Asia Pacific share market closed mixed in lackluster trading on
Thursday, 23 July 2015, on following losses on the Wall Street
overnight. Meanwhile mounting concerns that the US policy makers to
start rising interest rates this year also kept investors in a defensive
mood. The MSCI Asia Pacific Index rose 0.2% to 143.94, after dropping
0.2% earlier.
Wall Street declined for a second straight session on Wednesday due to disappointing tech earnings headlined by Apple and Microsoft. Both companies delivered disappointing quarterly results or outlooks. The Nasdaq Composite was the biggest loser, down 0.7%, while the blue-chip Dow and the S&P 500 shed 0.4 and 0.2%, respectively.
Investors have switched their focus back to U.S. monetary policy, with a better-than-forecast housing report Wednesday pushing a 50% chance of a rate hike from Fed in September. But there are risks of external shock, slowdown in improvement labor market and inflation that might delay the rate hike.
The dollar's resurgence is undermining commodity prices as the World Bank sees abundant supply clashing with weakening global demand. The spot gold edged up modestly to $1,096.70 an ounce in early Asian trade after chalking up its 10th straight day of losses, in the longest losing streak for the precious metal in almost 20 years. In the energy space, benchmark U.S. crude was up 11 cents to $49.30 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.67 to close at $49.19 on Wednesday. Brent crude, a benchmark for international oils, was unchanged at $56.13 a barrel in London.
Over in Europe, the Greece's Parliament passed legislation on a second batch of reforms demanded by international creditors, clearing the way for final talks on a third multi-billion euro bailout. Separately, ECB raised the limit on Emergency Liquidity Assistance for Greek banks by EUR 900m.
New Zealand central bank RBNZ cut OCR by 25bps to 3.00%. The central bank noted in the accompanying statement that the rate cut was "warranted by the softening in the economic outlook and low inflation." And, "at this point, some further easing seems likely." Regarding the exchange rate, RBNZ maintained that "while the currency depreciation will provide support to the export and import competing sectors, further depreciation is necessary given the weakness in export commodity prices."
Among Asian bourses
Nikkei jumps on earning optimism
Japanese share market closed higher, as strength in airlines, paper product makers, retailer, and tourism-related share were more than offset by losses in resources and energy stocks. The Nikkei Stock Average retreated 248.30 points, or 1.19%, to end at 20593.67 points. The broader Topix index added 0.57%, or 9.51 points, to close at 1658.53 points.
Stocks related to retailer and tourism-related share advanced after the Japan National Tourism Organization said on Wednesday that foreigners travelled to Japan jumped 46% on year to 9.14 million during the first half of this year. Department store stocks climbed, with Isetan Mitsukoshi Holdings rising 2.1% and Takashimaya Co 2.5%. Disney Resort operator Oriental Land Co rose 2.3%. Appliance retailer Bic Camera added 7.5%, while duty-free device seller Laox Co. added 6.7%.
Shares of airline carrier jumped on the optimism that lower fuel costs will boost earnings. ANA Holdings Inc. climbed 2.3%. ANA Holdings jumped 2.3%, while Japan Airlines Co. rose 1.6%.
Energy shares tumbled amid the rout in oil prices, with energy explorer Inpex Corp. dropping 1.4% to the lowest closing price since April.
Nidec Corp. surged 8.7% after reporting better-than-expected earnings. The electronic-parts manufacturer reported a first-quarter operating profit of 31.1 billion yen, above estimates of 30.6 billion yen.
Japan's Exports rose 9.5% year over year, while Imports fell 2.9%, as a result trade deficit was Y69.0 billion in June, down from Y834.1 billion in the year-ago period, according to trade statistics from the Ministry of Finance released on Thursday.
Resources stocks weigh down Australia Market
The Australian share market finished down for second straight day, with shares of resources and energy blue-chip companies leading declines after pullback in commodity prices. The benchmark S&P/ASX 200 Index dropped 24.30 points, or 0.43%, to 5590.30 points, while the broader All Ordinaries Index lost 22.20 points, or 0.4%, to 5581.30 points.
Shares of material and resources stocks extended fall, with iron ore miners being major losers after an overnight fall in iron ore to just above US$50 per tonne. BHP Billiton fell 2.9% to A$25.50 and Rio Tinto was down 1.9% to A$51.20.
Fortescue Metal dropped 1.9% to A$1.645 after a cautious production update. Australia's third-largest iron ore miner guided that it would produce 155 million to 160 million tonnes in financial 2015, but in April this year increased its forecast to - up to 165mtpa, helping it to spread costs across a wider production base.
