Asia Pacific share market declined on Friday, 26 June 2015, as investors
rushed to trim riskier assets amid dwindling hopes of a Greek deal, due
to recent false hopes of a resolution to the debt crisis.
Eurozone finance ministers adjourned a meeting with no decision on Thursday to give Greece and the institutions overseeing its bailout more time to agree on conditions for aid.
Negotiations are expected to stretch into the weekend, as significant differences remain over pension cuts and other aid conditions.
German chancellor Angela Merkel said a euro zone finance ministers' meeting over the weekend would be decisive for finding a solution to Greece's debt crisis.
Talks over Greece's bailout continue to set the tone in financial markets as investors await a resolution from Brussels with a deadline for the country to make debt payments expiring next week.
Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund (IMF) on 30 June 2015. On the same day, Greece's international bailout expires. A default on its international creditors-the IMF and other eurozone governments-could force Greece into a messy exit from the euro.
There are talks that if a deal couldn't be reached by Greece and international creditors by Saturday, the EU officials would start turning their attention to managing the scenario of a default.
Among Asian bourses
Nikkei weakens 0.3%
Japanese share market declined for second straight session, as negative finish of offshore markets overnight, yen appreciation against major currency baskets, and the Greek crisis in Europe weighed on investors sentiments. The Nikkei Stock Average declined 65.25 points, or 0.31%, to finish at 20706.15. The Topix index of all Tokyo Stock Exchange First Section issues dropped 0.23%, or 3.88 points, to close at 1667.03. For the week, the Nikkei225 index accumulated 2.6% gain, while the Topix index added 2.2%.
The decline in Tokyo market largely by drop in blue chips trading without rights to their latest dividends, such as Canon Inc which down 3.1%, Bridgestone Corp. down 1.3%, Honda Motor Co down 0.6% and Kirin Holdings Co. down 1.6%.
Shares of retail sector advanced after official data showing May household spending rose almost 5% from a year earlier. , Fast Retailing Co added 0.5% and Isetan Mitsukoshi climbed 0.2%. J. Front Retailing Co rose 1.6% after reporting its earnings-per-share more than tripled during the January-March quarter.
The energy and airline shares went in opposite directions as oil futures sunk in U.S. and London trade. Shares of Inpex Corp dropped 1.7%. Japan Airlines Co rose 1.4% after Nomura Holdings Inc. boosted its target price on the stock and amid the prospect of lower fuel prices.
Japan's average household spending rebounded a real 4.8% on year in May, the first rise in 14 months after decline of 1.3% in April, according to data from the Ministry of Internal Affairs and Communications released on Friday.
Japan's seasonally adjusted average unemployment rate remained at an 18-year low of 3.3% in May, unchanged from April, according to data from the Ministry of Internal Affairs and Communications released on Friday.
Japan's core consumer price index - excluding volatile perishables - rose 0.1% on year in May, slower than pace of increase by 0.3% in April, according to data released from the Ministry of Internal Affairs and Communications released on Friday.
Australia market falls
The Australian share market declined for second straight session, amid pullback for commodity prices and mounting uncertainty about Greece's emergency debt talks. Barring consumer staples, all ASX sectors closed lower, with shares of financials and mining players leading selloff. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 1.5% to 5545.90 and 5536.10, respectively. Market turnover was relatively average with 1.8 billion shares changing hands worth of A$5.34 billion. For the week, the All Ordinaries was down 1% and the ASX200 fell 0.9%.
Shares of materials and energy companies closed sharply lower, amid fall in commodity prices - including iron ore and oil. Rio Tinto dropped 2.8% to A$54.08 and Junior iron ore producer Fortescue Metals Group declined 6.1% to A$1.99. BHP Billiton declined 3.5% to A$27.50 on reports the resource major was cutting another 140 jobs amid weakness for the commodities. Oil explorer Woodside Petroleum dropped 2.4% to A$34.82, Origin Energy 6.5% to A$11.70 and Santos 2.1% to A$8.05.
China market tumbles over 7%
The Mainland China share market tumbled, as panicked investors rushed to sell amid increasing worries that the country's bull-run is running out of steam. Stocks fell across the board, with companies relating to communications, the Internet, medical care, education and transportation were the biggest losers amid mounting concerns over market overvaluation. The Shanghai Composite Index stumbled 334.91 points, or 7.4% to end at 4192.87, extending yesterday's 3.5% slump. The Shenzhen Component Index dived 8.24%, or 1293.66 points, to close at 14398.79 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, tumbled a record 8.91% to end at 2920.7 points. Over the week, the Shanghai market lost 6.37% and the Shenzhen market dropped 8.72%.
