Asia Pacific share market closed higher on Tuesday, 30 June 2015, as
investors chased for bargain hunting after the previous day's sharp
losses amid intensifying fears of a Greek sovereign default. The MSCI
Asia Pacific Index rebounded 0.9% to 146.36 after closing Monday at the
lowest since March 17.
Investors fled from stocks worldwide on Monday and retreated to the safety of government bonds after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the euro zone.
The rebound across the region was, however, limited amid lingering concerns of stalemated negotiations over Greece's debt and its looming default deadline later in the day. After the nation imposed capital controls and shut its banks, the focus Tuesday shifts to whether it will default, with 1.54 billion euro due to the International Monetary Fund. If Greece defaults and switches to a new currency, it's sure to shake global financial markets.
IMF has already said that failure in payment would immediately be in arrears rather than considered a default. IMF chief Christine Lagarde said she'll notify the fund's executive board promptly in case of any non-payment. ECB executive board member Benoit Coeure said that "the exit of Greece from the euro area, which was a theoretical point, can unfortunately no longer be ruled out." And, "this is the result of the choice of the Greek government to put an end to the discussion with its creditors and to call a referendum, prompting the Eurogroup not to extend the second aid program."
Investors are concerned that the crisis in Greece could spread to other euro countries that are struggling with high debt and austerity policies or to developing nations in Asia and South America.
S&P downgraded Greece's credit rating to CCC- from CCC. The rating agency noted that "Greece's decision to hold a referendum on official creditors' loan proposals as a further indication that the Tsipras government will prioritize domestic politics over financial and economic stability, commercial debt payments, and eurozone membership." S&P expected that Greece will likely miss the EUR 1.54b payment today. Even though that is not considered a default, "a commercial default is inevitable within the next six months."
Among Asian bourses
Nikkei rises modestly
Japanese share market closed modest higher, registering first gain in four straight sessions, with large-cap stocks as well as defensive stocks, including telecoms and retailers, being major gainers. Market gain was, however, limited amid lingering concerns of stalemated negotiations over Greece's debt and its looming default deadline later in the day. The Nikkei Stock Average recovered 125.78 points, or 0.63%, to finish at 20235.73. The Topix index of all Tokyo Stock Exchange First Section issues jumped 0.34%, or 5.58 points, to close at 1630.40. The measure finished the quarter 5.7% higher.
Shares of telecoms and retailers advanced the most in Tokyo as demand for defensive issue increased amid Greek uncertainty. NTT DoCoMo Inc rose 0.3% and KDDI Corp rose 2.1%. Meanwhile, convenience-store operators FamilyMart Co jumped 2.4%, Lawson Inc rose 2.1%, and e-commerce major Rakuten Inc recovered 2%. Aeon gained 6.8% on reports that the supermarket and mall operator will see its operating profit jumping roughly 50% on-year for its March-May quarter.
Financial stocks sunk further amid concerns about Europe, with Mitsubishi UFJ Financial Group Inc down 0.7% while Mizuho Financial Group Inc ended marginal 0.04% down. Sumitomo Mitsui Financial Group advanced 0.8% on reports that it is nearing a deal to buy General Electric's European private-equity finance unit for $2 billion.
Drugmaker Shionogi surged 7.8% after Credit Suisse upgraded the shares to outperform from neutral and upped its price target to 5,600 yen, citing expectations of higher profit growth in the 2017 fiscal year and maybe beyond.
Australia market rises modestly
Late hour rally helped the Australian share market to close higher for the first time in four consecutive sessions. Most of the ASX sectors closed higher, with shares of industrials, energy, and financial companies being major gainers. The benchmark S&P/ASX 200 Index advanced 36.50 points, or 0.67%, to end at 5459 after trading flat for most of the session, while the broader All Ordinaries Index rose 34.60 points, or 0.64% to 5451.20. The benchmark index registered a fourth-straight month of losses, down 4.8 per cent in June 2015. The benchmark index has lost 7.3% for the June quarter 2015.
