Asia Pacific share market ended mostly down on first trading session of
the week, Monday, 20 July 2015, as sentiment for risk assets muted
somewhat after the Federal Reserve kept alive hopes last week for
raising interest rates this year. The MSCI Asia Pacific Excluding Japan
Index slipped 0.3% to 463.22.
Fed chair Janet Yellen reiterated that "if the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target." Meanwhile, she expected economic recovery to "to strengthen over the remainder of this year and the unemployment rate to decline gradually." And, she's optimistic that "the U.S. economy also might snap back more quickly as the transitory influences holding down first-half growth fade and the boost to consumer spending from low oil prices shows through more definitively." Fed funds futures were pricing in over 30% change of rate hike from Fed this September, that's a bounce back from near 0% a while ago. Meanwhile, it's pricing in 70% of hike by year end.
Market participants concerns over Greece soothed after Germany's Parliament on Friday backed a rescue for Greece and euro-zone officials completed plans to provide the country with EUR 7 billion ($7.58 billion) of bridge financing.
In Euro zone, Greece will reopen banks on Monday with capital controls somewhat "released". Greeks will be able to withdraw EUR 420 a week at once, instead of EUR 60 a day. Prime minister Alexis Tsipras is preparing for another parliamentary vote for securing the new three year bailout. The vote will be carried out on Wednesday for a second package of the reforms that are prerequisite for finalizing the bailout. German Chancellor Angel Merkel said in a TV interview that she's open to consider debt relief for Greece provided the reforms are worked out.
Among Asian bourses
Australian market climbs
The Australian share market ended slightly higher after fluctuating in and out of the neutral line, thanks to gains in banks and financials which helped to offset weakness among resource shares. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both advanced by 0.3% to 5686.90 points and 5669 points, respectively.
Shares of banks and financial companies ended higher, after recovering from early losses hit by reports that regulator planned to raise the risk weight for mortgages, effective next July. Australia & New Zealand Banking Group added 1.3% to A$32.85, Westpac Banking Corp 0.1% to A$34.60, National Australia Bank 0.3% to A$34.44 and Commonwealth Bank of Australia 0.4% to A$88.36.
Material and resources stocks suffered heavy losses in the Sydney market, with bullion mining players being losers after gold tumbled to a more than five-year low on Monday. Gold price for August contract fell 2.1% to $1106.70 at Comex on Monday as positive U.S. economic data firms expectations the Federal Reserve will raise short-term interest rates later this year. Evolution Mining tumbled 14.5% to A$0.97 and Newcrest Mining 10.1% to A$11.87, and Perseus Mining 15.9% to A$0.37. Other heavyweight miners were mixed, with BHP Billiton down 0.4% to A$26.99, while Rio Tinto added 1.6% to A$53.87 and Fortescue Metals Group rose 1.8% to A$1.745 On the hand, copper and gold extractor Sandfire Resources gained 4.9% to A$6.61 after a drilling update on its Doolgunna project.
Shares of Sonic Healthcare retreated 2.8% to A$21.25 after the medical-laboratory company cut its forecast for the fiscal year ended in June. The company now expects earnings before interest, tax, depreciation and amortization of about A$730 million in the year through June, before one-time costs of about A$13 million. That is 3%-4% below previous guidance, mainly due to lower volumes than expected for its pathology operation, changes to fees for certain tests, and a further raise in specimen collection infrastructure costs. Sonic also expects EBITDA to be about 20% higher in fiscal 2016 at between A$850 million and A$875 million, before one-time items.
China stocks extend gains
Mainland China's stock market settled higher in volatile trade, marking a third consecutive session of winning streak, on the back of the Chinese government's recent, drastic supportive measures. But gain on the upside capped after authorities' weekend move to tighten the use of informal lending channels by stock investors. The benchmark Shanghai Composite Index advanced 34.76 points, or 0.88%, to finish at 3992.11 points, extending 3.5% gains last week. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.82%, or 39.87 points, to 2230.29 points.
The Shanghai Composite Index has climbed about 14% from its July 8 low, following a 32% plunge that helped erase almost $4 trillion of value. A total of 576 companies were suspended on mainland exchanges on Monday, equivalent to 20% of total listings, and down from 635 at the close on Friday.
HSBC expects a further cut in Chinese banks' reserve requirement ratio and further monetary easing in the third quarter to encourage economic activity. Meanwhile, the Chinese central bank published new guidelines on its website over the weekend in a bid to regulate Internet finance.
