Asia Pacific share market declined on Tuesday, 15 September 2015,
following declines in US and European bourses overnight, as investors
stayed on the sideline amid concerns about China's slowing economy and
on caution ahead of the US central bank's policy meeting.
Market participants largely took a wait-and-see approach ahead of the two-day Federal Open Market Committee meeting concluding on Thursday. Economists are expecting that the Federal Open Market Committee (FOMC) will signal an initial a measured tightening soon, but hold off a September rate hike. The World Bank's chief economist joined Christine Lagarde, managing director of the International Monetary Fund, in warning that a rate rise could trigger “panic and turmoil” in emerging markets.
Many market participants expects the Fed likely decline to raise short-term rates at its closely watched meeting, given uncertainties over growth in China. The market is eager to get some hints from the accompanying statement and comments from Chair Janet Yellen on the monetary policy outlook. Since PBOC's devaluation of renminbi and the financial market volatility in mid-August, speculations for Fed funds rate hike in September have greatly diminished. It is now widely anticipated that the Fed would stand on the sideline this month.
Among Asian bourses
Japan stocks up slightly
The Japanese share market managed to close above the neutral line after trimming early gains, as the Bank of Japan (BOJ) maintained its expansionary monetary policy at an annual pace of 80 trillion yen, as widely expected. However, overnight fall at Wall Street along with strengthening Yen against U.S. Dollar capped the upside in the Nikkei. Total 17 out of Topix's 33 industry groups declined, with information & communication, financial business, iron & steel and construction issues led losses. The Nikkei Stock Average advanced 60.78 points, or 0.34%, to end at 18026.48 points. The broader Topix index dropped 0.01%, or 0.17 point, to 1462.24 at the close in Tokyo.
Australian market ends down on global concern
The Australian share market closed down, as risk aversion selloff triggered after the Reserve Bank's negative outlook for the local economy. Malcolm Turnbull's appointment as Prime Minister had limited influence on the market. Investors are largely opted a wait and see stance because of uncertainty about the US Federal Reserve's highly anticipated meeting on interest rate decision due on Thursday. All ASX sectors ended down, with financial, realty, material, industrial, and energy issues being major drag on the market. The benchmark S&P/ASX 200 index declined 78.10 points, or 1.53%, to 5018.40 points. The broader All Ordinaries index ended down 73.90 points, or 1.44%, at 5046.60.
China stocks decline further
The Mainland China's stock market extended losses, taking the benchmark index briefly below the psychological level of 3000 as investors worried about the slowing economy. Investors' risk sentiments were hurt after August industrial output and investment data on Sunday pointed the slowdown in the world's second largest economy is deepening. The Shanghai Composite Index tanked 3.52%, or 109.63 points, to 3005.17 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 4.97%, or 82.63 points, to 1580.26. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, sank 5.7%, or 108.66 points, to close at 1797.56.
Sensex slides on weak global cues
Weakness in Asian stocks and caution ahead of a US Federal Reserve meeting later this week pulled key benchmark indices lower. The barometer index, the S&P BSE Sensex dropped 178.82 points or 0.69% to 25,677.88, as per provisional closing data. The 50-unit CNX Nifty lost 43.15 points or 0.55% at 7,829.10, as per provisional closing data. Metal and auto stocks led the decline for key indices which hovered in negative zone almost throughout the trading session.
The latest data showed that inflation based on the consumer price index (CPI) remained benign last month. The headline CPI inflation eased to 3.66% in August 2015 from 3.69% in July 2015. Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index declined 0.6% to 8260. South Korea's KOPSI rose 0.3% to 1937.56. New Zealand's NZX50 slipped 0.2% to 5652.39. Singapore's Straits Times index lost 1% at 2841.94. Indonesia's Jakarta Composite index dropped 1% to 4347.16. Malaysia's KLCI rose 0.5% to 1647.54.
Market participants largely took a wait-and-see approach ahead of the two-day Federal Open Market Committee meeting concluding on Thursday. Economists are expecting that the Federal Open Market Committee (FOMC) will signal an initial a measured tightening soon, but hold off a September rate hike. The World Bank's chief economist joined Christine Lagarde, managing director of the International Monetary Fund, in warning that a rate rise could trigger “panic and turmoil” in emerging markets.
Many market participants expects the Fed likely decline to raise short-term rates at its closely watched meeting, given uncertainties over growth in China. The market is eager to get some hints from the accompanying statement and comments from Chair Janet Yellen on the monetary policy outlook. Since PBOC's devaluation of renminbi and the financial market volatility in mid-August, speculations for Fed funds rate hike in September have greatly diminished. It is now widely anticipated that the Fed would stand on the sideline this month.
Among Asian bourses
Japan stocks up slightly
The Japanese share market managed to close above the neutral line after trimming early gains, as the Bank of Japan (BOJ) maintained its expansionary monetary policy at an annual pace of 80 trillion yen, as widely expected. However, overnight fall at Wall Street along with strengthening Yen against U.S. Dollar capped the upside in the Nikkei. Total 17 out of Topix's 33 industry groups declined, with information & communication, financial business, iron & steel and construction issues led losses. The Nikkei Stock Average advanced 60.78 points, or 0.34%, to end at 18026.48 points. The broader Topix index dropped 0.01%, or 0.17 point, to 1462.24 at the close in Tokyo.
Australian market ends down on global concern
The Australian share market closed down, as risk aversion selloff triggered after the Reserve Bank's negative outlook for the local economy. Malcolm Turnbull's appointment as Prime Minister had limited influence on the market. Investors are largely opted a wait and see stance because of uncertainty about the US Federal Reserve's highly anticipated meeting on interest rate decision due on Thursday. All ASX sectors ended down, with financial, realty, material, industrial, and energy issues being major drag on the market. The benchmark S&P/ASX 200 index declined 78.10 points, or 1.53%, to 5018.40 points. The broader All Ordinaries index ended down 73.90 points, or 1.44%, at 5046.60.
China stocks decline further
The Mainland China's stock market extended losses, taking the benchmark index briefly below the psychological level of 3000 as investors worried about the slowing economy. Investors' risk sentiments were hurt after August industrial output and investment data on Sunday pointed the slowdown in the world's second largest economy is deepening. The Shanghai Composite Index tanked 3.52%, or 109.63 points, to 3005.17 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 4.97%, or 82.63 points, to 1580.26. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, sank 5.7%, or 108.66 points, to close at 1797.56.
Sensex slides on weak global cues
Weakness in Asian stocks and caution ahead of a US Federal Reserve meeting later this week pulled key benchmark indices lower. The barometer index, the S&P BSE Sensex dropped 178.82 points or 0.69% to 25,677.88, as per provisional closing data. The 50-unit CNX Nifty lost 43.15 points or 0.55% at 7,829.10, as per provisional closing data. Metal and auto stocks led the decline for key indices which hovered in negative zone almost throughout the trading session.
The latest data showed that inflation based on the consumer price index (CPI) remained benign last month. The headline CPI inflation eased to 3.66% in August 2015 from 3.69% in July 2015. Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index declined 0.6% to 8260. South Korea's KOPSI rose 0.3% to 1937.56. New Zealand's NZX50 slipped 0.2% to 5652.39. Singapore's Straits Times index lost 1% at 2841.94. Indonesia's Jakarta Composite index dropped 1% to 4347.16. Malaysia's KLCI rose 0.5% to 1647.54.