Banks and financial stocks were sharp higher on bottom fishing after fears of a Greek sovereign default hit harshly yesterday. Australia & New Zealand Banking Group and Westpac Banking Corp both advanced 0.4% to A$32.20 and A$32.15, respectively. National Australia Bank added 0.3% to A$33.31 and Commonwealth Bank of Australia jumped 0.5% to A$85.13.
Iron ore miner Fortescue Metals Group dropped 1% to A$1.91 after the Federal Department of Industry and Science has cut its price forecast for iron ore in 2015 by 10 per cent to $US54.40 a tonne, citing a weak outlook for China's steel sector, its main market. The news came a day after Capital Economics forecast global iron ore prices to fall to into the $US30 a tonne range.
Shares of Qantas Airways advanced 4.6% to A$3.16 after posting a gain of more than two percentage points for its May load factor.
BlueScope Steel closed 8.3% higher at A$3 on the back of an upgrade of its shares to a buy rating by Bank of America-Merrill Lynch.
Kathmandu Holdings surged 25.9% to A$1.75 after Mr Duke's Briscoe Group said it would make a cash and scrip takeover bid for the outdoor clothing and adventurewear chain, valuing the retailer's shares around A$324 million.
China stocks rise after roller-coaster ride
The Mainland China share market ended sharp higher in roller-coaster trading on speculation the government is preparing measures to prop up the stock market after the key indices plunged more than 20% from a peak on 12 June 2015. The rebound was also propelled by media news that government is considering a delay in the initial public offering and brokerages called on investors and fund managers to take responsibility to stabilise the market after a weekend interest-rate cut failed to stem the bear-market rout. Shanghai Composite Index closed 224.19 points, or 5.5% higher at 4277.22. The index saw a swing from gains to losses of 9%.The Shenzhen Component Index gained 5.7% to close at 14,337.97 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, rallied 6.3% to end at 2,858.61 points. The Shanghai index slid 7.3% in June 2015
The Mainland investors chased for bargain hunting across the board after market-supporting news from the Beijing. Ministry of Finance announced details of pension funds investment in the stock market. Observers expected inflow of RMB450 billion into the market. In addition, talks of stock stamp duty would be cut, a number of insurers buying blue chips, and the Central Huijin Investment entering to support the market, etc. The PBoC also conducted reverse repo operation of RMB50 billion today, injecting liquidity into the market.
Shares of technology sector advanced on bottom hunting after a three-day 22% slide. Leshi Internet Information & Technology (Beijing) Co and Shenzhen O-film Tech Co both rebounded 10% daily limit.
Property developers were also higher, with Poly Real Estate Group Co. and Gemdale Corp both surging more than 6%.
Hong Kong stocks jumps 1.09%
The Hong Kong stock market ended higher, clawing back some of the previous day's losses, on tracking rebound in the Mainland China market and other regional bourses. Market gain was, however, limited amid lingering concerns of stalemated negotiations over Greece's debt and its looming default deadline later in the day. The benchmark index opened slightly lower and fell to an intra-day low of 25,885. But the Shanghai index staged strong rebound on the remarks of the China Securities Regulatory Commission (CSRC), boosting HK market by more than 500 points at one stage. The Hang Seng Index recovered 283.05 points or 1.09% to finish at 26250.03, off an intra-day high of 26470.44 and day low of 25885.66. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, rebounded 286.57 points, or 2.26%, to 12981.23 points. Turnover reduced to HK$155.9 billion from HK$186 billion on Monday.
Hong Kong listed Chinese financial players were higher. BankComm (03328) put on 4% to HK$8.08. BOC (03988) gained 2.4% to HK$5.04. CCB (00939) added 2.2% to HK$7.08. ICBC (01398) rose 1% to HK$6.16. China Life (02628) rebounded 3.4% to HK$33.75. Ping An (02318) jumped 2.2% to HK$104.7. StanChart (02888) added 1% to HK$125.9. HSBC (00005) fell 0.1% to HK$70.15 on worries of its HK$46.8 billion exposure to Greece.