Energy stocks tumbled on tracking plunge in crude oil prices. Brent was down 2 cents at $US56.11 a barrel, after falling more than 1.5% overnight, while US crude oil rose 13 cents to $US49.32, after dropping $US49.19 on Wednesday. Front-month WTI prices are down 19.7% from this year's highest close on June 10. Energy heavyweight Woodside Petroleum dropped 1.4% to A$33.61 and Santos sank 1.9% to A$7.11.
Investment bank Macquarie Group jumped 0.4% to A$84.81 after improving its full year profit guidance. Macquarie said its 2016 full-year result would be "slightly up" on this year's A$1.6 billion profit. Macquarie also upgraded its guidance for the asset management unit, its largest contributor to earnings, saying it now expected that unit to post a higher full-year result than in 2015. It had previously said income from asset management in 2016 would be "broadly in line" with this year's result. Macquarie on Thursday also noted that its surplus capital above minimum regulatory capital requirements stood at A$2.4 billion as at June 30, down from A$2.7 billion at the end of March.
CIMIC was up 1.7% at A$23.76 after construction and contract mining giant reaffirmed its guidance for full-year net profits of between A$450 million and A$520 million. Construction group CIMIC has posted a 12% drop in first-half net profits to A$257.2 million on 4% drop in revenue to A$8.68 billion as income from construction and contract mining projects dropped.
Gold miner Newcrest Mining rebounded 2.7% to A$11.84 after announcing that it has achieved its full-year production targets for gold and copper for 2015 financial year. The Melbourne-based miner produced 2.42 million ounces of gold during the year, and this was at the top end of guidance to deliver 2.3 million to 2.5 million ounces in the year to June 30.
China market rises for sixth day
Mainland China's stock market advanced for sixth consecutive session on the back of government unprecedented intervention measures. Sentiment among Chinese investors was lifted after the Shanghai Securities News that China shouldn't withdraw stock support measures near-term. The benchmark Shanghai Composite Index advanced 97.88 points, or 2.43%, to finish at 4123.92 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 2.83%, or 64.67 points, to 2352.65 points.
The benchmark gauge has rebounded 18% since July 8, following a 32% plunge that wiped out almost $4 trillion, as policy makers introduced a spate of measures to bolster equities. Beijing officials banned major shareholders from selling stakes, suspended initial public offerings and gave a government agency access to more than $480 billion of borrowed funds to help finance equity purchases.
All 10 SSE sectors advanced, with shares related to material producers surged the most ahead of Friday's flash manufacturing data. Yunnan Tin Co. surged by the 10% daily limit, while Anhui Conch Cement Co. rose 4.7%.
Shares of brokerage companies paced gains among financial, with Citic Securities Co. and Haitong Securities Co. both advancing at least 2%. Ping An Insurance (Group) Co. jumped 4.2% after the Chinese insurer expects first-half net profits to rise 62%. China Construction Bank ended up 1.1%, while Agricultural Bank of China and Bank of Communications bumped up 0.5 and 1.4%, respectively.
Train maker CRRC Corp rose 1.6% in Shanghai after winning a 4.84 billion yuan order from Hong Kong transportation firm MTR Crop.
Hong Kong market jumps 0.46%
The Hong Kong stock market closed modest higher, on following the gains in Mainland China A-share market as a result of government support and purchases by funds and large shareholders. The benchmark opened firmer and reversed its trend at one point. With the rally of A-share market above the 4,100 level, local sentiment was also boosted. The Hang Seng Index ended up 116.23 points, or 0.46%, to finish at 25398.85 points, off an intra-day low of 25250.36. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, jumped 100.20 points, or 0.85%, to 11834.47 points. Turnover reduced to HK$79.8 billion from HK$81.7 billion on Wednesday.
Shares of shipping and aviation counters jumped after crude oil price dropped below US$50 level and hit fresh 3-month low. China Ship Dev (01138) and China South Air (01055) gained 2% and 4% to HK$5.33 and HK$9 respectively.
Casino stocks advanced, with Sands China leading the rally, up 8% to HK$33.35 after reported strong earnings for 2Q. Barclays Research expects the company to raise its dividend payout. Galaxy Ent (00027) shot up 4.5% to HK$35.85. Macau Legend (01680) jumped 4.7% to HK$2.43 after the company said it was granted a gaming concession by the government of Republic of Cabo Verde.
Sensex slips
Indian stock market ended lower after altering between positive and negative territory. As per provisional figures, the S&P BSE Sensex was down 143.41 points or 0.5% at 28,361.52. The CNX Nifty was down 47 points or 0.54% at 8,586.50, as per provisional figures. Investors remained sidelines in the absence of a positive surprise from the quarterly earnings.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 450.32 crore yesterday, 22 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 351.77 crore yesterday, 22 July 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.4% to 8791.12. South Korea's KOSPI added 0.02% to 2065.07. New Zealand's NZX50 fell 0.5% to 5901.30. Singapore's Straits Times index declined 0.1% at 3356.37. Indonesia's Jakarta Composite index lost 0.1% to 4902.85. Malaysia's KLCI fell 0.4% to 1722.44
Wall Street declined for a second straight session on Wednesday due to disappointing tech earnings headlined by Apple and Microsoft. Both companies delivered disappointing quarterly results or outlooks. The Nasdaq Composite was the biggest loser, down 0.7%, while the blue-chip Dow and the S&P 500 shed 0.4 and 0.2%, respectively.