Shares of Chinese airlines retreated after mainland media reports that China plans to merge the cargo operations of China's three biggest state-owned airlines, including Air China, China Eastern Airlines and China Southern Airlines and form Asia's largest air cargo operator.
China Southern Airlines and China Eastern Airlines both locked 10% lower circuit at 13.74 yuan and 11.67 yuan, respectively. Air China pulled slipped 2.3% to 13.96 yuan.
Financials and Aviation manufacturing stocks were also lower. Suzhou New District Hi-Tech Industrial and Iflytec plummeted by the daily limit of 10% to close at 11.93 yuan and 35.29 yuan, respectively. Guosen Securities fell by 9.73% to 24.95 yuan. China Life Insurance Co plunged 6.05% to 77.44 yuan.
Hong Kong stocks extend losses
The Hong Kong stock market finished lower for second straight day, as jittery investors sought to cut riskier assets after lack of resolution between Greece and its foreign creditors.
A steep decline in the Mainland market also triggered risk off selloff. The Hang Seng Index dropped 481.88 points or 1.78% to finish at 26663.87, off an intra-day high of 27016.09 and day low of 26522.45. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 379.71 points, or 2.82%, to 13088.19 points. Turnover increased to HK$151.28 billion from HK$118.5 billion on Thursday.
Sensex registers small losses
Indian stock market closed down, after RBI's stress test surprisingly showed private banks are likely to see a significant jump in bad loans. Meanwhile, dwindling hopes of a Greek deal weighed on sentiment. As per provisional closing, the S&P BSE Sensex was down 86.57 points or 0.31% at 27,809.40, while the CNX Nifty was down 16 points or 0.2% at 8,381.10.
IT stocks edged higher.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has reportedly expressed concern that the world may be slipping into the kind of problems of the depression of the 1930s and an international consensus was needed to be built over time. Speaking at a London Business School (LBS) conference yesterday, 25 June 2015, Rajan reportedly said that the situation is different in India where RBI still needs to bring down lending rates to spur investments.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 280.21 crore yesterday, 25 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 8.45 crore yesterday, 25 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.2% to 9462.57. South Korea's KOSPI rose 0.3% to 2090.26. New Zealand's NZX50 added 0.4% to 5755.44. Singapore's Straits Times index lost 0.9% at 3320.90. Malaysia's KLCI declined 0.4% to 1710.47. Indonesia's Jakarta Composite index was up 0.1% to 4923.
Eurozone finance ministers adjourned a meeting with no decision on Thursday to give Greece and the institutions overseeing its bailout more time to agree on conditions for aid.
Negotiations are expected to stretch into the weekend, as significant differences remain over pension cuts and other aid conditions.
German chancellor Angela Merkel said a euro zone finance ministers' meeting over the weekend would be decisive for finding a solution to Greece's debt crisis.
Talks over Greece's bailout continue to set the tone in financial markets as investors await a resolution from Brussels with a deadline for the country to make debt payments expiring next week.
Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund (IMF) on 30 June 2015. On the same day, Greece's international bailout expires. A default on its international creditors-the IMF and other eurozone governments-could force Greece into a messy exit from the euro.
There are talks that if a deal couldn't be reached by Greece and international creditors by Saturday, the EU officials would start turning their attention to managing the scenario of a default.
Among Asian bourses
Nikkei weakens 0.3%
Japanese share market declined for second straight session, as negative finish of offshore markets overnight, yen appreciation against major currency baskets, and the Greek crisis in Europe weighed on investors sentiments. The Nikkei Stock Average declined 65.25 points, or 0.31%, to finish at 20706.15. The Topix index of all Tokyo Stock Exchange First Section issues dropped 0.23%, or 3.88 points, to close at 1667.03. For the week, the Nikkei225 index accumulated 2.6% gain, while the Topix index added 2.2%.
The decline in Tokyo market largely by drop in blue chips trading without rights to their latest dividends, such as Canon Inc which down 3.1%, Bridgestone Corp. down 1.3%, Honda Motor Co down 0.6% and Kirin Holdings Co. down 1.6%.
Shares of retail sector advanced after official data showing May household spending rose almost 5% from a year earlier. , Fast Retailing Co added 0.5% and Isetan Mitsukoshi climbed 0.2%. J. Front Retailing Co rose 1.6% after reporting its earnings-per-share more than tripled during the January-March quarter.
The energy and airline shares went in opposite directions as oil futures sunk in U.S. and London trade. Shares of Inpex Corp dropped 1.7%. Japan Airlines Co rose 1.4% after Nomura Holdings Inc. boosted its target price on the stock and amid the prospect of lower fuel prices.
