Asia pacific share market declined on Tuesday, 28 July 2015, echoing
losses on the Wall Street overnight and concerns over China share price
volatility. The MSCI Asia Pacific Index declined 0.5% to 140.26,
extending its five-day fall to 3.5%.
US stocks fell overnight after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) has been scheduled on Tuesday, 28 July 2015, and Wednesday, 29 July 2015, to decide on interest rates in the United States. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
Among Asian bourses
Australia stocks end softer
The Australian share market ended softer, as losses in bullion, technology, consumer discretionary, industrial and material blue chip stocks were more than offset by gains in energy, utilities and healthcare stocks. The benchmark S&P/ASX 200 Index ended 5.20 points, or 0.09%, down at 5584.70, after having swung between a decline of as much as 1.1% and a gain of 0.3% during the course of the session. The broader All Ordinaries Index lost 8.20 points, or 0.15%, to 5571. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was up 3.1% to 16.34, suggesting a 4.5% swing in the equity benchmark index in the next 30 days.
Gold stocks handed back some of Monday's strong gains as spot prices for the metal slipped in Asia trading to remain below the psychological level of $1,100 a troy ounce.
Nikkei falls on weak offshore lead
Japanese share market eased, as risk sentiment hurt by tracking losses on the Wall Street overnight and concerns over China share price volatility. However, market trimmed losses late afternoon on reports Bank of Japan share-buying. The Nikkei Stock Average declined 21.21 points, or 0.1%, to end at 20328.89 points. The broader Topix index lost 0.52%, or 8.44 points, to close at 1629.46 points.
China market extends losses
Mainland China's stock market ended lower for a third-straight day in volatile trade, despite an unprecedented effort by the government of the world's second largest economy to shore up prices following a month-long rout. The benchmark Shanghai Composite Index ended 62.56 points, or 1.68%, down at 3663 points, after falling as much as 5% and rising as much as 1% earlier. The index has shed 11% since Friday and down nearly 30% from its mid-June high. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 2.24%, or 48.39 points, to 2111.70 points.
The People's Bank of China on Tuesday promised to maintain its policy stance in a rare statement. At the same time it injected CNY50 billion into the system. The PBOC's actions are being interpreted as a response to Monday's sharp share-market fall and a demonstration of Beijing's determination to support the stock market. Overall prices remain stable, the PBOC said in an early morning statement aimed at dismissing fears about a monetary-policy shift as a result of recent rising pork prices.
Hong Kong market ends higher
The Hong Kong stock market ended higher, as investors chased for bottom fishing on heavily battered stocks after Beijing vows to step up purchases of stocks. The benchmark opened 82 points lower and saw its losses widen to more than 200 points as the Shanghai market lost the 3,600 mark. But it quickly rebounded and soared nearly 600 points at another point. The Hang Seng Index ended 151.98 points, or 0.62%, higher at 24503.94 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, decreased 57.63 points, or 0.51%, to 11173.04 points. Turnover reduced slightly to HK$115.27 billion from HK$116 billion on Monday.
Sensex drifts lower
Indian index heavyweight and housing finance major HDFC led losses for key benchmark indices. Shares of the housing finance major edged lower after the company reported a muted growth in bottom line in Q1 June 2015. The barometer index, the S&P BSE Sensex, was provisionally off 102.76 points or 0.37% to 27,458.62. The market sentiment was edgy after the latest data showed that foreign portfolio investors (FPIs) pressed sales of Indian stocks yesterday, 27 July 2015. Shares of upstream oil companies declined as crude oil prices declined. Most power generation stocks declined.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said yesterday, 27 July 2015, that inflation targets should not be changed every three years as that would mean changing goal posts as soon as the system starts to internalize it.
Foreign portfolio investors sold shares worth a net Rs 859.94 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 238.66 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.3% to 8582.49. South Korea's KOSPI was marginally higher at 2039.10. New Zealand's NZX50 dropped 0.4% to 5848.39. Singapore's Straits Times index declined 1% at 3281.09. Indonesia's Jakarta Composite index lost 1.2% to 4714.76. Malaysia's KLCI fell 0.6% to 1699.70.
