Asia Pacific share market tumbled on the final trading day of the week,
Friday, 04 September 2015, on caution ahead of the influential monthly
US job data for August 2015. Sliding factory orders in Germany and
concern that China may reduce support for its stock market also helped
send Asian benchmark gauges lower. Market participants shrugged off
signals from the European Central Bank that it is willing to take
further steps to shore up the European economy. ChinaThe MSCI Asia
Pacific Index dropped 1.1%. The Asia-Pacific benchmark had fallen 4.9%
this week.
Investors were fretting to hold riskier assets ahead of closely watched U.S. jobs data for August, due later Friday. The data is expected to give more clues as to whether the Federal Reserve may raise interest rates later this month or wait longer to act.
A strong jobs number could rekindle speculation of an interest rate hike in the U.S. as soon as this month, which could hurt risk assets, particularly in emerging markets.
Federal Reserve officials, meanwhile, have indicated that a rate increase remains on the table, although the recent market tumult has raised doubts about the exact timing of a move.
Investors were also keeping eyes on how Shanghai stocks will reopen Monday after China's two-day holiday. Chinese markets were closed on Thursday and Friday, as China commemorates the 70th anniversary of the end of World War-II.
In recent weeks, concerns about China have fueled big swings in stock markets and spurred many investors to exit bets on other relatively risky assets.
Among Asian bourses
Nikkei tanks 2.15%
The Japanese share market tumbled to finish at its lowest level since August 26, today, dragged down by yen appreciation against the major currency baskets and on caution ahead of a US jobs market report later in the global which likely to shape the Federal Reserve's interest rate decision. Total 32 out of 33 TSE sectors ended down, with Glass & Ceramics Products, Insurance, Information & Communication, Chemicals, Electric Appliances, Real Estate, and Services being major drag of the day. The Nikkei Stock Average tumbled 390.23 points, or 2.15%, to end at 17792.16 points. The broader Topix index dropped 2.06%, or 30.45 points, to 1444.53 at the close in Tokyo.
Bargain hunting spurs Australian market
The Australian share market closed edge above the neutral line after spending the day sliding between higher and lower. Eight out of ten ASX sectors were stronger, with technology, utilities, telecom, and material issues being major gainers. The benchmark S&P/ASX 200 index advanced 2.80 points, or 0.25%, to 5040.60 points. The broader All Ordinaries index closed 12.10 points, or 0.24%, up at 5060.80.
Hong Kong market ends softer
Hong Kong stock market ended down in volatile trade yet quite trade, following losses in the global markets yesterday and further weakness in the Asian market today. Investors cut exposure to riskier assets on concern that China may reduce support for its stock market and on caution before U.S. payrolls data on Friday. The Hang Seng Index ended down by 94.33 points, or 0.45%, at 20840.61 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, sank 131.73 points, or 1.42%, to 9169.59 points. Turnover reduced to HK$69.3 billion from HK$96.1 billion on Wednesday. Hong Kong markets were closed on Thursday, as China commemorates the 70th anniversary of the end of World War-II.
Sensex, Nifty tumbles more than 2% each
Stocks from banking, metal and power sector led losses as key benchmark indices tumbled. The barometer index, the S&P BSE Sensex, lost by 558.76 points, or 2.17%, to 25,206.02, as per provisional closing data. The 50-unit CNX Nifty slumped 167.95 points or 2.15% at 7,655.05, as per provisional closing data. The Sensex hit its lowest level in more than 13 months while he Nifty hit its lowest level in more than a year.
Bank stocks fell after a credit rating agency said in a research note that the Reserve Bank of India's (RBI) draft guidelines on computation of base rate, if implemented in its current form, will adversely impact profitability of Indian banks.
