Asia Pacific share market closed mixed on Monday, 01 June 2015, as weak
lead from Wall Street Friday, with bourses of Sydney, Seoul, Taiwan and
Malaysia ending below neutral line, while Japan, China and Hong Kong
bourses closed in green terrain. Financial markets in Singapore,
Thailand and New Zealand were closed on Monday for public holidays.
This week Greece is expected to once again remain in sharp focus ahead of a key debt repayment due to the International Monetary Fund on Friday, 5 June 2015. Greece is still struggling to agree on a reform program with the creditors, which is a prerequisite for receiving the next tranche of bailout money. In an interview with French daily Le Monde on Sunday, 31 May 2015, Greek Prime Minister Alexis Tsipras blamed the creditor institutions for the lack of progress in reaching a reform deal, calling the demands absurd. He also said the lenders displayed a total indifference to the recent democratic choice of the Greek people.
Greece is scheduled to repay a total of euro 1.6 billion ($1.76 billion) to the International Monetary Fund (IMF) over the period between June 5-19.
Manufacturing activity in the eurozone grew more rapidly during May, driven by pickups in Spain and Italy, according to surveys of purchasing managers. Data firm Markit, which surveys more than 3,000 manufacturers across the eurozone, said on Monday that its purchasing managers index rose to 52.2 in May from 52.0 in April. Markit had previously estimated the PMI rose to 52.3. A reading below 50.0 indicates activity is declining, while a reading above that level indicates an increase.
Manufacturing activity in the UK expanded at a slower rate than expected in May, fuelling concerns over the country's economic outlook, industry data showed on Monday. In a report, market research group Markit said that its UK manufacturing PMI inched up to a seasonally adjusted 52 last month from a reading of 51.8 in April. On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
China's official manufacturing purchasing managers index rose to 50.2 in May from 50.1 a month ago, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement. The subindex measuring new orders climbed to 50.6 from 50.2 in April, while the production subindex improved to 52.9 from 52.6, the statement said.
China's official nonmanufacturing PMI, also released on Monday, fell to 53.2 from 53.4 in April.
Separately, the final HSBC China Manufacturing Purchasing Managers Index for showed a reading of 49.2 for May 2015, beating a preliminary reading of 49.1 and rising from 48.9 in April.
Japanese capital investment rose 5.8% from the previous quarter in the January-March period, the finance ministry said Monday, as Prime Minister Shinzo Abe pushes businesses to do their part in revitalizing the economy. Capital investment was up 7.3% compared with where it stood a year earlier, the finance ministry said, the fastest on-year growth in four quarters.
US stocks edged lower during the previous trading session on Friday, 29 May 2015, after a string of weak economic reports. The government reported on Friday that the economy contracted 0.7% in the first quarter. That was worse than its initial estimate of growth of 0.2%.
Also weighing on stocks was a decline in the Chicago Business Barometer, commonly known as the Chicago PMI, a survey of Chicago-area purchasing managers that provides insight into companies' business plans. The Chicago PMI shrank to 46.2 this month from 52.3 in the prior one. By moving below the 50-point threshold, the indicator signals that the economy shrank for the region.
Separately Friday, a reading on consumer sentiment showed US consumer optimism in May was higher than expected but still down sharply from the end-of-April reading. The University of Michigan final May sentiment index came in at 90.7, up from the unexpectedly weak preliminary reading of 88.6. Both May numbers are down sharply from the end-April reading of 95.9. The index reached an 11-year high of 98.1 in January.
Among Asian bourses
Nikkei retains 15-years high level
Japanese share market closed marginally higher after recouping intraday losses, helping the Nikkei Stock Average to extend its winning streak to 12 days. The positive finishing was propelled due to greenback appreciation above the 124-mark against the yen, a highest since Dec. 5, 2002, and after the finance ministry data indicated Japanese capital investment rose 5.8% from the previous quarter in the January-March period. The Nikkei Stock Average rose 6.72 points, or 0.03%, to end at 20569.87, the highest level since April 2000. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.29%, or 4.91 points, to 1678.56.
The Nikkei opened lower and had trouble rising into positive territory until late in the session. A sturdy dollar has helped to keep it above water--but just barely--as the greenback keeps stretching higher against the yen. The dollar was at 124.19 yen, compared with 124.18 yen late Friday in New York. After staying steady above the 124 yen mark most of the session, the greenback briefly broke below that threshold midday, hitting as low as 123.94 yen amid a lack of trading incentives. The dollar rallied last week and at one point hit 124.46 yen, its highest since Dec. 5, 2002.