US stocks fell overnight after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) has been scheduled on Tuesday, 28 July 2015, and Wednesday, 29 July 2015, to decide on interest rates in the United States. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
Among Asian bourses
Australia stocks end softer
The Australian share market ended softer, as losses in bullion, technology, consumer discretionary, industrial and material blue chip stocks were more than offset by gains in energy, utilities and healthcare stocks. The benchmark S&P/ASX 200 Index ended 5.20 points, or 0.09%, down at 5584.70, after having swung between a decline of as much as 1.1% and a gain of 0.3% during the course of the session. The broader All Ordinaries Index lost 8.20 points, or 0.15%, to 5571. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was up 3.1% to 16.34, suggesting a 4.5% swing in the equity benchmark index in the next 30 days.
Gold stocks handed back some of Monday's strong gains as spot prices for the metal slipped in Asia trading to remain below the psychological level of $1,100 a troy ounce.
Nikkei falls on weak offshore lead
Japanese share market eased, as risk sentiment hurt by tracking losses on the Wall Street overnight and concerns over China share price volatility. However, market trimmed losses late afternoon on reports Bank of Japan share-buying. The Nikkei Stock Average declined 21.21 points, or 0.1%, to end at 20328.89 points. The broader Topix index lost 0.52%, or 8.44 points, to close at 1629.46 points.
China market extends losses
Mainland China's stock market ended lower for a third-straight day in volatile trade, despite an unprecedented effort by the government of the world's second largest economy to shore up prices following a month-long rout. The benchmark Shanghai Composite Index ended 62.56 points, or 1.68%, down at 3663 points, after falling as much as 5% and rising as much as 1% earlier. The index has shed 11% since Friday and down nearly 30% from its mid-June high. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 2.24%, or 48.39 points, to 2111.70 points.
The People's Bank of China on Tuesday promised to maintain its policy stance in a rare statement. At the same time it injected CNY50 billion into the system. The PBOC's actions are being interpreted as a response to Monday's sharp share-market fall and a demonstration of Beijing's determination to support the stock market. Overall prices remain stable, the PBOC said in an early morning statement aimed at dismissing fears about a monetary-policy shift as a result of recent rising pork prices.
Hong Kong market ends higher
The Hong Kong stock market ended higher, as investors chased for bottom fishing on heavily battered stocks after Beijing vows to step up purchases of stocks. The benchmark opened 82 points lower and saw its losses widen to more than 200 points as the Shanghai market lost the 3,600 mark. But it quickly rebounded and soared nearly 600 points at another point. The Hang Seng Index ended 151.98 points, or 0.62%, higher at 24503.94 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, decreased 57.63 points, or 0.51%, to 11173.04 points. Turnover reduced slightly to HK$115.27 billion from HK$116 billion on Monday.
Sensex drifts lower
Indian index heavyweight and housing finance major HDFC led losses for key benchmark indices. Shares of the housing finance major edged lower after the company reported a muted growth in bottom line in Q1 June 2015. The barometer index, the S&P BSE Sensex, was provisionally off 102.76 points or 0.37% to 27,458.62. The market sentiment was edgy after the latest data showed that foreign portfolio investors (FPIs) pressed sales of Indian stocks yesterday, 27 July 2015. Shares of upstream oil companies declined as crude oil prices declined. Most power generation stocks declined.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said yesterday, 27 July 2015, that inflation targets should not be changed every three years as that would mean changing goal posts as soon as the system starts to internalize it.
Foreign portfolio investors sold shares worth a net Rs 859.94 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 238.66 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.3% to 8582.49. South Korea's KOSPI was marginally higher at 2039.10. New Zealand's NZX50 dropped 0.4% to 5848.39. Singapore's Straits Times index declined 1% at 3281.09. Indonesia's Jakarta Composite index lost 1.2% to 4714.76. Malaysia's KLCI fell 0.6% to 1699.70.