Macau casino operators continued their weakness. Galaxy Ent (00027) softened 0.5% to HK$30.9. Sands China (01928) slipped 2.1% to HK$26.1. It was the worst blue-chip loser.
Sensex ends edge higher
Indian benchmark indices surged towards the fag end of the trading session after moving in a narrow range during most part of the trading session. The up move for key indices in late trade materialised as European stocks reversed initial losses and trading in US index futures indicated a firm opening of US stocks later in the global day. European stocks reversed initial losses after a Greek newspaper reported that last-minute efforts aimed at bringing Greece and its creditors back to the negotiating table are underway. Negotiations between Greece and its creditors collapsed over the weekend after Greece's Prime Minister Alexis Tsipras on Friday, 26 June 2015, unexpectedly called for a referendum on whether to accept reform measures demanded by the country's lenders. The barometer index, the S&P BSE Sensex, was provisionally up 145.89 points or 0.53% to 27,791.04. The BSE Mid-Cap index was up 1.33%. The BSE Small-Cap index was up 1.07%. Both these indices outperformed the Sensex.
Bharti Airtel edged higher after the company said that it has become the third largest mobile operator in the world in terms of subscribers. IT shares were mixed. Tech Mahindra extended a steep slide registered during the previous trading session that was triggered by the company issuing a warning that the company's Q1 June 2015 results have some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxation, depreciation and amortization) margin of the company on sequential basis.
Meanwhile, CEO of Airbus Defence and Space Mr. Bernhard Gerwert expressed Airbus's keen interest in becoming a partner in the "Make in India" initiative through a cluster approach with regional partners, according to a statement issued by Indian Prime Minister's Office today, 30 June 2015. Bernhard held a meeting with Prime Minister Narendra Modi today, 30 June 2015.
Foreign portfolio investors sold Indian shares worth a net Rs 711.88 crore yesterday, 29 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 906.38 crore yesterday, 29 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.94% to 9323.02. South Korea's KOSPI added 0.67% to 2074.20. New Zealand's NZX50 climbed up 0.37% to 5726.96. Singapore's Straits Times index added 1.13% at 3317.33. Malaysia's KLCI jumped 0.87% to 1706.64. Indonesia's Jakarta Composite index was down 0.58% to 4910.66.
Investors fled from stocks worldwide on Monday and retreated to the safety of government bonds after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the euro zone.
The rebound across the region was, however, limited amid lingering concerns of stalemated negotiations over Greece's debt and its looming default deadline later in the day. After the nation imposed capital controls and shut its banks, the focus Tuesday shifts to whether it will default, with 1.54 billion euro due to the International Monetary Fund. If Greece defaults and switches to a new currency, it's sure to shake global financial markets.
IMF has already said that failure in payment would immediately be in arrears rather than considered a default. IMF chief Christine Lagarde said she'll notify the fund's executive board promptly in case of any non-payment. ECB executive board member Benoit Coeure said that "the exit of Greece from the euro area, which was a theoretical point, can unfortunately no longer be ruled out." And, "this is the result of the choice of the Greek government to put an end to the discussion with its creditors and to call a referendum, prompting the Eurogroup not to extend the second aid program."
Investors are concerned that the crisis in Greece could spread to other euro countries that are struggling with high debt and austerity policies or to developing nations in Asia and South America.
S&P downgraded Greece's credit rating to CCC- from CCC. The rating agency noted that "Greece's decision to hold a referendum on official creditors' loan proposals as a further indication that the Tsipras government will prioritize domestic politics over financial and economic stability, commercial debt payments, and eurozone membership." S&P expected that Greece will likely miss the EUR 1.54b payment today. Even though that is not considered a default, "a commercial default is inevitable within the next six months."
Among Asian bourses
Nikkei rises modestly
Japanese share market closed modest higher, registering first gain in four straight sessions, with large-cap stocks as well as defensive stocks, including telecoms and retailers, being major gainers. Market gain was, however, limited amid lingering concerns of stalemated negotiations over Greece's debt and its looming default deadline later in the day. The Nikkei Stock Average recovered 125.78 points, or 0.63%, to finish at 20235.73. The Topix index of all Tokyo Stock Exchange First Section issues jumped 0.34%, or 5.58 points, to close at 1630.40. The measure finished the quarter 5.7% higher.
