Asia Pacific stock market closed mixed in volatile trading on Friday, 05
June 2015, as lingering uncertainties over a Greek resolution,
volatility in the European bond market, along with the closely-watched
nonfarm payrolls report due in the U.S kept investors cautious.
Greece was due to repay 303.3 million euros ($341.85 million) to the International Monetary Fund on Friday, 5 June 2015. But Athens notified the IMF on Thursday, 4 June 2015, that it plans to bundle all its June loan repayments into one payment of around euro 1.6 billion due by the end of the month. This option has only been used once before, by Zambia. Greece was expected to have been able to make the payment, so the move is largely seen as a defiant gesture toward the international creditors.
US stocks closed with sizable losses yesterday, 4 June 2015, weighed down in part by fresh Greek drama and US economic reports that helped make an interest-rate hike this year look more likely. Data showed the labour market tightening, with first-time applications for unemployment aid down last week and the number of people on benefit rolls hitting the lowest level since 2000, suggesting the Federal Reserve will remain on track to raise interest rates later this year. The data came ahead of Friday's key US jobs report. The International Monetary Fund has urged the Fed not to raise rates until there are clear signs of a pickup in wages and inflation.
The market moods were subdued ahead of the reading on US jobs for May and a summit of the Organization of the Petroleum Exporting Countries in Vienna later in the global day.
Among Asian bourses
Australia market extends loss for fifth day
The Australian share market finished the session down, registering fifth straight day of falling streak, as losses in financials and energy heavyweights were more than offset by strength among defensive healthcare, consumer goods, and retailer stocks. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.1% to 5598.50 and 5506.50, respectively. Market turnover was relatively healthy, with 1.86 billion shares changing hands worth of A$4.43 billion. For the week the ASX 200 dropped 4.8%, the worst weekly drop in three years.
Financial stocks closed down, with top four lenders continued leading retreat. The Commonwealth Bank of Australia declined 0.3% to A$80.29, Westpac Banking Corp 0.7% to A$31.19, ANZ Banking Group 1.1% to A$31.17, and National Australia Bank 1.5% to A$31.85.
Shares of energy companies closed mixed due to sharp pullback for oil futures overnight ahead of this month's OPEC meeting. Woodside Petroleum rose 0.3% to A$35.27 and Oil Search 0.4% to A$7.20, while Origin Energy fell 0.8% to A$12.62 and Santos 0.6% to A$7.91.
Materials and resources stocks mixed, with BHP Billiton down by 0.7% at A$27.90, while Rio Tinto grew 0.5% to A$57.02 and Fortescue Metals Group rose 1.8% to A$2.32 following another overnight gain for iron ore. Gold miner Newcrest Mining jumped 2.4% to A$13.67 and Perseus Mining added 1.2% to A$0.415.
Shares in grocer Metcash declined 1.8% to A$1.12, extending yesterday's 18% slump as Credit Suisse, Deutsche Bank, Macquarie and UBS all cut their price targets for the stock after Metcash announced a major writedown and omission of its dividend earlier this week. The grocery wholesaler shocked investors by suspending its dividend payments for the next 18 months after making $640 million worth of writedowns.
Shares in Novogen have jumped 10% after the company announced it has made a breakthrough in the development of its anti-cancer drug TRXE-009, with trials on animals showing that the drug can breach the blood-brain barrier.
Japan stocks down on profit taking, weak offshore lead
Japanese share market dragged down by tracking negative cues from Wall Street overnight, flat yen, and caution before the May U.S. jobs report due later in the day. The Nikkei Stock Average declined 27.29 points, or 0.13%, to end at 20460.90. The Topix index of all Tokyo Stock Exchange First Section issues dropped 0.41%, or 6.83 points, to 1667.06, dropping 0.4% this week.
Shares of export-related companies were down on profit booking after a halt in depreciation against greenback, with Toyota Motor Corp down by 0.7% after a report it may struggle to reach 2015 sales targets, while Nissan Motor Co declined 0.6%, Sony Corp fell 1.1%, Panasonic Corp dropped 1.5%, and Hitachi shed 1.1%. Nissha Printing Co., a touch-panel maker that relies on Europe for more than half of its sales, dropped 2.6%.
