Asia Pacific share market ended mostly lower on Thursday, 06 August
2015, as jitters about China's economy and fear of US rate hike in
September triggered risk aversion selloff. The MSCI Asia Pacific Index
slid 0.2% to 140.76.
The stronger than expected US service-sector data and comments from a Fed policymaker boosted optimism about the United State economy and increasing expectations of a U.S. rate hike in September.
The U.S. Institute for Supply Management's services sector index rose to 60.3, its highest level since August 2005, far beyond expectations for a 56.2 reading. The data backed views the Federal Reserve will raise rates in September, more than offsetting weaker-than-expected U.S. private hiring figures for July also released on Wednesday.
Federal Reserve Governor Jerome Powell yesterday, 5 August 2015, said that he was undecided about whether to support a rate hike when policy makers next meet in mid-September. Powell's remarks came after two Fed regional bank presidents have come out in favour of a September hike earlier this week.
The influential monthly US nonfarm payroll report for July 2015 is due tomorrow, 7 August 2015. The report will be scrutinized for clues to the strength of the labour-market recovery. Investors have been parsing economic data, from inflation to wages, for clues about when the Federal Reserve might raise rates.
Investors are worried that weaning off decade-long zero interest rates on the dollar could prove tough for some emerging economies and companies that have taken cheap dollar funding for granted. The Brazilian real hit a 12-year low and the South African rand hit a 14-year low on Wednesday. In Asia, the Indonesian rupiah and the Malaysian ringgit flirted with the lowest levels since the Asian economic crisis in the late 1990s.
Among Asian bourses
Australia stocks fall to one-week low
The Australian share market declined to one-week low lower, as ANZ's capital raising announcement revived fresh concerns about the banks' new and looming regulatory requirements. Nine out of ten ASX sectors ended in the red, with financial, energy, industrial, healthcare and consumer staple sectors leading declines, although materials sector was uptick for the second session in a row due to commodities gains. The benchmark S&P/ASX 200 Index dropped 63.90 points, or 1.13%, to 5610.10 points, while the broader All Ordinaries Index declined by 1.05%, or 59.40 points, to 5600.10 points. Investors are keeping eye on the Reserve Bank of Australia releases its statement on monetary policy tomorrow.
Japan stocks climb on weaker yen
Japanese share market enjoyed a modest gain for second consecutive session, as risk momentum boosted up by tracking gains in the Wall Street overnight amid better-than-estimated US economic data and yen depreciation against the greenback. Meanwhile, better than expected domestic earnings also bolstered sentiments. The Nikkei Stock Average advanced 50.38 points, or 0.24%, to end at 20664.44 points. The broader Topix index ended 7.73 points, or 0.46%, higher at 1673.56 points. 22 out of 33 TSE sectors advanced, with Pulp & Paper, Textiles & Apparels, Insurance, Glass & Ceramics Products, Transportation Equipment, and Nonferrous Metals sectors being top gainers.
China market drops 0.9%
Mainland China's stock declined for second straight day in subdued trade, on rumour that the regulator will begin to unwind some of its market-supporting measures, starting with a resumption of new share sales. Nine out of 10 SSE sectors declined, with telecommunication services, consumer staple, industrial, and material sectors leading declines. The benchmark Shanghai Composite Index ended 33.03 points, or 0.89%, down at 3661.54 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.69%, or 14.77 points, to 2113.65 points. Total volume of A shares traded in Shanghai was 35.75 billion shares, while Shenzhen volume was 20.22 billion shares.
Hong Kong market drops 0.57%
The Hong Kong stock market closed weaker in quiet trade, as mixed US economic data and volatility in mainland markets dragged down investors' sentiments. The Hang Seng Index ended 138.88 points, or 0.57%, higher at 24375.28 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 32.57 points, or 0.29%, to 11093.27 points. Turnover reduced slightly to HK$67.3 billion from HK$68.6 billion on Wednesday.
Sensex registers modest gains in choppy trade
Indian benchmark indices registered modest gains in volatile trade, on reports retirement fund manager Employees Provident Fund Organisation (EPFO) will reportedly start investing in the stock market through the exchange-traded funds (ETFs) route starting today, 6 August 2015. As per provisional closing, the S&P BSE Sensex was up 88.02 points or 0.31% at 28,311.10. The 50-unit CNX Nifty was up 20.70 points or 0.24% at 8,588.65.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 447.90 crore yesterday, 5 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 189.11 crore yesterday, 5 August 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index slipped 1.1% to 8449.56. South Korea's KOSPI dropped 0.8% to 2013.29. New Zealand's NZX50 declined 0.2% to 5928.69. Singapore's Straits Times index rose 0.2% at 3196.66. Indonesia's Jakarta Composite index dropped 0.9% to 4806.56. Malaysia's KLCI sank 1.8% to 1694.64.