Investors have switched their focus back to U.S. monetary policy, with a better-than-forecast housing report Wednesday pushing a 50% chance of a rate hike from Fed in September. But there are risks of external shock, slowdown in improvement labor market and inflation that might delay the rate hike.
The dollar's resurgence is undermining commodity prices as the World Bank sees abundant supply clashing with weakening global demand. The spot gold edged up modestly to $1,096.70 an ounce in early Asian trade after chalking up its 10th straight day of losses, in the longest losing streak for the precious metal in almost 20 years. In the energy space, benchmark U.S. crude was up 11 cents to $49.30 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.67 to close at $49.19 on Wednesday. Brent crude, a benchmark for international oils, was unchanged at $56.13 a barrel in London.
Over in Europe, the Greece's Parliament passed legislation on a second batch of reforms demanded by international creditors, clearing the way for final talks on a third multi-billion euro bailout. Separately, ECB raised the limit on Emergency Liquidity Assistance for Greek banks by EUR 900m.
New Zealand central bank RBNZ cut OCR by 25bps to 3.00%. The central bank noted in the accompanying statement that the rate cut was "warranted by the softening in the economic outlook and low inflation." And, "at this point, some further easing seems likely." Regarding the exchange rate, RBNZ maintained that "while the currency depreciation will provide support to the export and import competing sectors, further depreciation is necessary given the weakness in export commodity prices."
Among Asian bourses
Nikkei jumps on earning optimism
Japanese share market closed higher, as strength in airlines, paper product makers, retailer, and tourism-related share were more than offset by losses in resources and energy stocks. The Nikkei Stock Average retreated 248.30 points, or 1.19%, to end at 20593.67 points. The broader Topix index added 0.57%, or 9.51 points, to close at 1658.53 points.
Stocks related to retailer and tourism-related share advanced after the Japan National Tourism Organization said on Wednesday that foreigners travelled to Japan jumped 46% on year to 9.14 million during the first half of this year. Department store stocks climbed, with Isetan Mitsukoshi Holdings rising 2.1% and Takashimaya Co 2.5%. Disney Resort operator Oriental Land Co rose 2.3%. Appliance retailer Bic Camera added 7.5%, while duty-free device seller Laox Co. added 6.7%.
Shares of airline carrier jumped on the optimism that lower fuel costs will boost earnings. ANA Holdings Inc. climbed 2.3%. ANA Holdings jumped 2.3%, while Japan Airlines Co. rose 1.6%.
Energy shares tumbled amid the rout in oil prices, with energy explorer Inpex Corp. dropping 1.4% to the lowest closing price since April.
Nidec Corp. surged 8.7% after reporting better-than-expected earnings. The electronic-parts manufacturer reported a first-quarter operating profit of 31.1 billion yen, above estimates of 30.6 billion yen.
Japan's Exports rose 9.5% year over year, while Imports fell 2.9%, as a result trade deficit was Y69.0 billion in June, down from Y834.1 billion in the year-ago period, according to trade statistics from the Ministry of Finance released on Thursday.
Resources stocks weigh down Australia Market
The Australian share market finished down for second straight day, with shares of resources and energy blue-chip companies leading declines after pullback in commodity prices. The benchmark S&P/ASX 200 Index dropped 24.30 points, or 0.43%, to 5590.30 points, while the broader All Ordinaries Index lost 22.20 points, or 0.4%, to 5581.30 points.
Shares of material and resources stocks extended fall, with iron ore miners being major losers after an overnight fall in iron ore to just above US$50 per tonne. BHP Billiton fell 2.9% to A$25.50 and Rio Tinto was down 1.9% to A$51.20.
Fortescue Metal dropped 1.9% to A$1.645 after a cautious production update. Australia's third-largest iron ore miner guided that it would produce 155 million to 160 million tonnes in financial 2015, but in April this year increased its forecast to - up to 165mtpa, helping it to spread costs across a wider production base.
Energy stocks tumbled on tracking plunge in crude oil prices. Brent was down 2 cents at $US56.11 a barrel, after falling more than 1.5% overnight, while US crude oil rose 13 cents to $US49.32, after dropping $US49.19 on Wednesday. Front-month WTI prices are down 19.7% from this year's highest close on June 10. Energy heavyweight Woodside Petroleum dropped 1.4% to A$33.61 and Santos sank 1.9% to A$7.11.