China's stock watchdog on Monday reaffirmed regulatory support for the country's equity market, denying a media report that it was studying a withdrawal of government funds used to stabilise the market. China Securities Finance Corp, a state-backed agency that provides margin finance and liquidity to the market, has up to 3 trillion yuan ($483 billion) on tap to support stocks. "Over the next stage, the China Securities Regulatory Commission (CSRC) will continue stabilising the market, with goals of stabilising sentiment and preventing systemic risk," spokesman Zhang Xiaojun was quoted as saying in a statement published by the regulator's official micro blog weibo. China injected hundreds of billion yuan of liquidity into brokerages and mutual funds to support its equity market after it slumped 30% in three weeks from June 12.
On Saturday, the central bank issued guidelines on its website to regulate fast-growing Internet finance as part of efforts to address risks exposed by the recent stock market turmoil. Informal lending channels such as peer-to-peer lending, which directly connects borrowers and lenders, have played a major role pumping up the market--but also exacerbating its declines.
Shares of telecommunication and technology companies advanced the most among 10 industry groups in Beijing. ZTE Corp., China's second-biggest phone-equipment maker, jumped 4.4% while Sanan Optoelectronics Co. surged by the 10% daily limit. PetroChina Co. led an advance for energy producers, surging 4.3%.
Hong Kong stocks closed little changed
The Hong Kong stock market registered first fall in three consecutive sessions, as some investors' opted withdrawing profit off the table on mounting sign of the US Federal Reserve interest rates hike this year. The Hang Seng Index declined 10.46 points, or 0.04%, to finish at 25404.81 points, off an intra-day high of 25540.31. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 76.22 points, or 0.64%, to 11773.92 points. Turnover decreased to HK$84.94 billion from HK$95.1 billion on Friday.
Internet-related stocks rallied, boosted by Google's strong rally of 16.3% and after Chinese authorities jointly issued guidelines on Internet finance, specifying policies on how to further develop the emerging industry. Index heavyweight Tencent Holdings advanced 1.2% to HK$155.50, while online-transaction-service provider China Binary Sale Technology gained 5.2% to HK$1.22, software developer Kingdee International Software Group jumped 4.2% to HK$4.26, and Kingsoft Corp rose 0.4% to HK$22.75.
Military industrial counters in A-share market traded to limit-up. Comec (00317) soared 7.3% to HK$24.4. China Aerospace (00031) gained 3.4% to HK$1.52. AVIC IHL (00161) put on 2.8% to HK$6.31.
Hong Kong listed mainland banks were mixed, with China Merchants Bank Co down by 0.7% to HK$21.20, Bank of Communications Co lower by 1.2% to HK$7.15, Industrial & Commercial Bank of China down by 0.4%to HK$5.67, and Bank of China down by 0.2% to HK$4.46.
Gold stocks took heavy losses after intentional gold prices dropped to a more-than-five-year low at the end of last week, with Lingbao Gold Co shrink by 2.5% to HK$1.57 and Zijin Mining Group Co down by 6.3% to HK$2.33.
Shares of Haitong Securities Co ended 4.3% lower at HK$15.24. The Hong Kong-listed company said net profit surged 254.6% from a year earlier to 1 million yuan (US$161,000), and operating income rose by 228.5% to CNY2.2 million.
Sensex trades in negative zone in mid-afternoon trade
Indian stock market hovered in a narrow range in negative zone in mid-afternoon trade. At 14:15 IST, the S&P BSE Sensex was down 95.63 points or 0.34% at 28,367.68. The CNX Nifty was down 27.15 points or 0.32% at 8,582.70.
Auto stocks were mostly higher. FMCG stocks gained. Capital goods stocks dropped. Shares of power generation and power distribution companies edged lower. NTPC edged higher after the company said that the Unit-I, II, III and IV of 200 megawatts each of Koldam Hydro Electric Power Project is declared on commercial operation with effect from 18 July 2015.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 605.56 crore during the previous trading session on Friday, 17 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 175.15 crore during the previous trading session on Friday, 17 July 2015, as per provisional data.
Elsewhere in the Asia Pacific region:- Taiwan's Taiex index declined 0.8% to 8975. South Korea's KOSPI dropped 0.2% to 2073.31. New Zealand's NZX50 added 0.1% to 5861.93. Singapore's Straits Times index advanced 0.6% at 3373.48. Malaysia's KLCI fell 0.2% to 1724.13. Japan and Indonesia stock market closed for national holiday.
