The risk aversion selloff pressure in Asia Pacific share market
continued on Thursday, 20 August 2015, amid heightening concerns about
slowing Chinese economic growth and after release of the dovish and
non-committal FOMC minutes overnight. The MSCI Asia-Pacific Index slid
1.5% to 133.97.
Minutes from the latest Federal Reserve meeting released on Wednesday showed that conditions for a rate increase are "approaching" but not at hand. Despite improvement in various macroeconomic indicators, policymakers believed that more evidence is needed to show that inflation is moving toward goal and the job market improvement is sufficient and sustainable, before they would adopt a rate hike. Although one member preferred to hike interest rates in the July meeting, 'most judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point'. The member opting for tightening was also willing to wait for additional data to confirm a judgment to raise the target range.
Among Asian bourses
Australian market tanks 1.7%
The Australian share market plummeted to fresh seven-month low, as risk aversion selloff triggered on tracking weak lead from Wall Street overnight. Meanwhile, selloff momentum intensified amid lingering concerns over the Chinese economy and a flurry of local corporate earnings. Except bullion, all ASX sectors ended in the sea of red, with energy, materials, financial, industrials, and technology sectors leading decliners. The benchmark S&P/ASX 200 Index stumbled 91.60 points, or 1.7%, to 5288.60 points, while the broader All Ordinaries Index tanked 84.30 points, or 1.57%, to 5295.50 points.
Nikkei falls 0.94%
Japanese share market declined for third straight session on tracking weak lead from Wall Street overnight and on growing concerns about a global economic slowdown. Almost all TSE sectors dived in red, with financials, banks, energy, resources, commercial & wholesale trade, and steel & nonferrous metal sectors being major loser. The Nikkei Stock Average declined 189.11 points, or 0.94%, to end at 20033.52 points. The broader Topix index ended 24.60 points, or 1.49%, lower at 1623.88 points.
China market tanks 3.42%
Mainland China's stock market tumbled on rising concerns about capital outflows and economic growth slowdown. Meanwhile, selloff pressure intensified after the International Monetary Fund signaled that it won't add the yuan to its basket of reserve currencies for at least a year. All sectors weakened, with shares of health-care, industrial and consumer companies leading losses leading the decline. The benchmark Shanghai Composite Index closed down by 3.42%, or 129.82 points, to 3664.29 points, the lowest level since 6 August 2015. The Shenzhen Composite Index, which tracks stocks on China's second exchange, de-grew 3%, or 66.56 points, to 2155.49 points. Total volume of A shares traded in Shanghai was 39 billion shares, while Shenzhen volume was 28.37 billion shares.
Hong Kong market extends decline
Hong Kong stock market ended lower for fifth straight session as risk sentiment shaken by weak lead from Wall Street overnight and steep drop in Mainland China A-share market today. The Hang Seng Index (HSI) opened down 193 points and saw its losses widen to more than 500 points at one stage. The Hang Seng Index ended down 410.38 points, or 1.77%, at 22757.47 points, taking its decline from an April 28 high to 19.5%, approaching the 20% level that signifies the start of a bear market. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 239.52 points, or 2.25%, to 10402.72 points.
Sensex, Nifty hit one-week closing low
A broad based decline was witnessed on the Indian bourses. The weakness on the Indian bourses was due to weakness in global stocks. Banking and oil stocks led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week closing low. The Sensex dropped 323.82 points or 1.16% to settle 27,607.82. The Nifty shed 122.40 points or 1.44% to settle at 8,372.75.
Metal and mining stocks edged lower on weakness in industrial metal prices in the global commodities markets. Shares of index heavyweight and cigarette major ITC edged higher on reports that a foreign brokerage has upgraded the stock to overweight from underweight. Realty stocks tumbled.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 299.35 crore into the secondary equity market yesterday, 19 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 383.32 crore yesterday, 19 August 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.1% to 8029.81. South Korea's KOPSI declined 1.3% to 1915.55. New Zealand's NZX50 fell 0.1% to 5742.46. Singapore's Straits Times index shed 1% at 3009.78. Indonesia's Jakarta Composite index sank 0.9% to 4441.91. Malaysia's KLCI fell 0.3% to 1577.41.
