Asia Pacific share market extended falling streak on Tuesday, 09 June
2015, as risk sentiment hit by tracking a negative lead from Wall Street
overnight, uncertainty over the future of Greece, and downbeat Chinese
inflation data.
The US stock market slipped into the red on Monday, amid cautious over the possibility that the U.S. Federal Reserve will raise its benchmark interest rate later this year for the first time since the 2009 global recession after a strong jobs report last Friday suggested that the economy is recovering from its winter slump. The Dow Jones industrial average fell 82.91 points, or 0.5%, to 17,766.55. The Standard & Poor's 500 dropped 13.55 points, or 0.7%, to 2,079.28.
Talks between Greece and its creditors have been deadlocked since late last week. Greek Prime Minister Alexis Tsipras rejected as unacceptable a proposal made by the three institutions overseeing the country's bailout: the European Central Bank, the International Monetary Fund and the European Commission. An agreement is needed by June 30, when Greece's emergency financing program ends.
Data from the National Bureau of Statistics showed on Tuesday that China's consumer inflation eased in May, growing at 1.2% year-on-year, a slowest pace in five months, renewing concerns about slowing growth in the world's second largest economy. Meanwhile, producer prices fell 4.6% in May from a year earlier.
Among Asian bourses
Australia market extends loss in post-holiday return
The Australian share market extended last week falling streak today. Barring energy, all ASX sectors dived into sea of red, with top-weighted financial and mining stocks being major losers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.5% to 5471.300 and 5479.70, respectively. Market turnover was relatively light, with 1.56 billion shares changing hands worth of A$3.21 billion. The ASX 200 dropped 4.8% last week, the worst weekly drop in three years. Australian stock market closed on Monday for national holiday.
Materials and resources stocks declined, with BHP Billiton down by 1% at A$27.63 and Rio Tinto down by 1.2% to A$56.33, while Fortescue Metals Group rose 3% to A$2.39. South32 was down 2.3% to A$43.25 after its South African manganese joint venture said it would delay the restart of several key furnaces. Gold miner Newcrest Mining lost 1.8% to A$13.43 on reports about a disruption to some of its Papuan mining operations over the weekend.
Shares in energy-services major Santos grew 1.1% to A$8 after Morgan Stanley upgraded the shares to overweight from equal-weight and hiked its price target by 22%.
Nine Entertainment Co. Holdings declined 16.4% to A$1.66 after the free-to-air TV network owner cutting its earnings forecast. In an announcement to the Australian Securities Exchange on Friday the free-to-air TV network owner said it expected its EBITDA- earnings before interest, tax, depreciation of amortisation- for the current financial year to be around A$285-A$290 million, down on the expected A$311 million.
The Australia Bureau of Statistics home loans data for April released on Tuesday showed that lending to home buyers climbed by 1% from March, supported by record-low interest rates that propelled a 2.6% rise in the value of loans to property investors. Loans to build new houses rose by 4.3% in April from March, while approvals to buy newly built homes increased by 1.6%. Lending for longer-established residential property rose by 0.5%.
Japan stocks tumble on weak offshore lead, stronger yen
Japanese share market suffered losses for second straight day, as risk aversion selloff triggered on tracking a negative lead from Wall Street overnight and yen appreciation against the greenback. The Nikkei Stock Average declined 360.89 points, or 1.76%, to end at 20096.30. The Topix index of all Tokyo Stock Exchange First Section issues decreased 1.66%, or 27.62 points, to close at 1634.37.
The US dollar declined against major currency baskets after reports that US authorities were uncomfortable with their strong currency. The news reports cited U.S. President Barack Obama, who was in Germany for the Group of Seven summit, as saying the strong dollar was a problem. A White House statement denied the message, and Mr. Obama himself denied the report later. Some US officials including from the Federal Reserve have in the past few months raised concerns about a strong currency impacting growth and exports. The dollar managed to fall by a full yen to 124.66 yen, losing hold of the 125 yen level.