Japan's average household spending rebounded a real 4.8% on year in May, the first rise in 14 months after decline of 1.3% in April, according to data from the Ministry of Internal Affairs and Communications released on Friday.
Japan's seasonally adjusted average unemployment rate remained at an 18-year low of 3.3% in May, unchanged from April, according to data from the Ministry of Internal Affairs and Communications released on Friday.
Japan's core consumer price index - excluding volatile perishables - rose 0.1% on year in May, slower than pace of increase by 0.3% in April, according to data released from the Ministry of Internal Affairs and Communications released on Friday.
Australia market falls
The Australian share market declined for second straight session, amid pullback for commodity prices and mounting uncertainty about Greece's emergency debt talks. Barring consumer staples, all ASX sectors closed lower, with shares of financials and mining players leading selloff. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 1.5% to 5545.90 and 5536.10, respectively. Market turnover was relatively average with 1.8 billion shares changing hands worth of A$5.34 billion. For the week, the All Ordinaries was down 1% and the ASX200 fell 0.9%.
Shares of materials and energy companies closed sharply lower, amid fall in commodity prices - including iron ore and oil. Rio Tinto dropped 2.8% to A$54.08 and Junior iron ore producer Fortescue Metals Group declined 6.1% to A$1.99. BHP Billiton declined 3.5% to A$27.50 on reports the resource major was cutting another 140 jobs amid weakness for the commodities. Oil explorer Woodside Petroleum dropped 2.4% to A$34.82, Origin Energy 6.5% to A$11.70 and Santos 2.1% to A$8.05.
China market tumbles over 7%
The Mainland China share market tumbled, as panicked investors rushed to sell amid increasing worries that the country's bull-run is running out of steam. Stocks fell across the board, with companies relating to communications, the Internet, medical care, education and transportation were the biggest losers amid mounting concerns over market overvaluation. The Shanghai Composite Index stumbled 334.91 points, or 7.4% to end at 4192.87, extending yesterday's 3.5% slump. The Shenzhen Component Index dived 8.24%, or 1293.66 points, to close at 14398.79 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, tumbled a record 8.91% to end at 2920.7 points. Over the week, the Shanghai market lost 6.37% and the Shenzhen market dropped 8.72%.
Shares of Chinese airlines retreated after mainland media reports that China plans to merge the cargo operations of China's three biggest state-owned airlines, including Air China, China Eastern Airlines and China Southern Airlines and form Asia's largest air cargo operator.
China Southern Airlines and China Eastern Airlines both locked 10% lower circuit at 13.74 yuan and 11.67 yuan, respectively. Air China pulled slipped 2.3% to 13.96 yuan.
Financials and Aviation manufacturing stocks were also lower. Suzhou New District Hi-Tech Industrial and Iflytec plummeted by the daily limit of 10% to close at 11.93 yuan and 35.29 yuan, respectively. Guosen Securities fell by 9.73% to 24.95 yuan. China Life Insurance Co plunged 6.05% to 77.44 yuan.
Hong Kong stocks extend losses
The Hong Kong stock market finished lower for second straight day, as jittery investors sought to cut riskier assets after lack of resolution between Greece and its foreign creditors.
A steep decline in the Mainland market also triggered risk off selloff. The Hang Seng Index dropped 481.88 points or 1.78% to finish at 26663.87, off an intra-day high of 27016.09 and day low of 26522.45. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 379.71 points, or 2.82%, to 13088.19 points. Turnover increased to HK$151.28 billion from HK$118.5 billion on Thursday.
Sensex registers small losses
Indian stock market closed down, after RBI's stress test surprisingly showed private banks are likely to see a significant jump in bad loans. Meanwhile, dwindling hopes of a Greek deal weighed on sentiment. As per provisional closing, the S&P BSE Sensex was down 86.57 points or 0.31% at 27,809.40, while the CNX Nifty was down 16 points or 0.2% at 8,381.10.
IT stocks edged higher.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has reportedly expressed concern that the world may be slipping into the kind of problems of the depression of the 1930s and an international consensus was needed to be built over time. Speaking at a London Business School (LBS) conference yesterday, 25 June 2015, Rajan reportedly said that the situation is different in India where RBI still needs to bring down lending rates to spur investments.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 280.21 crore yesterday, 25 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 8.45 crore yesterday, 25 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.2% to 9462.57. South Korea's KOSPI rose 0.3% to 2090.26. New Zealand's NZX50 added 0.4% to 5755.44. Singapore's Straits Times index lost 0.9% at 3320.90. Malaysia's KLCI declined 0.4% to 1710.47. Indonesia's Jakarta Composite index was up 0.1% to 4923.