Stock in tire maker Sumitomo Rubber Industries Co retreated 1.8% on reports that its alliance with larger U.S. peer Goodyear Tire & Rubber Co was over, though Sumitomo will retain rights to sell Goodyear's Dunlop-brand tires in the Japanese market and will receive a $271 million payment from the Ohio-based company.
Shares of beverage makers advanced, with Kirin Holdings Co and Suntory Beverage & Food up 0.7% and 0.8%, respectively, on reports the two were increasing their whiskey production as global demand rises. Rival beverage majors Asahi Group Holdings jumped 2.3% and Sapporo Holdings added 1.3%.
China market settles at new seven-year peaks
Mainland China shares closed higher in volatile trading, with the benchmark Shanghai Composite Index up 1.5% to 5023.10, registering a first finish of above 5K level in over seven years.
The market gain mostly propelled after official data indicated China's consumption made a larger contribution to the Chinese economic growth in 2014. Consumption contributed 50.2% to China's gross domestic product growth in 2014, up 0.2 percentage points from 2013, according to data from the National Bureau of Statistics. Consumption totaled 32.83 trillion yuan (US$5.3 trillion) in 2014, up from 30.1 trillion yuan the previous year.
Investment provided 48.5%, down from 54.4% in 2013, and net exports contributed 1.3% to 2014 GDP growth, up from the negative 4.4% contribution the previous year. China's economic growth over the past two decades relied heavily on capital investment and exports. To ensure a more sustainable economic development, the government has been pushing for domestic consumption to grow to dilute reliance on investment and exports. China's GDP in 2014 was 64.08 trillion yuan, up from 58.97 trillion yuan the previous year.
Total of eight out of SSE industry groups ended higher, with material issue being top gainer, with gain of 4%, followed by industrial (up 3.7%), utilities (up 2.7%), energy (up 1.4%, consumer staples (up 1.3%), consumer discretionary (up 1%), healthcare (up 0.8%), and telecommunication services (up 0.4%). Bucking the trend, financial issue lost 0.7% and information technology declined 0.9%.
HSI closes 1.06% down
The Hong Kong stock market extended losses today, on tracking negative lead from Wall Street overnight, shrugging off the gain on Shanghai equity market which closed above 5,000 mark for the first time in seven years. The Hang Seng Index declined 291.73 points or 1.06% to finish at 27260.16, off an intra-day high of 27646.72 and day low of 27211.36. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 212.40 points, or 1.5%, to 13194.61 points. Turnover decreased to HK$158.45 billion from HK$195.2 billion on Thursday.
Among the blue chips, Hang Seng index heavyweight HSBC Holdings declined 0.9% after news it had agreed to pay $43 million to settle a Swiss money-laundering probe. CK Property (01113) dipped 3.3%. Belle (01880) gained 0.9% as its weighting on HSI will be lifted starting 8 June.
BYD Co closed down 11.1%, wiping out yesterday's 8.8% surge, after newly issued central-government regulations lowered access to the electric-vehicle manufacturing industry.
Oil stocks mostly down on tracking pullback of the international crude futures, with PetroChina Co down by 1.7%, China Petroleum & Chemical Corp down 2%, and Cnooc lower by 1.7%.
Banking shares also down due to profit taking after previous gains, with Bank of Communications Co lower by 3.1% after days of rally on news of its mixed-ownership reform plan submitted to authorities. China Construction Bank Corp was off 1.5% and Bank of China declined 1.3%.
Sensex ends down in volatile trade
Indian stock market closed last trading session of the week on a weak note. The 30-share Sensex provisionally ended down 43 points at 26,770 and the 50-share Nifty ended down 17 points at 8,114.
Markets become jittery in the late trades as investors remain cautious ahead of a key meeting of the OPEC cartel, which is expected to maintain its current production levels despite an oversupplied global market. Weakness in Index heavy weights with Tata Motors declining on weak Jaguar sales numbers coupled with losses in technology shares ahead of the US job data.
Foreign portfolio investors bought shares worth a net Rs 511.90 crore yesterday, 4 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 772.04 crore yesterday, 4 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index slipped 0.1% to 9340.13. South Korea's KOSPI dropped 0.23% to 2068.10. New Zealand's NZX50 was up 0.04% to 5867.90. Singapore's Straits Times index fell 0.34% at 333.673. Malaysia's KLCI added 0.2% to 1745.33. Indonesia's Jakarta Composite index gained 0.1% to 5100.57.