Shares of cosmetics maker Shiseido rose 2.6% after positive reports on its future growth prospects in Japan, China, and the recovery of its loss-making U.S. unit Bare Escentuals.
Toshiba Corp. added 3.3% after reports that the electronics group may move to restore its dividend, which the company slashed last month amid an internal accounting probe.
Mizuho Financial Group Inc. climbed 1.8% on reports it may boost its cash holdings. Separately, the Nikkei reported Mizuho reached an agreement to sell 230 billion worth of cross-held shares.
Teijin jumped 3.9% after UBS AG upgraded its rating on the fiber maker to buy from neutral. The brokerage also lifted its price target for the manufacturer of polyester products to 550 yen.
Australia market falls on mixed economic data
The Australian share market closed down, due to risk-off selling across the board, with shares of consumer staples, materials, industrials, and financial companies being major losers amid a flurry of mixed economic data. The benchmark S&P/ASX 200 Index dropped 41.80 points, or 0.72%, to 5735.40, while the broader All Ordinaries Index dropped 40.90 points, or 0.7%, to 5734. Market turnover was relatively light, with 1.65 billion shares changing hands worth of A$4.28 billion.
Shares of materials and resources companies closed down after weak domestic building approval figures and soft Chinese manufacturing data. BHP Billiton declined 1.4% at A$29.19 and Rio Tinto lost 1.3% to A$57.42. Fortescue Metals Group dropped 1.7% to A$2.38.
Banks and financial stocks were down, with Commonwealth Bank of Australia falling 0.7% to A$84.48, while Westpac Banking Corp lost 1.3% to A$33.13, National Australia Bank fell 0.8% to A$34.03, and ANZ Banking Group shed 1.4% to A$32.72.
Gross Operating Profit of the Australian companies climbed by 0.2% to a seasonally adjusted A$64.5 billion in the first quarter of 2015 from the fourth quarter of 2014, according to latest data from the Australian Bureau of Statistics. Company profits were down by 7.5% in the first quarter from a year earlier, according to the figures.
Separate data from Australian Bureau of Statistics showed that Approvals to build or renovate houses and apartments declined by 4.4% in April from March. In March, approvals rose by a revised 2.9% from February. Building approvals rose by 16.3% in April from a year earlier, the ABS said. Meanwhile, permits to build houses climbed by 4.7% in April from March, while approvals for apartments, townhouses and other dwellings fell by 15%.
China stocks bounces 4.7%
Mainland China share market zoomed, snapping a two-day losing streak including its second-biggest loss of 2015. The bottom fishing across the board was propelled after a Chinese factory gauge rose for the third month in May and chorus of domestic media commentary asserting the bull market has not yet ended. The Shanghai Composite Index closed 216.99 points, or 4.71%, to finish at 4828.74. The CSI300 index added 35.35 points, or 4.86%, to 5076.18.
The Monday rebound came after the official manufacturing Purchasing Managers' Index (PMI) data showed growth in China's giant factory sector edged up to a six-month high 50.2 in May, compared with 50.1 in April. A separate preliminary gauge from HSBC Holdings Plc and Markit Economics rose to 49.2 from 48.9. The PMI figures, both the official one and the HSBC one, were very close to the consensus view and they can be interpreted as a further normalization in the economy.
Major state-backed newspapers, including the China Securities Journal and the Shanghai Securities News, carried front-page articles saying despite the market tumble on Thursday, the logic behind the bull market - monetary easing and economic restructuring - remain unchanged.
All 10 SSE industry groups ended higher, with utilities issue being top gainer, with rise of 6.9%, followed by energy up 6.5%, information technology up 5.4%, consumer discretionary up 5.1%, consumer staples up 5.1%, telecommunication services up 5%, materials up 5%, healthcare up 4.8%, financials up 4.5%, industrials up 4.5%.
HSI closes 0.6% higher
The Hong Kong stock market finished higher, on catching-up rally in the mainland counterparts, after China's official manufacturing PMI for May came in line with expectations. The benchmark index opened lower, but reversed its trend on the back of A-share rally. The Hang Seng Index ended up 172.97 points or 0.63% to 27597.16, off an intra-day high of 27766.32 and day low of 27241.95. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 195.64 points, or 1.39%, to 14299.45 points. Turnover reduced to HK$164.84 billion from HK$204.8 billion on Friday.