Shares of export-related companies were down on profit taking after the yen appreciated to 124 level against the dollar from yesterday's 13-year lows level of 125.54 yen. Among blue-chip exporters- Sony Corp dented 2.4% to 3607 yen, Panasonic Corp 2.3% to 1697 yen, Canon Inc 1.6% to 4182 yen, and Kyocera Corp 1.4% to 6623 yen. Nissan Motor Co dropped 3.2% to 1275 yen and Honda Motor Co 2.1% to 4153.50 yen.
Kawasaki Heavy Industries traded 1.6% lower at 608 yen, despite reports that it formed a joint venture with a Chinese conveyor maker as part of a push to sell robots in the country.
China stocks suffers on downbeat CPI and PPI readings
Mainland China share market declined from seven years peak, amid profit booking after downbeat CPI and PPI readings and on caution before the MSCI Inc. decision later in the global day on whether it will add domestic stocks to its emerging markets index. The benchmark Shanghai Composite Index decreased by 18.35 points, or 0.36%, to close at 5113.53, after closing Monday at its highest since January 2008.
Total of five out of ten SSE industry groups ended down, with industrial issue being top loser (down 1.6%), followed by financial (down 1.6%), healthcare (down 1.3%) and consumer staple (down 0.1%). Bucking the trend, energy issue was top gainer, up 2.4%, followed by utilities (up 2%), information technology (up 1%), consumer discretionary (up 0.4%), and materials (up 0.1%).
Bright Dairy & Food Co surged by the 10% daily limit, after its shares resumed trading following a three-month suspension. The Chinese milk producer said it planned to raise up to 9 billion yuan ($1.45 billion) from select investors to buy Israeli food firm Tnuva from its state-owned parent.
Hong Kong market falls 1.2%
The Hong Kong stock market finished the session lower, dragged down by weak lead from Wall Street overnight, deadlocked Greek bailout negotiations, and downbeat China's consumer inflation data. The Hang Seng Index dropped 326.76 points or 1.2% to finish at 26989.52, off an intra-day high of 27322.14 and day low of 26971.57. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 252 points, or 1.8%, to 13861.96 points. Turnover increased to HK$166.9 billion from HK$151.1 billion on Monday.
Train makers were mostly lower, with CRRC Corp down 12.5% to HK$13.72, erasing a 4.5% rally at its trading debut the previous day. China Railway Group slipped 5.6% to HK$9.61, China Railway Construction Corp 6.3% to HK$13.50, Zhuzhou CSR Times Electric Co 6.1% to HK$61.30, and China Communications Construction Co 3.8% to HK$12.68.
Shares of China Properties Investment Holdings tumbled 21.6% to HK$2.40 after it agreed to subscribe to 6.5 billion new shares from China Properties Investment Holdings for HK$650 million in a share-placement deal
Macau gaming stocks suffered losses, after investment bank Barclays projected that Macau casinos' average daily table revenue would drop sharply in the first seven days of this month. Melco Crown Entertainment dropped 5.1% to HK$50.85, Wynn Macau 4.5% to HK$14.32, and Galaxy Entertainment Group 3.7% to HK$33.85.
Indian stocks down on late afternoon trade
Key benchmark indices continued to see divergent trend in late-afternoon trade. The barometer index, the S&P BSE Sensex, was trading with small gains. The 50-unit CNX Nifty languished in negative zone. The market breadth indicating the overall health of the market was weak. At 14:15 IST, the S&P BSE Sensex was up 11.40 points or 0.04% at 26,534.49. The CNX Nifty was down 22.45 points or 0.28% at 8,021.70.
IT stocks fell as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 749.12 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 529.82 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 1.9% to 9191.87. South Korea's KOSPI dropped 0.1% to 2064.03. New Zealand's NZX50 was down 0.4% to 5862.11. Singapore's Straits Times index fell 0.6% at 3299.58. Malaysia's KLCI dropped 0.6% to 1729.05. Indonesia's Jakarta Composite index lost 2.3% to 4901.21.