The stronger than expected US service-sector data and comments from a Fed policymaker boosted optimism about the United State economy and increasing expectations of a U.S. rate hike in September.
The U.S. Institute for Supply Management's services sector index rose to 60.3, its highest level since August 2005, far beyond expectations for a 56.2 reading. The data backed views the Federal Reserve will raise rates in September, more than offsetting weaker-than-expected U.S. private hiring figures for July also released on Wednesday.
Federal Reserve Governor Jerome Powell yesterday, 5 August 2015, said that he was undecided about whether to support a rate hike when policy makers next meet in mid-September. Powell's remarks came after two Fed regional bank presidents have come out in favour of a September hike earlier this week.
The influential monthly US nonfarm payroll report for July 2015 is due tomorrow, 7 August 2015. The report will be scrutinized for clues to the strength of the labour-market recovery. Investors have been parsing economic data, from inflation to wages, for clues about when the Federal Reserve might raise rates.
Investors are worried that weaning off decade-long zero interest rates on the dollar could prove tough for some emerging economies and companies that have taken cheap dollar funding for granted. The Brazilian real hit a 12-year low and the South African rand hit a 14-year low on Wednesday. In Asia, the Indonesian rupiah and the Malaysian ringgit flirted with the lowest levels since the Asian economic crisis in the late 1990s.
Among Asian bourses
Australia stocks fall to one-week low
The Australian share market declined to one-week low lower, as ANZ's capital raising announcement revived fresh concerns about the banks' new and looming regulatory requirements. Nine out of ten ASX sectors ended in the red, with financial, energy, industrial, healthcare and consumer staple sectors leading declines, although materials sector was uptick for the second session in a row due to commodities gains. The benchmark S&P/ASX 200 Index dropped 63.90 points, or 1.13%, to 5610.10 points, while the broader All Ordinaries Index declined by 1.05%, or 59.40 points, to 5600.10 points. Investors are keeping eye on the Reserve Bank of Australia releases its statement on monetary policy tomorrow.
Japan stocks climb on weaker yen
Japanese share market enjoyed a modest gain for second consecutive session, as risk momentum boosted up by tracking gains in the Wall Street overnight amid better-than-estimated US economic data and yen depreciation against the greenback. Meanwhile, better than expected domestic earnings also bolstered sentiments. The Nikkei Stock Average advanced 50.38 points, or 0.24%, to end at 20664.44 points. The broader Topix index ended 7.73 points, or 0.46%, higher at 1673.56 points. 22 out of 33 TSE sectors advanced, with Pulp & Paper, Textiles & Apparels, Insurance, Glass & Ceramics Products, Transportation Equipment, and Nonferrous Metals sectors being top gainers.
China market drops 0.9%
Mainland China's stock declined for second straight day in subdued trade, on rumour that the regulator will begin to unwind some of its market-supporting measures, starting with a resumption of new share sales. Nine out of 10 SSE sectors declined, with telecommunication services, consumer staple, industrial, and material sectors leading declines. The benchmark Shanghai Composite Index ended 33.03 points, or 0.89%, down at 3661.54 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.69%, or 14.77 points, to 2113.65 points. Total volume of A shares traded in Shanghai was 35.75 billion shares, while Shenzhen volume was 20.22 billion shares.
Hong Kong market drops 0.57%
The Hong Kong stock market closed weaker in quiet trade, as mixed US economic data and volatility in mainland markets dragged down investors' sentiments. The Hang Seng Index ended 138.88 points, or 0.57%, higher at 24375.28 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 32.57 points, or 0.29%, to 11093.27 points. Turnover reduced slightly to HK$67.3 billion from HK$68.6 billion on Wednesday.
Sensex registers modest gains in choppy trade
Indian benchmark indices registered modest gains in volatile trade, on reports retirement fund manager Employees Provident Fund Organisation (EPFO) will reportedly start investing in the stock market through the exchange-traded funds (ETFs) route starting today, 6 August 2015. As per provisional closing, the S&P BSE Sensex was up 88.02 points or 0.31% at 28,311.10. The 50-unit CNX Nifty was up 20.70 points or 0.24% at 8,588.65.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 447.90 crore yesterday, 5 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 189.11 crore yesterday, 5 August 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index slipped 1.1% to 8449.56. South Korea's KOSPI dropped 0.8% to 2013.29. New Zealand's NZX50 declined 0.2% to 5928.69. Singapore's Straits Times index rose 0.2% at 3196.66. Indonesia's Jakarta Composite index dropped 0.9% to 4806.56. Malaysia's KLCI sank 1.8% to 1694.64.