In sector trends, shares of power generation and power distribution firms tumbled.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.2% to 8000.60. South Korea's KOPSI fell 1.5% to 1886.04. New Zealand's NZX50 fell 0.4% to 5546.88. Singapore's Straits Times index slipped 1.5% at 2863.81. Indonesia's Jakarta Composite index dropped 0.4% to 4415.34. Malaysia's KLCI sank 0.9% to 1589.16. China market closed for holiday.
Investors were fretting to hold riskier assets ahead of closely watched U.S. jobs data for August, due later Friday. The data is expected to give more clues as to whether the Federal Reserve may raise interest rates later this month or wait longer to act.
A strong jobs number could rekindle speculation of an interest rate hike in the U.S. as soon as this month, which could hurt risk assets, particularly in emerging markets.
Federal Reserve officials, meanwhile, have indicated that a rate increase remains on the table, although the recent market tumult has raised doubts about the exact timing of a move.
Investors were also keeping eyes on how Shanghai stocks will reopen Monday after China's two-day holiday. Chinese markets were closed on Thursday and Friday, as China commemorates the 70th anniversary of the end of World War-II.
In recent weeks, concerns about China have fueled big swings in stock markets and spurred many investors to exit bets on other relatively risky assets.
Among Asian bourses
Nikkei tanks 2.15%
The Japanese share market tumbled to finish at its lowest level since August 26, today, dragged down by yen appreciation against the major currency baskets and on caution ahead of a US jobs market report later in the global which likely to shape the Federal Reserve's interest rate decision. Total 32 out of 33 TSE sectors ended down, with Glass & Ceramics Products, Insurance, Information & Communication, Chemicals, Electric Appliances, Real Estate, and Services being major drag of the day. The Nikkei Stock Average tumbled 390.23 points, or 2.15%, to end at 17792.16 points. The broader Topix index dropped 2.06%, or 30.45 points, to 1444.53 at the close in Tokyo.
Bargain hunting spurs Australian market
The Australian share market closed edge above the neutral line after spending the day sliding between higher and lower. Eight out of ten ASX sectors were stronger, with technology, utilities, telecom, and material issues being major gainers. The benchmark S&P/ASX 200 index advanced 2.80 points, or 0.25%, to 5040.60 points. The broader All Ordinaries index closed 12.10 points, or 0.24%, up at 5060.80.
Hong Kong market ends softer
Hong Kong stock market ended down in volatile trade yet quite trade, following losses in the global markets yesterday and further weakness in the Asian market today. Investors cut exposure to riskier assets on concern that China may reduce support for its stock market and on caution before U.S. payrolls data on Friday. The Hang Seng Index ended down by 94.33 points, or 0.45%, at 20840.61 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, sank 131.73 points, or 1.42%, to 9169.59 points. Turnover reduced to HK$69.3 billion from HK$96.1 billion on Wednesday. Hong Kong markets were closed on Thursday, as China commemorates the 70th anniversary of the end of World War-II.
Sensex, Nifty tumbles more than 2% each
Stocks from banking, metal and power sector led losses as key benchmark indices tumbled. The barometer index, the S&P BSE Sensex, lost by 558.76 points, or 2.17%, to 25,206.02, as per provisional closing data. The 50-unit CNX Nifty slumped 167.95 points or 2.15% at 7,655.05, as per provisional closing data. The Sensex hit its lowest level in more than 13 months while he Nifty hit its lowest level in more than a year.
Bank stocks fell after a credit rating agency said in a research note that the Reserve Bank of India's (RBI) draft guidelines on computation of base rate, if implemented in its current form, will adversely impact profitability of Indian banks.
In sector trends, shares of power generation and power distribution firms tumbled.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.2% to 8000.60. South Korea's KOPSI fell 1.5% to 1886.04. New Zealand's NZX50 fell 0.4% to 5546.88. Singapore's Straits Times index slipped 1.5% at 2863.81. Indonesia's Jakarta Composite index dropped 0.4% to 4415.34. Malaysia's KLCI sank 0.9% to 1589.16. China market closed for holiday.