Hong Kong-listed Chinese drug stocks rose, after the central government removed price caps for most medicines starting Monday, in order to allow markets play a larger role. Shanghai Pharmaceuticals Holdings Co. rallied 4.7% and Guangzhou Baiyunshan Pharmaceutical Holdings Co 2.5%.
Shares of realty players were up. Property developer Evergrande Real Estate Group climbed 5.7%, rival China Overseas Land & Investment Ltd. gained 1.8%.
Brokerage firms were down on worries of China's tightening of margin financing. GF SEC (01776) slipped 3%, Haitong Securities Co 1.8% and Citic Securities Co 0.8%.
Shares of casino stocks declined after Macau gaming authorities reported that gross gaming revenues for May fell 37.1%, slightly better than consensus estimates of decline of 38.5%. Galaxy Ent (00027) dipped 4.5% to HK$35.45. Sands China (01928) fell 3.7% to HK$28.85. MGM China (02282) slid 3.7% to HK$13.58.
Newcomer HTSC (06886) closed at HK$26, or 4.8% above its IPO price of HK$24.8, as investors bet China's biggest broker by trading volume would continue to benefit from a boom in the country's stock markets.
Sensex ekes out minuscule gains
A divergent trend was witnessed among the two key benchmark indices, with the barometer index, the S&P BSE Sensex, registering minuscule gains and the 50-unit CNX Nifty ending marginally lower for the day. The Sensex garnered 20.55 points or 0.07% to settle at 27,848.99. The Nifty declined 0.25 points to settle at 8,433.40. A divergent trend was witnessed among various index constituents.
Meanwhile, data released by India's statistics office after trading hours on Friday, 29 May 2015, showed that the Indian economy grew 7.5% in Q4 March 2015, which was much higher than revised GDP growth of 6.6% in Q3 December 2014. Meanwhile, the Union Cabinet on Saturday, 30 May 2015, gave its approval to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2015.
Foreign portfolio investors bought Indian shares worth a net Rs 2273.13 crore from the secondary equity markets during the previous trading session on Friday, 29 May 2015, as per data from the depositories. Domestic institutional investors (DIIs) sold shares worth a net Rs 2267.88 crore on Friday, 29 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.8% to 9625.69. South Korea's KOSPI lost 0.6% to 2102.37. Malaysia's KLCI dropped 0.25% to 1743.41. Indonesia's Jakarta Composite index fell marginal 0.05% to 5213.82.
This week Greece is expected to once again remain in sharp focus ahead of a key debt repayment due to the International Monetary Fund on Friday, 5 June 2015. Greece is still struggling to agree on a reform program with the creditors, which is a prerequisite for receiving the next tranche of bailout money. In an interview with French daily Le Monde on Sunday, 31 May 2015, Greek Prime Minister Alexis Tsipras blamed the creditor institutions for the lack of progress in reaching a reform deal, calling the demands absurd. He also said the lenders displayed a total indifference to the recent democratic choice of the Greek people.
Greece is scheduled to repay a total of euro 1.6 billion ($1.76 billion) to the International Monetary Fund (IMF) over the period between June 5-19.
Manufacturing activity in the eurozone grew more rapidly during May, driven by pickups in Spain and Italy, according to surveys of purchasing managers. Data firm Markit, which surveys more than 3,000 manufacturers across the eurozone, said on Monday that its purchasing managers index rose to 52.2 in May from 52.0 in April. Markit had previously estimated the PMI rose to 52.3. A reading below 50.0 indicates activity is declining, while a reading above that level indicates an increase.
Manufacturing activity in the UK expanded at a slower rate than expected in May, fuelling concerns over the country's economic outlook, industry data showed on Monday. In a report, market research group Markit said that its UK manufacturing PMI inched up to a seasonally adjusted 52 last month from a reading of 51.8 in April. On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
China's official manufacturing purchasing managers index rose to 50.2 in May from 50.1 a month ago, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement. The subindex measuring new orders climbed to 50.6 from 50.2 in April, while the production subindex improved to 52.9 from 52.6, the statement said.
China's official nonmanufacturing PMI, also released on Monday, fell to 53.2 from 53.4 in April.
Separately, the final HSBC China Manufacturing Purchasing Managers Index for showed a reading of 49.2 for May 2015, beating a preliminary reading of 49.1 and rising from 48.9 in April.
