprises (00185) jumped 45.1% to HK$0.37 after the company said offeror Joy Town Inc. will make an unconditional mandatory cash offer for all the issued shares of the company after the proposed acquisition of 55.02% stake at HK$731 million. The offer price will be HK$0.3305 per share, representing a premium of about 29.61% over the closing price of HK$0.255. Great Wall Motor (02333) declined 2.3% to HK$54.20 in spite the company reported a total production and sales volume for April to 80,419 units and 78,258 units, an increase of 44.7% and 32% from a year earlier. For the first four months of 2015, the accumulated production and sales volume amounted to 301,057 units and 299,111 units, up 23.1% and 21.08% over the same period last year.
Sensex falls to 6-1/2 month low
Indian stock market fell for the third straight session, closing at its lowest level in nearly 6-1/2 months, on continued selling by foreign investors due to worries over retrospective taxes and a delay in passage of Land Acquisition Bill. As per provisional figures, the S&P BSE Sensex was down 145.05 points or 0.54% at 26,572.32. The Nifty was down 39.70 points or 0.49% at 8,057.30.
Weakness in global stocks, higher global crude oil prices and data released by the stock exchanges showing heavy selling of Indian stocks by foreign portfolio investors (FPIs) during the previous trading session weighed on investor sentiment. Steel stocks declined after ArcelorMittal, the world's largest producer of steel, today, 7 May 2015, at the time of announcing Q1 results cut its profit guidance for 2015 due to a more bearish view of the US steel market and the impact of falling iron ore prices on its mining business.
Foreign portfolio investors sold shares worth a net Rs 1699.60 crore yesterday, 6 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1454.97 crore yesterday, 6 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.2% to 9704.11. South Korea's KOSPI lost 0.7% to 2091. New Zealand's NZX50 fell 0.6% to 5729.35. Singapore's Straits Times index fell 0.8% at 3432.78. Malaysia's KLCI slipped 0.9% to 1805.10. Indonesia's Jakarta Composite index lost 0.7% to 5150.49.
Meanwhile selloff pressure mounted on caution ahead of the US employment report on Friday which will give clues to the strength of the world's largest economy. Risk-off moves could intensify if the US economic situation is deemed weak. Overnight, U.S. markets were spooked by higher bond yields and as investors weighed the ADP Employment Report which showed 169,000 jobs created in April, missing expectations for a rise of 200,000. While the ADP report focuses on the U.S. private sector, it is usually seen as a pre-cursor to the all-important nonfarm payrolls data released by the Bureau of Labor Statistics on Friday.
Among Asian bourses Nikkei closes 1.2% down
Japanese share market finished the session at one-month low, on catching global selloff after being shuttered for the Golden Week holiday since Monday, with export-related stocks being major losers as weak U.S. economic data sent the yen higher. The benchmark Nikkei 225 index retreated 239.64 points, or 1.23%, to finish at 19291.99, the lowest level since 6 April 2015. The broader Topix index of all first-section shares ended down 10.97 points, or 0.69%, up at 1574.64. Exporters stocks were major drag on the Tokyo market, as the greenback slid for a fourth day against the yen. Nissan Motor Corp slumped 1.6% to Y1223, while Toyota Motor Corp fell 1.2% to Y8214. Canon Inc lost 0.9% to Y4250. Shares of civil aviation players also lower on prospects for higher fuel costs. ANA Holdings Inc. tumbled 3.6% to Y320.60. Nintendo was down 2.66% to Y19715 on caution before the videogame giant full-year earnings later in the day.
Renesas Electronics Corp gained 7.1% to Y903 on reports that the company is expected to report a first-ever net profit of more than Y80 billion for the year ended in March. Idemitsu Kosan Co. rose 3.8% to Y2428 on reports that the firm is on track for a net profit of around Y50 billion for the fiscal ending in March 2016 as rebounding crude oil prices wipe away a massive inventory valuation loss. Dai-ichi Life Insurance jumped 3.15% to Y2040.5 after the firm boosted its earnings estimates for the year ended in March after the market closed Friday.
Australia All Ordinaries slips 0.8%
The Australian share market closed lower on tracking negative lead from Wall Street overnight and renewed concerns about domestic economic growth after unemployment rate rose to a seasonally adjusted 6.2% in April. All ASX sectors dived into red, with shares of bullion, miner, energy, utilities, realty and consumer goods companies being major losers. The benchmark S&P/ASX 200 Index declined 46.50 points, or 0.82%, to 5645.70 while the broader All Ordinaries Index slipped 46.10 points, or 0.81%, to 5644.80. Market turnover was relatively strong, with 2.3 billion shares changing hands worth of A$6.15 billion.
The Australian Bureau of Statistics said on Thursday that Australia's unemployment rate stood at a seasonally adjusted 6.2% in April, up from 6.1% in March, as the number of people in full-time work dropped sharply. Financial stocks closed mixed following heavy losses yesterday. Westpac Banking Corp declined 0.3% to A$33.90 and ANZ Banking Group fell 0.6% to A$33.01. Commonwealth Bank rebounded 0.2% to A$83.11 after yesterday's 5.9% slump on poor profit results. National Australia Bank ended steady at A$35.2 after announcing plans to shore up its capital base, unveiling a A$5.5 billion rights issue that will help the lender make a clean break from its troubled U.K. business.