Greece was due to repay 303.3 million euros ($341.85 million) to the International Monetary Fund on Friday, 5 June 2015. But Athens notified the IMF on Thursday, 4 June 2015, that it plans to bundle all its June loan repayments into one payment of around euro 1.6 billion due by the end of the month. This option has only been used once before, by Zambia. Greece was expected to have been able to make the payment, so the move is largely seen as a defiant gesture toward the international creditors.
US stocks closed with sizable losses yesterday, 4 June 2015, weighed down in part by fresh Greek drama and US economic reports that helped make an interest-rate hike this year look more likely. Data showed the labour market tightening, with first-time applications for unemployment aid down last week and the number of people on benefit rolls hitting the lowest level since 2000, suggesting the Federal Reserve will remain on track to raise interest rates later this year. The data came ahead of Friday's key US jobs report. The International Monetary Fund has urged the Fed not to raise rates until there are clear signs of a pickup in wages and inflation.
The market moods were subdued ahead of the reading on US jobs for May and a summit of the Organization of the Petroleum Exporting Countries in Vienna later in the global day.
Among Asian bourses
Australia market extends loss for fifth day
The Australian share market finished the session down, registering fifth straight day of falling streak, as losses in financials and energy heavyweights were more than offset by strength among defensive healthcare, consumer goods, and retailer stocks. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.1% to 5598.50 and 5506.50, respectively. Market turnover was relatively healthy, with 1.86 billion shares changing hands worth of A$4.43 billion. For the week the ASX 200 dropped 4.8%, the worst weekly drop in three years.
Financial stocks closed down, with top four lenders continued leading retreat. The Commonwealth Bank of Australia declined 0.3% to A$80.29, Westpac Banking Corp 0.7% to A$31.19, ANZ Banking Group 1.1% to A$31.17, and National Australia Bank 1.5% to A$31.85.
Shares of energy companies closed mixed due to sharp pullback for oil futures overnight ahead of this month's OPEC meeting. Woodside Petroleum rose 0.3% to A$35.27 and Oil Search 0.4% to A$7.20, while Origin Energy fell 0.8% to A$12.62 and Santos 0.6% to A$7.91.
Materials and resources stocks mixed, with BHP Billiton down by 0.7% at A$27.90, while Rio Tinto grew 0.5% to A$57.02 and Fortescue Metals Group rose 1.8% to A$2.32 following another overnight gain for iron ore. Gold miner Newcrest Mining jumped 2.4% to A$13.67 and Perseus Mining added 1.2% to A$0.415.
Shares in grocer Metcash declined 1.8% to A$1.12, extending yesterday's 18% slump as Credit Suisse, Deutsche Bank, Macquarie and UBS all cut their price targets for the stock after Metcash announced a major writedown and omission of its dividend earlier this week. The grocery wholesaler shocked investors by suspending its dividend payments for the next 18 months after making $640 million worth of writedowns.
Shares in Novogen have jumped 10% after the company announced it has made a breakthrough in the development of its anti-cancer drug TRXE-009, with trials on animals showing that the drug can breach the blood-brain barrier.
Japan stocks down on profit taking, weak offshore lead
Japanese share market dragged down by tracking negative cues from Wall Street overnight, flat yen, and caution before the May U.S. jobs report due later in the day. The Nikkei Stock Average declined 27.29 points, or 0.13%, to end at 20460.90. The Topix index of all Tokyo Stock Exchange First Section issues dropped 0.41%, or 6.83 points, to 1667.06, dropping 0.4% this week.
Shares of export-related companies were down on profit booking after a halt in depreciation against greenback, with Toyota Motor Corp down by 0.7% after a report it may struggle to reach 2015 sales targets, while Nissan Motor Co declined 0.6%, Sony Corp fell 1.1%, Panasonic Corp dropped 1.5%, and Hitachi shed 1.1%. Nissha Printing Co., a touch-panel maker that relies on Europe for more than half of its sales, dropped 2.6%.
Stock in tire maker Sumitomo Rubber Industries Co retreated 1.8% on reports that its alliance with larger U.S. peer Goodyear Tire & Rubber Co was over, though Sumitomo will retain rights to sell Goodyear's Dunlop-brand tires in the Japanese market and will receive a $271 million payment from the Ohio-based company.