Japanese capital investment rose 5.8% from the previous quarter in the January-March period, the finance ministry said Monday, as Prime Minister Shinzo Abe pushes businesses to do their part in revitalizing the economy. Capital investment was up 7.3% compared with where it stood a year earlier, the finance ministry said, the fastest on-year growth in four quarters.
US stocks edged lower during the previous trading session on Friday, 29 May 2015, after a string of weak economic reports. The government reported on Friday that the economy contracted 0.7% in the first quarter. That was worse than its initial estimate of growth of 0.2%.
Also weighing on stocks was a decline in the Chicago Business Barometer, commonly known as the Chicago PMI, a survey of Chicago-area purchasing managers that provides insight into companies' business plans. The Chicago PMI shrank to 46.2 this month from 52.3 in the prior one. By moving below the 50-point threshold, the indicator signals that the economy shrank for the region.
Separately Friday, a reading on consumer sentiment showed US consumer optimism in May was higher than expected but still down sharply from the end-of-April reading. The University of Michigan final May sentiment index came in at 90.7, up from the unexpectedly weak preliminary reading of 88.6. Both May numbers are down sharply from the end-April reading of 95.9. The index reached an 11-year high of 98.1 in January.
Among Asian bourses
Nikkei retains 15-years high level
Japanese share market closed marginally higher after recouping intraday losses, helping the Nikkei Stock Average to extend its winning streak to 12 days. The positive finishing was propelled due to greenback appreciation above the 124-mark against the yen, a highest since Dec. 5, 2002, and after the finance ministry data indicated Japanese capital investment rose 5.8% from the previous quarter in the January-March period. The Nikkei Stock Average rose 6.72 points, or 0.03%, to end at 20569.87, the highest level since April 2000. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.29%, or 4.91 points, to 1678.56.
The Nikkei opened lower and had trouble rising into positive territory until late in the session. A sturdy dollar has helped to keep it above water--but just barely--as the greenback keeps stretching higher against the yen. The dollar was at 124.19 yen, compared with 124.18 yen late Friday in New York. After staying steady above the 124 yen mark most of the session, the greenback briefly broke below that threshold midday, hitting as low as 123.94 yen amid a lack of trading incentives. The dollar rallied last week and at one point hit 124.46 yen, its highest since Dec. 5, 2002.
Shares of cosmetics maker Shiseido rose 2.6% after positive reports on its future growth prospects in Japan, China, and the recovery of its loss-making U.S. unit Bare Escentuals.
Toshiba Corp. added 3.3% after reports that the electronics group may move to restore its dividend, which the company slashed last month amid an internal accounting probe.
Mizuho Financial Group Inc. climbed 1.8% on reports it may boost its cash holdings. Separately, the Nikkei reported Mizuho reached an agreement to sell 230 billion worth of cross-held shares.
Teijin jumped 3.9% after UBS AG upgraded its rating on the fiber maker to buy from neutral. The brokerage also lifted its price target for the manufacturer of polyester products to 550 yen.
Australia market falls on mixed economic data
The Australian share market closed down, due to risk-off selling across the board, with shares of consumer staples, materials, industrials, and financial companies being major losers amid a flurry of mixed economic data. The benchmark S&P/ASX 200 Index dropped 41.80 points, or 0.72%, to 5735.40, while the broader All Ordinaries Index dropped 40.90 points, or 0.7%, to 5734. Market turnover was relatively light, with 1.65 billion shares changing hands worth of A$4.28 billion.
Shares of materials and resources companies closed down after weak domestic building approval figures and soft Chinese manufacturing data. BHP Billiton declined 1.4% at A$29.19 and Rio Tinto lost 1.3% to A$57.42. Fortescue Metals Group dropped 1.7% to A$2.38.
Banks and financial stocks were down, with Commonwealth Bank of Australia falling 0.7% to A$84.48, while Westpac Banking Corp lost 1.3% to A$33.13, National Australia Bank fell 0.8% to A$34.03, and ANZ Banking Group shed 1.4% to A$32.72.
Gross Operating Profit of the Australian companies climbed by 0.2% to a seasonally adjusted A$64.5 billion in the first quarter of 2015 from the fourth quarter of 2014, according to latest data from the Australian Bureau of Statistics. Company profits were down by 7.5% in the first quarter from a year earlier, according to the figures.
Separate data from Australian Bureau of Statistics showed that Approvals to build or renovate houses and apartments declined by 4.4% in April from March. In March, approvals rose by a revised 2.9% from February. Building approvals rose by 16.3% in April from a year earlier, the ABS said. Meanwhile, permits to build houses climbed by 4.7% in April from March, while approvals for apartments, townhouses and other dwellings fell by 15%.