Shares of telecoms and retailers advanced the most in Tokyo as demand for defensive issue increased amid Greek uncertainty. NTT DoCoMo Inc rose 0.3% and KDDI Corp rose 2.1%. Meanwhile, convenience-store operators FamilyMart Co jumped 2.4%, Lawson Inc rose 2.1%, and e-commerce major Rakuten Inc recovered 2%. Aeon gained 6.8% on reports that the supermarket and mall operator will see its operating profit jumping roughly 50% on-year for its March-May quarter.
Financial stocks sunk further amid concerns about Europe, with Mitsubishi UFJ Financial Group Inc down 0.7% while Mizuho Financial Group Inc ended marginal 0.04% down. Sumitomo Mitsui Financial Group advanced 0.8% on reports that it is nearing a deal to buy General Electric's European private-equity finance unit for $2 billion.
Drugmaker Shionogi surged 7.8% after Credit Suisse upgraded the shares to outperform from neutral and upped its price target to 5,600 yen, citing expectations of higher profit growth in the 2017 fiscal year and maybe beyond.
Australia market rises modestly
Late hour rally helped the Australian share market to close higher for the first time in four consecutive sessions. Most of the ASX sectors closed higher, with shares of industrials, energy, and financial companies being major gainers. The benchmark S&P/ASX 200 Index advanced 36.50 points, or 0.67%, to end at 5459 after trading flat for most of the session, while the broader All Ordinaries Index rose 34.60 points, or 0.64% to 5451.20. The benchmark index registered a fourth-straight month of losses, down 4.8 per cent in June 2015. The benchmark index has lost 7.3% for the June quarter 2015.
Banks and financial stocks were sharp higher on bottom fishing after fears of a Greek sovereign default hit harshly yesterday. Australia & New Zealand Banking Group and Westpac Banking Corp both advanced 0.4% to A$32.20 and A$32.15, respectively. National Australia Bank added 0.3% to A$33.31 and Commonwealth Bank of Australia jumped 0.5% to A$85.13.
Iron ore miner Fortescue Metals Group dropped 1% to A$1.91 after the Federal Department of Industry and Science has cut its price forecast for iron ore in 2015 by 10 per cent to $US54.40 a tonne, citing a weak outlook for China's steel sector, its main market. The news came a day after Capital Economics forecast global iron ore prices to fall to into the $US30 a tonne range.
Shares of Qantas Airways advanced 4.6% to A$3.16 after posting a gain of more than two percentage points for its May load factor.
BlueScope Steel closed 8.3% higher at A$3 on the back of an upgrade of its shares to a buy rating by Bank of America-Merrill Lynch.
Kathmandu Holdings surged 25.9% to A$1.75 after Mr Duke's Briscoe Group said it would make a cash and scrip takeover bid for the outdoor clothing and adventurewear chain, valuing the retailer's shares around A$324 million.
China stocks rise after roller-coaster ride
The Mainland China share market ended sharp higher in roller-coaster trading on speculation the government is preparing measures to prop up the stock market after the key indices plunged more than 20% from a peak on 12 June 2015. The rebound was also propelled by media news that government is considering a delay in the initial public offering and brokerages called on investors and fund managers to take responsibility to stabilise the market after a weekend interest-rate cut failed to stem the bear-market rout. Shanghai Composite Index closed 224.19 points, or 5.5% higher at 4277.22. The index saw a swing from gains to losses of 9%.The Shenzhen Component Index gained 5.7% to close at 14,337.97 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, rallied 6.3% to end at 2,858.61 points. The Shanghai index slid 7.3% in June 2015
The Mainland investors chased for bargain hunting across the board after market-supporting news from the Beijing. Ministry of Finance announced details of pension funds investment in the stock market. Observers expected inflow of RMB450 billion into the market. In addition, talks of stock stamp duty would be cut, a number of insurers buying blue chips, and the Central Huijin Investment entering to support the market, etc. The PBoC also conducted reverse repo operation of RMB50 billion today, injecting liquidity into the market.