Shares of beverage makers advanced, with Kirin Holdings Co and Suntory Beverage & Food up 0.7% and 0.8%, respectively, on reports the two were increasing their whiskey production as global demand rises. Rival beverage majors Asahi Group Holdings jumped 2.3% and Sapporo Holdings added 1.3%.
China market settles at new seven-year peaks
Mainland China shares closed higher in volatile trading, with the benchmark Shanghai Composite Index up 1.5% to 5023.10, registering a first finish of above 5K level in over seven years.
The market gain mostly propelled after official data indicated China's consumption made a larger contribution to the Chinese economic growth in 2014. Consumption contributed 50.2% to China's gross domestic product growth in 2014, up 0.2 percentage points from 2013, according to data from the National Bureau of Statistics. Consumption totaled 32.83 trillion yuan (US$5.3 trillion) in 2014, up from 30.1 trillion yuan the previous year.
Investment provided 48.5%, down from 54.4% in 2013, and net exports contributed 1.3% to 2014 GDP growth, up from the negative 4.4% contribution the previous year. China's economic growth over the past two decades relied heavily on capital investment and exports. To ensure a more sustainable economic development, the government has been pushing for domestic consumption to grow to dilute reliance on investment and exports. China's GDP in 2014 was 64.08 trillion yuan, up from 58.97 trillion yuan the previous year.
Total of eight out of SSE industry groups ended higher, with material issue being top gainer, with gain of 4%, followed by industrial (up 3.7%), utilities (up 2.7%), energy (up 1.4%, consumer staples (up 1.3%), consumer discretionary (up 1%), healthcare (up 0.8%), and telecommunication services (up 0.4%). Bucking the trend, financial issue lost 0.7% and information technology declined 0.9%.
HSI closes 1.06% down
The Hong Kong stock market extended losses today, on tracking negative lead from Wall Street overnight, shrugging off the gain on Shanghai equity market which closed above 5,000 mark for the first time in seven years. The Hang Seng Index declined 291.73 points or 1.06% to finish at 27260.16, off an intra-day high of 27646.72 and day low of 27211.36. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 212.40 points, or 1.5%, to 13194.61 points. Turnover decreased to HK$158.45 billion from HK$195.2 billion on Thursday.
Among the blue chips, Hang Seng index heavyweight HSBC Holdings declined 0.9% after news it had agreed to pay $43 million to settle a Swiss money-laundering probe. CK Property (01113) dipped 3.3%. Belle (01880) gained 0.9% as its weighting on HSI will be lifted starting 8 June.
BYD Co closed down 11.1%, wiping out yesterday's 8.8% surge, after newly issued central-government regulations lowered access to the electric-vehicle manufacturing industry.
Oil stocks mostly down on tracking pullback of the international crude futures, with PetroChina Co down by 1.7%, China Petroleum & Chemical Corp down 2%, and Cnooc lower by 1.7%.
Banking shares also down due to profit taking after previous gains, with Bank of Communications Co lower by 3.1% after days of rally on news of its mixed-ownership reform plan submitted to authorities. China Construction Bank Corp was off 1.5% and Bank of China declined 1.3%.
Sensex ends down in volatile trade
Indian stock market closed last trading session of the week on a weak note. The 30-share Sensex provisionally ended down 43 points at 26,770 and the 50-share Nifty ended down 17 points at 8,114.
Markets become jittery in the late trades as investors remain cautious ahead of a key meeting of the OPEC cartel, which is expected to maintain its current production levels despite an oversupplied global market. Weakness in Index heavy weights with Tata Motors declining on weak Jaguar sales numbers coupled with losses in technology shares ahead of the US job data.
Foreign portfolio investors bought shares worth a net Rs 511.90 crore yesterday, 4 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 772.04 crore yesterday, 4 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index slipped 0.1% to 9340.13. South Korea's KOSPI dropped 0.23% to 2068.10. New Zealand's NZX50 was up 0.04% to 5867.90. Singapore's Straits Times index fell 0.34% at 333.673. Malaysia's KLCI added 0.2% to 1745.33. Indonesia's Jakarta Composite index gained 0.1% to 5100.57.