China stocks bounces 4.7%
Mainland China share market zoomed, snapping a two-day losing streak including its second-biggest loss of 2015. The bottom fishing across the board was propelled after a Chinese factory gauge rose for the third month in May and chorus of domestic media commentary asserting the bull market has not yet ended. The Shanghai Composite Index closed 216.99 points, or 4.71%, to finish at 4828.74. The CSI300 index added 35.35 points, or 4.86%, to 5076.18.
The Monday rebound came after the official manufacturing Purchasing Managers' Index (PMI) data showed growth in China's giant factory sector edged up to a six-month high 50.2 in May, compared with 50.1 in April. A separate preliminary gauge from HSBC Holdings Plc and Markit Economics rose to 49.2 from 48.9. The PMI figures, both the official one and the HSBC one, were very close to the consensus view and they can be interpreted as a further normalization in the economy.
Major state-backed newspapers, including the China Securities Journal and the Shanghai Securities News, carried front-page articles saying despite the market tumble on Thursday, the logic behind the bull market - monetary easing and economic restructuring - remain unchanged.
All 10 SSE industry groups ended higher, with utilities issue being top gainer, with rise of 6.9%, followed by energy up 6.5%, information technology up 5.4%, consumer discretionary up 5.1%, consumer staples up 5.1%, telecommunication services up 5%, materials up 5%, healthcare up 4.8%, financials up 4.5%, industrials up 4.5%.
HSI closes 0.6% higher
The Hong Kong stock market finished higher, on catching-up rally in the mainland counterparts, after China's official manufacturing PMI for May came in line with expectations. The benchmark index opened lower, but reversed its trend on the back of A-share rally. The Hang Seng Index ended up 172.97 points or 0.63% to 27597.16, off an intra-day high of 27766.32 and day low of 27241.95. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 195.64 points, or 1.39%, to 14299.45 points. Turnover reduced to HK$164.84 billion from HK$204.8 billion on Friday.
Hong Kong-listed Chinese drug stocks rose, after the central government removed price caps for most medicines starting Monday, in order to allow markets play a larger role. Shanghai Pharmaceuticals Holdings Co. rallied 4.7% and Guangzhou Baiyunshan Pharmaceutical Holdings Co 2.5%.
Shares of realty players were up. Property developer Evergrande Real Estate Group climbed 5.7%, rival China Overseas Land & Investment Ltd. gained 1.8%.
Brokerage firms were down on worries of China's tightening of margin financing. GF SEC (01776) slipped 3%, Haitong Securities Co 1.8% and Citic Securities Co 0.8%.
Shares of casino stocks declined after Macau gaming authorities reported that gross gaming revenues for May fell 37.1%, slightly better than consensus estimates of decline of 38.5%. Galaxy Ent (00027) dipped 4.5% to HK$35.45. Sands China (01928) fell 3.7% to HK$28.85. MGM China (02282) slid 3.7% to HK$13.58.
Newcomer HTSC (06886) closed at HK$26, or 4.8% above its IPO price of HK$24.8, as investors bet China's biggest broker by trading volume would continue to benefit from a boom in the country's stock markets.
Sensex ekes out minuscule gains
A divergent trend was witnessed among the two key benchmark indices, with the barometer index, the S&P BSE Sensex, registering minuscule gains and the 50-unit CNX Nifty ending marginally lower for the day. The Sensex garnered 20.55 points or 0.07% to settle at 27,848.99. The Nifty declined 0.25 points to settle at 8,433.40. A divergent trend was witnessed among various index constituents.
Meanwhile, data released by India's statistics office after trading hours on Friday, 29 May 2015, showed that the Indian economy grew 7.5% in Q4 March 2015, which was much higher than revised GDP growth of 6.6% in Q3 December 2014. Meanwhile, the Union Cabinet on Saturday, 30 May 2015, gave its approval to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2015.
Foreign portfolio investors bought Indian shares worth a net Rs 2273.13 crore from the secondary equity markets during the previous trading session on Friday, 29 May 2015, as per data from the depositories. Domestic institutional investors (DIIs) sold shares worth a net Rs 2267.88 crore on Friday, 29 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.8% to 9625.69. South Korea's KOSPI lost 0.6% to 2102.37. Malaysia's KLCI dropped 0.25% to 1743.41. Indonesia's Jakarta Composite index fell marginal 0.05% to 5213.82.