Fed chair Janet Yellen reiterated that "if the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target." Meanwhile, she expected economic recovery to "to strengthen over the remainder of this year and the unemployment rate to decline gradually." And, she's optimistic that "the U.S. economy also might snap back more quickly as the transitory influences holding down first-half growth fade and the boost to consumer spending from low oil prices shows through more definitively." Fed funds futures were pricing in over 30% change of rate hike from Fed this September, that's a bounce back from near 0% a while ago. Meanwhile, it's pricing in 70% of hike by year end.
Market participants concerns over Greece soothed after Germany's Parliament on Friday backed a rescue for Greece and euro-zone officials completed plans to provide the country with EUR 7 billion ($7.58 billion) of bridge financing.
In Euro zone, Greece will reopen banks on Monday with capital controls somewhat "released". Greeks will be able to withdraw EUR 420 a week at once, instead of EUR 60 a day. Prime minister Alexis Tsipras is preparing for another parliamentary vote for securing the new three year bailout. The vote will be carried out on Wednesday for a second package of the reforms that are prerequisite for finalizing the bailout. German Chancellor Angel Merkel said in a TV interview that she's open to consider debt relief for Greece provided the reforms are worked out.
Among Asian bourses
Australian market climbs
The Australian share market ended slightly higher after fluctuating in and out of the neutral line, thanks to gains in banks and financials which helped to offset weakness among resource shares. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both advanced by 0.3% to 5686.90 points and 5669 points, respectively.
Shares of banks and financial companies ended higher, after recovering from early losses hit by reports that regulator planned to raise the risk weight for mortgages, effective next July. Australia & New Zealand Banking Group added 1.3% to A$32.85, Westpac Banking Corp 0.1% to A$34.60, National Australia Bank 0.3% to A$34.44 and Commonwealth Bank of Australia 0.4% to A$88.36.
Material and resources stocks suffered heavy losses in the Sydney market, with bullion mining players being losers after gold tumbled to a more than five-year low on Monday. Gold price for August contract fell 2.1% to $1106.70 at Comex on Monday as positive U.S. economic data firms expectations the Federal Reserve will raise short-term interest rates later this year. Evolution Mining tumbled 14.5% to A$0.97 and Newcrest Mining 10.1% to A$11.87, and Perseus Mining 15.9% to A$0.37. Other heavyweight miners were mixed, with BHP Billiton down 0.4% to A$26.99, while Rio Tinto added 1.6% to A$53.87 and Fortescue Metals Group rose 1.8% to A$1.745 On the hand, copper and gold extractor Sandfire Resources gained 4.9% to A$6.61 after a drilling update on its Doolgunna project.
Shares of Sonic Healthcare retreated 2.8% to A$21.25 after the medical-laboratory company cut its forecast for the fiscal year ended in June. The company now expects earnings before interest, tax, depreciation and amortization of about A$730 million in the year through June, before one-time costs of about A$13 million. That is 3%-4% below previous guidance, mainly due to lower volumes than expected for its pathology operation, changes to fees for certain tests, and a further raise in specimen collection infrastructure costs. Sonic also expects EBITDA to be about 20% higher in fiscal 2016 at between A$850 million and A$875 million, before one-time items.
China stocks extend gains
Mainland China's stock market settled higher in volatile trade, marking a third consecutive session of winning streak, on the back of the Chinese government's recent, drastic supportive measures. But gain on the upside capped after authorities' weekend move to tighten the use of informal lending channels by stock investors. The benchmark Shanghai Composite Index advanced 34.76 points, or 0.88%, to finish at 3992.11 points, extending 3.5% gains last week. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.82%, or 39.87 points, to 2230.29 points.
The Shanghai Composite Index has climbed about 14% from its July 8 low, following a 32% plunge that helped erase almost $4 trillion of value. A total of 576 companies were suspended on mainland exchanges on Monday, equivalent to 20% of total listings, and down from 635 at the close on Friday.
HSBC expects a further cut in Chinese banks' reserve requirement ratio and further monetary easing in the third quarter to encourage economic activity. Meanwhile, the Chinese central bank published new guidelines on its website over the weekend in a bid to regulate Internet finance.