The US stock market slipped into the red on Monday, amid cautious over the possibility that the U.S. Federal Reserve will raise its benchmark interest rate later this year for the first time since the 2009 global recession after a strong jobs report last Friday suggested that the economy is recovering from its winter slump. The Dow Jones industrial average fell 82.91 points, or 0.5%, to 17,766.55. The Standard & Poor's 500 dropped 13.55 points, or 0.7%, to 2,079.28.
Talks between Greece and its creditors have been deadlocked since late last week. Greek Prime Minister Alexis Tsipras rejected as unacceptable a proposal made by the three institutions overseeing the country's bailout: the European Central Bank, the International Monetary Fund and the European Commission. An agreement is needed by June 30, when Greece's emergency financing program ends.
Data from the National Bureau of Statistics showed on Tuesday that China's consumer inflation eased in May, growing at 1.2% year-on-year, a slowest pace in five months, renewing concerns about slowing growth in the world's second largest economy. Meanwhile, producer prices fell 4.6% in May from a year earlier.
Among Asian bourses
Australia market extends loss in post-holiday return
The Australian share market extended last week falling streak today. Barring energy, all ASX sectors dived into sea of red, with top-weighted financial and mining stocks being major losers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.5% to 5471.300 and 5479.70, respectively. Market turnover was relatively light, with 1.56 billion shares changing hands worth of A$3.21 billion. The ASX 200 dropped 4.8% last week, the worst weekly drop in three years. Australian stock market closed on Monday for national holiday.
Materials and resources stocks declined, with BHP Billiton down by 1% at A$27.63 and Rio Tinto down by 1.2% to A$56.33, while Fortescue Metals Group rose 3% to A$2.39. South32 was down 2.3% to A$43.25 after its South African manganese joint venture said it would delay the restart of several key furnaces. Gold miner Newcrest Mining lost 1.8% to A$13.43 on reports about a disruption to some of its Papuan mining operations over the weekend.
Shares in energy-services major Santos grew 1.1% to A$8 after Morgan Stanley upgraded the shares to overweight from equal-weight and hiked its price target by 22%.
Nine Entertainment Co. Holdings declined 16.4% to A$1.66 after the free-to-air TV network owner cutting its earnings forecast. In an announcement to the Australian Securities Exchange on Friday the free-to-air TV network owner said it expected its EBITDA- earnings before interest, tax, depreciation of amortisation- for the current financial year to be around A$285-A$290 million, down on the expected A$311 million.
The Australia Bureau of Statistics home loans data for April released on Tuesday showed that lending to home buyers climbed by 1% from March, supported by record-low interest rates that propelled a 2.6% rise in the value of loans to property investors. Loans to build new houses rose by 4.3% in April from March, while approvals to buy newly built homes increased by 1.6%. Lending for longer-established residential property rose by 0.5%.
Japan stocks tumble on weak offshore lead, stronger yen
Japanese share market suffered losses for second straight day, as risk aversion selloff triggered on tracking a negative lead from Wall Street overnight and yen appreciation against the greenback. The Nikkei Stock Average declined 360.89 points, or 1.76%, to end at 20096.30. The Topix index of all Tokyo Stock Exchange First Section issues decreased 1.66%, or 27.62 points, to close at 1634.37.
The US dollar declined against major currency baskets after reports that US authorities were uncomfortable with their strong currency. The news reports cited U.S. President Barack Obama, who was in Germany for the Group of Seven summit, as saying the strong dollar was a problem. A White House statement denied the message, and Mr. Obama himself denied the report later. Some US officials including from the Federal Reserve have in the past few months raised concerns about a strong currency impacting growth and exports. The dollar managed to fall by a full yen to 124.66 yen, losing hold of the 125 yen level.