Shares of technology sector advanced on bottom hunting after a three-day 22% slide. Leshi Internet Information & Technology (Beijing) Co and Shenzhen O-film Tech Co both rebounded 10% daily limit.
Property developers were also higher, with Poly Real Estate Group Co. and Gemdale Corp both surging more than 6%.
Hong Kong stocks jumps 1.09%
The Hong Kong stock market ended higher, clawing back some of the previous day's losses, on tracking rebound in the Mainland China market and other regional bourses. Market gain was, however, limited amid lingering concerns of stalemated negotiations over Greece's debt and its looming default deadline later in the day. The benchmark index opened slightly lower and fell to an intra-day low of 25,885. But the Shanghai index staged strong rebound on the remarks of the China Securities Regulatory Commission (CSRC), boosting HK market by more than 500 points at one stage. The Hang Seng Index recovered 283.05 points or 1.09% to finish at 26250.03, off an intra-day high of 26470.44 and day low of 25885.66. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, rebounded 286.57 points, or 2.26%, to 12981.23 points. Turnover reduced to HK$155.9 billion from HK$186 billion on Monday.
Hong Kong listed Chinese financial players were higher. BankComm (03328) put on 4% to HK$8.08. BOC (03988) gained 2.4% to HK$5.04. CCB (00939) added 2.2% to HK$7.08. ICBC (01398) rose 1% to HK$6.16. China Life (02628) rebounded 3.4% to HK$33.75. Ping An (02318) jumped 2.2% to HK$104.7. StanChart (02888) added 1% to HK$125.9. HSBC (00005) fell 0.1% to HK$70.15 on worries of its HK$46.8 billion exposure to Greece.
Macau casino operators continued their weakness. Galaxy Ent (00027) softened 0.5% to HK$30.9. Sands China (01928) slipped 2.1% to HK$26.1. It was the worst blue-chip loser.
Sensex ends edge higher
Indian benchmark indices surged towards the fag end of the trading session after moving in a narrow range during most part of the trading session. The up move for key indices in late trade materialised as European stocks reversed initial losses and trading in US index futures indicated a firm opening of US stocks later in the global day. European stocks reversed initial losses after a Greek newspaper reported that last-minute efforts aimed at bringing Greece and its creditors back to the negotiating table are underway. Negotiations between Greece and its creditors collapsed over the weekend after Greece's Prime Minister Alexis Tsipras on Friday, 26 June 2015, unexpectedly called for a referendum on whether to accept reform measures demanded by the country's lenders. The barometer index, the S&P BSE Sensex, was provisionally up 145.89 points or 0.53% to 27,791.04. The BSE Mid-Cap index was up 1.33%. The BSE Small-Cap index was up 1.07%. Both these indices outperformed the Sensex.
Bharti Airtel edged higher after the company said that it has become the third largest mobile operator in the world in terms of subscribers. IT shares were mixed. Tech Mahindra extended a steep slide registered during the previous trading session that was triggered by the company issuing a warning that the company's Q1 June 2015 results have some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxation, depreciation and amortization) margin of the company on sequential basis.
Meanwhile, CEO of Airbus Defence and Space Mr. Bernhard Gerwert expressed Airbus's keen interest in becoming a partner in the "Make in India" initiative through a cluster approach with regional partners, according to a statement issued by Indian Prime Minister's Office today, 30 June 2015. Bernhard held a meeting with Prime Minister Narendra Modi today, 30 June 2015.
Foreign portfolio investors sold Indian shares worth a net Rs 711.88 crore yesterday, 29 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 906.38 crore yesterday, 29 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.94% to 9323.02. South Korea's KOSPI added 0.67% to 2074.20. New Zealand's NZX50 climbed up 0.37% to 5726.96. Singapore's Straits Times index added 1.13% at 3317.33. Malaysia's KLCI jumped 0.87% to 1706.64. Indonesia's Jakarta Composite index was down 0.58% to 4910.66.