Shares of mining companies ended lower, with resources giant BHP Billiton down by 1.4% to A$31.89 after shareholders approved its plans to demerge. Rio Tinto was down 1% to A$58.54. Iron ore miner Fortescue Metals Group was flat at A$2.58. Shares in JB Hi-Fi lifted 1.7% to A$19.25 after the electronics and appliance retailer reaffirmed its full-year guidance and reported strong growth in the March quarter despite continued challenges in New Zealand.
Shanghai Composite extends rout for third day
Mainland China equity market extended rout for third consecutive session on Thursday, 07 May 2015, on lingering concerns of fresh measures by regulators to reduce leverage in stock trading. Risk sentiments were also bruised by liquidity crunch fears amid an increasing supply of new shares. The Shanghai Composite Index stumbled 117.05 points, or 2.772%, to finish at 4112.21 points, off an intraday high of 4213.76, extending losses to 8.2% since May 4. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, dropped 82.44 points, or 1.83%, to 4470.09, off an intraday high of 4546.34. 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. A general nervousness in the markets was compounded by China Securities Finance recommendation controls over margin trading and short selling at a seminar with China Securities Regulatory Commission Assistant Chairman Zhang Yujun, China Business News reported Thursday. 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. 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. Shares of utilities and industrial stocks declined the most in Mainland market on profit booking following strong rally since January. A gauge of utilities jumped 57% and Industrials surged 71% over the past three months through yesterday in Shanghai. China Railway Group slid by the 10% daily limit. China Railway Construction Corp. fell 10%. Huadian Power slid 9%.
Hang Seng ends 1.3% softer
The Hong Kong stock market closed down for sixth session in row on Thursday, 07 May 2015, on tracking weak lead from Wall Street overnight and another rout in Mainland A-share markets today. The Hang Seng Index declined 350.94 points or 1.27% to 27289.97, off an intra-day high of 27604.49 and day low of 27207.288. Turnover was virtually unchanged at HK$161.6 billion. Shares of brokerage houses extended losses as the CSRC tightened regulation on margin lending and margin trading. Chinese securities firms bore the brunt. Haitong Sec (06837) and GF Sec (01776) dipped 2% and 1.7% to HK$24.05 and HK$23.55 respectively. But CGS (06881) bucked the trend, rising 1% to HK$12.26. Yanzhou Coal Mining shares dropped 2.7% to HK$7.11 after J.P. Morgan lowered its target price for the coal miner to HK$6.5 from HK$7.5, and downgraded the stock to "underweight" from "neutral".
The research house said persistently weak coal markets will likely see Yanzhou Coal slipping into losses in FY2015 with its cost-cutting cycle nearing an end. Shares of Heng Fai Enterprises (00185) jumped 45.1% to HK$0.37 after the company said offeror Joy Town Inc. will make an unconditional mandatory cash offer for all the issued shares of the company after the proposed acquisition of 55.02% stake at HK$731 million. The offer price will be HK$0.3305 per share, representing a premium of about 29.61% over the closing price of HK$0.255. Great Wall Motor (02333) declined 2.3% to HK$54.20 in spite the company reported a total production and sales volume for April to 80,419 units and 78,258 units, an increase of 44.7% and 32% from a year earlier. For the first four months of 2015, the accumulated production and sales volume amounted to 301,057 units and 299,111 units, up 23.1% and 21.08% over the same period last year.
Sensex falls to 6-1/2 month low
Indian stock market fell for the third straight session, closing at its lowest level in nearly 6-1/2 months, on continued selling by foreign investors due to worries over retrospective taxes and a delay in passage of Land Acquisition Bill. As per provisional figures, the S&P BSE Sensex was down 145.05 points or 0.54% at 26,572.32. The Nifty was down 39.70 points or 0.49% at 8,057.30.
Weakness in global stocks, higher global crude oil prices and data released by the stock exchanges showing heavy selling of Indian stocks by foreign portfolio investors (FPIs) during the previous trading session weighed on investor sentiment. Steel stocks declined after ArcelorMittal, the world's largest producer of steel, today, 7 May 2015, at the time of announcing Q1 results cut its profit guidance for 2015 due to a more bearish view of the US steel market and the impact of falling iron ore prices on its mining business.
Foreign portfolio investors sold shares worth a net Rs 1699.60 crore yesterday, 6 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1454.97 crore yesterday, 6 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.2% to 9704.11. South Korea's KOSPI lost 0.7% to 2091. New Zealand's NZX50 fell 0.6% to 5729.35. Singapore's Straits Times index fell 0.8% at 3432.78. Malaysia's KLCI slipped 0.9% to 1805.10. Indonesia's Jakarta Composite index lost 0.7% to 5150.49.