Investment bank Macquarie Group jumped 0.4% to A$84.81 after improving its full year profit guidance. Macquarie said its 2016 full-year result would be "slightly up" on this year's A$1.6 billion profit. Macquarie also upgraded its guidance for the asset management unit, its largest contributor to earnings, saying it now expected that unit to post a higher full-year result than in 2015. It had previously said income from asset management in 2016 would be "broadly in line" with this year's result. Macquarie on Thursday also noted that its surplus capital above minimum regulatory capital requirements stood at A$2.4 billion as at June 30, down from A$2.7 billion at the end of March.
CIMIC was up 1.7% at A$23.76 after construction and contract mining giant reaffirmed its guidance for full-year net profits of between A$450 million and A$520 million. Construction group CIMIC has posted a 12% drop in first-half net profits to A$257.2 million on 4% drop in revenue to A$8.68 billion as income from construction and contract mining projects dropped.
Gold miner Newcrest Mining rebounded 2.7% to A$11.84 after announcing that it has achieved its full-year production targets for gold and copper for 2015 financial year. The Melbourne-based miner produced 2.42 million ounces of gold during the year, and this was at the top end of guidance to deliver 2.3 million to 2.5 million ounces in the year to June 30.
China market rises for sixth day
Mainland China's stock market advanced for sixth consecutive session on the back of government unprecedented intervention measures. Sentiment among Chinese investors was lifted after the Shanghai Securities News that China shouldn't withdraw stock support measures near-term. The benchmark Shanghai Composite Index advanced 97.88 points, or 2.43%, to finish at 4123.92 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 2.83%, or 64.67 points, to 2352.65 points.
The benchmark gauge has rebounded 18% since July 8, following a 32% plunge that wiped out almost $4 trillion, as policy makers introduced a spate of measures to bolster equities. Beijing officials banned major shareholders from selling stakes, suspended initial public offerings and gave a government agency access to more than $480 billion of borrowed funds to help finance equity purchases.
All 10 SSE sectors advanced, with shares related to material producers surged the most ahead of Friday's flash manufacturing data. Yunnan Tin Co. surged by the 10% daily limit, while Anhui Conch Cement Co. rose 4.7%.
Shares of brokerage companies paced gains among financial, with Citic Securities Co. and Haitong Securities Co. both advancing at least 2%. Ping An Insurance (Group) Co. jumped 4.2% after the Chinese insurer expects first-half net profits to rise 62%. China Construction Bank ended up 1.1%, while Agricultural Bank of China and Bank of Communications bumped up 0.5 and 1.4%, respectively.
Train maker CRRC Corp rose 1.6% in Shanghai after winning a 4.84 billion yuan order from Hong Kong transportation firm MTR Crop.
Hong Kong market jumps 0.46%
The Hong Kong stock market closed modest higher, on following the gains in Mainland China A-share market as a result of government support and purchases by funds and large shareholders. The benchmark opened firmer and reversed its trend at one point. With the rally of A-share market above the 4,100 level, local sentiment was also boosted. The Hang Seng Index ended up 116.23 points, or 0.46%, to finish at 25398.85 points, off an intra-day low of 25250.36. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, jumped 100.20 points, or 0.85%, to 11834.47 points. Turnover reduced to HK$79.8 billion from HK$81.7 billion on Wednesday.
Shares of shipping and aviation counters jumped after crude oil price dropped below US$50 level and hit fresh 3-month low. China Ship Dev (01138) and China South Air (01055) gained 2% and 4% to HK$5.33 and HK$9 respectively.
Casino stocks advanced, with Sands China leading the rally, up 8% to HK$33.35 after reported strong earnings for 2Q. Barclays Research expects the company to raise its dividend payout. Galaxy Ent (00027) shot up 4.5% to HK$35.85. Macau Legend (01680) jumped 4.7% to HK$2.43 after the company said it was granted a gaming concession by the government of Republic of Cabo Verde.
Sensex slips
Indian stock market ended lower after altering between positive and negative territory. As per provisional figures, the S&P BSE Sensex was down 143.41 points or 0.5% at 28,361.52. The CNX Nifty was down 47 points or 0.54% at 8,586.50, as per provisional figures. Investors remained sidelines in the absence of a positive surprise from the quarterly earnings.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 450.32 crore yesterday, 22 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 351.77 crore yesterday, 22 July 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.4% to 8791.12. South Korea's KOSPI added 0.02% to 2065.07. New Zealand's NZX50 fell 0.5% to 5901.30. Singapore's Straits Times index declined 0.1% at 3356.37. Indonesia's Jakarta Composite index lost 0.1% to 4902.85. Malaysia's KLCI fell 0.4% to 1722.44