Shares of export-related companies were down on profit taking after the yen appreciated to 124 level against the dollar from yesterday's 13-year lows level of 125.54 yen. Among blue-chip exporters- Sony Corp dented 2.4% to 3607 yen, Panasonic Corp 2.3% to 1697 yen, Canon Inc 1.6% to 4182 yen, and Kyocera Corp 1.4% to 6623 yen. Nissan Motor Co dropped 3.2% to 1275 yen and Honda Motor Co 2.1% to 4153.50 yen.
Kawasaki Heavy Industries traded 1.6% lower at 608 yen, despite reports that it formed a joint venture with a Chinese conveyor maker as part of a push to sell robots in the country.
China stocks suffers on downbeat CPI and PPI readings
Mainland China share market declined from seven years peak, amid profit booking after downbeat CPI and PPI readings and on caution before the MSCI Inc. decision later in the global day on whether it will add domestic stocks to its emerging markets index. The benchmark Shanghai Composite Index decreased by 18.35 points, or 0.36%, to close at 5113.53, after closing Monday at its highest since January 2008.
Total of five out of ten SSE industry groups ended down, with industrial issue being top loser (down 1.6%), followed by financial (down 1.6%), healthcare (down 1.3%) and consumer staple (down 0.1%). Bucking the trend, energy issue was top gainer, up 2.4%, followed by utilities (up 2%), information technology (up 1%), consumer discretionary (up 0.4%), and materials (up 0.1%).
Bright Dairy & Food Co surged by the 10% daily limit, after its shares resumed trading following a three-month suspension. The Chinese milk producer said it planned to raise up to 9 billion yuan ($1.45 billion) from select investors to buy Israeli food firm Tnuva from its state-owned parent.
Hong Kong market falls 1.2%
The Hong Kong stock market finished the session lower, dragged down by weak lead from Wall Street overnight, deadlocked Greek bailout negotiations, and downbeat China's consumer inflation data. The Hang Seng Index dropped 326.76 points or 1.2% to finish at 26989.52, off an intra-day high of 27322.14 and day low of 26971.57. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 252 points, or 1.8%, to 13861.96 points. Turnover increased to HK$166.9 billion from HK$151.1 billion on Monday.
Train makers were mostly lower, with CRRC Corp down 12.5% to HK$13.72, erasing a 4.5% rally at its trading debut the previous day. China Railway Group slipped 5.6% to HK$9.61, China Railway Construction Corp 6.3% to HK$13.50, Zhuzhou CSR Times Electric Co 6.1% to HK$61.30, and China Communications Construction Co 3.8% to HK$12.68.
Shares of China Properties Investment Holdings tumbled 21.6% to HK$2.40 after it agreed to subscribe to 6.5 billion new shares from China Properties Investment Holdings for HK$650 million in a share-placement deal
Macau gaming stocks suffered losses, after investment bank Barclays projected that Macau casinos' average daily table revenue would drop sharply in the first seven days of this month. Melco Crown Entertainment dropped 5.1% to HK$50.85, Wynn Macau 4.5% to HK$14.32, and Galaxy Entertainment Group 3.7% to HK$33.85.
Indian stocks down on late afternoon trade
Key benchmark indices continued to see divergent trend in late-afternoon trade. The barometer index, the S&P BSE Sensex, was trading with small gains. The 50-unit CNX Nifty languished in negative zone. The market breadth indicating the overall health of the market was weak. At 14:15 IST, the S&P BSE Sensex was up 11.40 points or 0.04% at 26,534.49. The CNX Nifty was down 22.45 points or 0.28% at 8,021.70.
IT stocks fell as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 749.12 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 529.82 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 1.9% to 9191.87. South Korea's KOSPI dropped 0.1% to 2064.03. New Zealand's NZX50 was down 0.4% to 5862.11. Singapore's Straits Times index fell 0.6% at 3299.58. Malaysia's KLCI dropped 0.6% to 1729.05. Indonesia's Jakarta Composite index lost 2.3% to 4901.21.