Minutes from the latest Federal Reserve meeting released on Wednesday showed that conditions for a rate increase are "approaching" but not at hand. Despite improvement in various macroeconomic indicators, policymakers believed that more evidence is needed to show that inflation is moving toward goal and the job market improvement is sufficient and sustainable, before they would adopt a rate hike. Although one member preferred to hike interest rates in the July meeting, 'most judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point'. The member opting for tightening was also willing to wait for additional data to confirm a judgment to raise the target range.
Among Asian bourses
Australian market tanks 1.7%
The Australian share market plummeted to fresh seven-month low, as risk aversion selloff triggered on tracking weak lead from Wall Street overnight. Meanwhile, selloff momentum intensified amid lingering concerns over the Chinese economy and a flurry of local corporate earnings. Except bullion, all ASX sectors ended in the sea of red, with energy, materials, financial, industrials, and technology sectors leading decliners. The benchmark S&P/ASX 200 Index stumbled 91.60 points, or 1.7%, to 5288.60 points, while the broader All Ordinaries Index tanked 84.30 points, or 1.57%, to 5295.50 points.
Nikkei falls 0.94%
Japanese share market declined for third straight session on tracking weak lead from Wall Street overnight and on growing concerns about a global economic slowdown. Almost all TSE sectors dived in red, with financials, banks, energy, resources, commercial & wholesale trade, and steel & nonferrous metal sectors being major loser. The Nikkei Stock Average declined 189.11 points, or 0.94%, to end at 20033.52 points. The broader Topix index ended 24.60 points, or 1.49%, lower at 1623.88 points.
China market tanks 3.42%
Mainland China's stock market tumbled on rising concerns about capital outflows and economic growth slowdown. Meanwhile, selloff pressure intensified after the International Monetary Fund signaled that it won't add the yuan to its basket of reserve currencies for at least a year. All sectors weakened, with shares of health-care, industrial and consumer companies leading losses leading the decline. The benchmark Shanghai Composite Index closed down by 3.42%, or 129.82 points, to 3664.29 points, the lowest level since 6 August 2015. The Shenzhen Composite Index, which tracks stocks on China's second exchange, de-grew 3%, or 66.56 points, to 2155.49 points. Total volume of A shares traded in Shanghai was 39 billion shares, while Shenzhen volume was 28.37 billion shares.
Hong Kong market extends decline
Hong Kong stock market ended lower for fifth straight session as risk sentiment shaken by weak lead from Wall Street overnight and steep drop in Mainland China A-share market today. The Hang Seng Index (HSI) opened down 193 points and saw its losses widen to more than 500 points at one stage. The Hang Seng Index ended down 410.38 points, or 1.77%, at 22757.47 points, taking its decline from an April 28 high to 19.5%, approaching the 20% level that signifies the start of a bear market. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 239.52 points, or 2.25%, to 10402.72 points.
Sensex, Nifty hit one-week closing low
A broad based decline was witnessed on the Indian bourses. The weakness on the Indian bourses was due to weakness in global stocks. Banking and oil stocks led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week closing low. The Sensex dropped 323.82 points or 1.16% to settle 27,607.82. The Nifty shed 122.40 points or 1.44% to settle at 8,372.75.
Metal and mining stocks edged lower on weakness in industrial metal prices in the global commodities markets. Shares of index heavyweight and cigarette major ITC edged higher on reports that a foreign brokerage has upgraded the stock to overweight from underweight. Realty stocks tumbled.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 299.35 crore into the secondary equity market yesterday, 19 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 383.32 crore yesterday, 19 August 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.1% to 8029.81. South Korea's KOPSI declined 1.3% to 1915.55. New Zealand's NZX50 fell 0.1% to 5742.46. Singapore's Straits Times index shed 1% at 3009.78. Indonesia's Jakarta Composite index sank 0.9% to 4441.91. Malaysia's KLCI fell 0.3% to 1577.41.