China's stock watchdog on Monday reaffirmed regulatory support for the country's equity market, denying a media report that it was studying a withdrawal of government funds used to stabilise the market. China Securities Finance Corp, a state-backed agency that provides margin finance and liquidity to the market, has up to 3 trillion yuan ($483 billion) on tap to support stocks. "Over the next stage, the China Securities Regulatory Commission (CSRC) will continue stabilising the market, with goals of stabilising sentiment and preventing systemic risk," spokesman Zhang Xiaojun was quoted as saying in a statement published by the regulator's official micro blog weibo. China injected hundreds of billion yuan of liquidity into brokerages and mutual funds to support its equity market after it slumped 30% in three weeks from June 12.
On Saturday, the central bank issued guidelines on its website to regulate fast-growing Internet finance as part of efforts to address risks exposed by the recent stock market turmoil. Informal lending channels such as peer-to-peer lending, which directly connects borrowers and lenders, have played a major role pumping up the market--but also exacerbating its declines.
Shares of telecommunication and technology companies advanced the most among 10 industry groups in Beijing. ZTE Corp., China's second-biggest phone-equipment maker, jumped 4.4% while Sanan Optoelectronics Co. surged by the 10% daily limit. PetroChina Co. led an advance for energy producers, surging 4.3%.
Hong Kong stocks closed little changed
The Hong Kong stock market registered first fall in three consecutive sessions, as some investors' opted withdrawing profit off the table on mounting sign of the US Federal Reserve interest rates hike this year. The Hang Seng Index declined 10.46 points, or 0.04%, to finish at 25404.81 points, off an intra-day high of 25540.31. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 76.22 points, or 0.64%, to 11773.92 points. Turnover decreased to HK$84.94 billion from HK$95.1 billion on Friday.
Internet-related stocks rallied, boosted by Google's strong rally of 16.3% and after Chinese authorities jointly issued guidelines on Internet finance, specifying policies on how to further develop the emerging industry. Index heavyweight Tencent Holdings advanced 1.2% to HK$155.50, while online-transaction-service provider China Binary Sale Technology gained 5.2% to HK$1.22, software developer Kingdee International Software Group jumped 4.2% to HK$4.26, and Kingsoft Corp rose 0.4% to HK$22.75.
Military industrial counters in A-share market traded to limit-up. Comec (00317) soared 7.3% to HK$24.4. China Aerospace (00031) gained 3.4% to HK$1.52. AVIC IHL (00161) put on 2.8% to HK$6.31.
Hong Kong listed mainland banks were mixed, with China Merchants Bank Co down by 0.7% to HK$21.20, Bank of Communications Co lower by 1.2% to HK$7.15, Industrial & Commercial Bank of China down by 0.4%to HK$5.67, and Bank of China down by 0.2% to HK$4.46.
Gold stocks took heavy losses after intentional gold prices dropped to a more-than-five-year low at the end of last week, with Lingbao Gold Co shrink by 2.5% to HK$1.57 and Zijin Mining Group Co down by 6.3% to HK$2.33.
Shares of Haitong Securities Co ended 4.3% lower at HK$15.24. The Hong Kong-listed company said net profit surged 254.6% from a year earlier to 1 million yuan (US$161,000), and operating income rose by 228.5% to CNY2.2 million.
Sensex trades in negative zone in mid-afternoon trade
Indian stock market hovered in a narrow range in negative zone in mid-afternoon trade. At 14:15 IST, the S&P BSE Sensex was down 95.63 points or 0.34% at 28,367.68. The CNX Nifty was down 27.15 points or 0.32% at 8,582.70.
Auto stocks were mostly higher. FMCG stocks gained. Capital goods stocks dropped. Shares of power generation and power distribution companies edged lower. NTPC edged higher after the company said that the Unit-I, II, III and IV of 200 megawatts each of Koldam Hydro Electric Power Project is declared on commercial operation with effect from 18 July 2015.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 605.56 crore during the previous trading session on Friday, 17 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 175.15 crore during the previous trading session on Friday, 17 July 2015, as per provisional data.
Elsewhere in the Asia Pacific region:- Taiwan's Taiex index declined 0.8% to 8975. South Korea's KOSPI dropped 0.2% to 2073.31. New Zealand's NZX50 added 0.1% to 5861.93. Singapore's Straits Times index advanced 0.6% at 3373.48. Malaysia's KLCI fell 0.2% to 1724.13. Japan and Indonesia stock market closed for national holiday.
