Asia Pacific share market declined for second straight session on
Tuesday, 29 September 2015, as risk sentiment dented on tracking sharp
losses in the European and US markets overnight.
The global selloff triggered on renewed anxiety about a global slowdown with evidence of industrial weakness in China and concerns about potential impact on the timing of a U.S. interest rate increase.
Major U.S. averages closed sharply lower overnight, with the tech-heavy Nasdaq Composite leading losses with 3% slump, after bullish US consumer spending data in August raised concerns the Federal Reserve could hike rates at a time of slackening global growth. The Dow Jones Industrial Average lost 1.9%, while the S&P 500 tumbled 2.6%.
The Fed held off from raising interest rates at its meeting earlier this month, citing worries about the global economy, particularly China. But New York Fed President William Dudley said the central bank remains on track for a likely rate hike this year and could move as soon as next month. John Williams, head of the San Francisco Fed, also signalled support for an interest rate hike this year, though Chicago Fed chief Charles Evans sounded a far more dovish tone.
The concerns about china economic slowdown intensified after official data on Monday showed that China's industrial profits in August had suffered their biggest drop since October 2011. In the previous trading session, official data showed profits earned by Chinese industrial companies fell 8.8% in August from a year earlier, underscoring persistent signs of headwinds in the world's second-biggest economy.
China's is expected to release its September reading on manufacturing activity later this week, providing investors the latest assessment of the world's second-largest economy.
Commodity shares were among the biggest casualties as fears of weaker Chinese demand sent prices of commodities tumbling. Further adding to the 'risk-off' sentiment was the near 30% slump in the London-listed shares of commodities and mining behemoth Glencore on Monday.
Among Asian bourses
Australian market tumbles 3.8%
The Australian share market ended steeply down, as risk aversion selloff triggered amid a rout in commodity overnight on renewed anxiety about a global slowdown with evidence of industrial weakness in China and concerns about potential impact on the timing of a U.S. interest rate increase. All ASX sectors tumbled, with shares in energy, material, and financial issues being major losers. The benchmark S&P/ASX 200 index tanked 195.10 points, or 3.8%, to end at 4918.40 points, while the broader All Ordinaries index shrank 187 points, or 3.6%, to 4958.10 points.
Nikkei falls to 8-month lows
The Japanese share market tanked to eight-month lows on concerns over the Chinese economic slowdown and its impact on global markets. Tuesday's plunge was also spurred by the yen's strengthening against the dollar and large-lot futures-led selling. All 33 first-section sector sub-indexes finished lower, with Marine Transportation, Iron & Steel, Pharmaceutical, Wholesale Trade, Air Transportation, Information & Communication, and Mining issues being major decliners. The Nikkei Stock Average dropped 714.27 points, or 4.05%, to end at 16930.84 points. The broader Topix index retreated 4.39%, or 63.15 points, to 1375.52 at the close in Tokyo, the lowest since 19 January 2015.
China market tumbles 2%
The Mainland China's stock market ended down on deepening worries about domestic economic slowdown after industrial profits in August suffered biggest drop since October 2011. All 10 SSE sectors declined, with energy and material issues leading retreat, on fears of a sharp slowdown in the world economy. The Shanghai Composite Index tumbled 2.02%, or 62.62 points, to 3038.14 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.51%, or 26.20 points, to 1711.71. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, declined 1.12%, or 23.69 points, to close at 2098.57.
Hong Kong market slide 3%
Hong Kong stock market joined a global selloff amid deepening worries about the world economy. The benchmark Hang Seng Index (HSI) opened down 607 points and fell as much as 818 points at one stage, hitting a two-year low of 20,368. The Hang Seng Index declined 629.72 points, or 2.97%, at 20556.60 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 281.76 points, or 2.96%, to 9230.50 points. Turnover increased to HK$84 billion from HK$69 billion on Friday. The local market was closed on Monday due to a public holiday.
Sensex rebounds after RBI cuts key interest rates
Indian stock markets ended higher after reversing losses of more than 1% earlier in the session, thanks to the Reserve Bank of India (RBI) surprise decision with a bigger-than-expected rate cut, though we at Master Mind Financial Advisory expected the same. The barometer index, the S&P BSE Sensex, rose 161.82 points or 0.63% to settle at 25,778.66. The 50-unit CNX Nifty rose 47.60 points or 0.61% to settle at 7,843.30.
Bank and realty stocks gained in volatile trade after the RBI surprised the financial markets by announcing a steeper-than-expected cut in repo rate by 50 basis points to 6.75% at its fourth bi-monthly monetary policy review for the year 2015-16 today, 29 September 2015.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 fell 1.5% to 5612.32. Singapore's Straits Times index slipped 0.1% at 2787.94. Indonesia's Jakarta Composite index rose 1.4% to 4178.41. Malaysia's KLCI sank 0.3% to 1603.32. Financial markets in South Korea remain closed due to celebrations for the Chuseok holiday. Taiwan, which was supposed to reopen on Tuesday, got an additional day-off after Typhoon Dujuan hit the island on Monday.
The global selloff triggered on renewed anxiety about a global slowdown with evidence of industrial weakness in China and concerns about potential impact on the timing of a U.S. interest rate increase.
Major U.S. averages closed sharply lower overnight, with the tech-heavy Nasdaq Composite leading losses with 3% slump, after bullish US consumer spending data in August raised concerns the Federal Reserve could hike rates at a time of slackening global growth. The Dow Jones Industrial Average lost 1.9%, while the S&P 500 tumbled 2.6%.
The Fed held off from raising interest rates at its meeting earlier this month, citing worries about the global economy, particularly China. But New York Fed President William Dudley said the central bank remains on track for a likely rate hike this year and could move as soon as next month. John Williams, head of the San Francisco Fed, also signalled support for an interest rate hike this year, though Chicago Fed chief Charles Evans sounded a far more dovish tone.
The concerns about china economic slowdown intensified after official data on Monday showed that China's industrial profits in August had suffered their biggest drop since October 2011. In the previous trading session, official data showed profits earned by Chinese industrial companies fell 8.8% in August from a year earlier, underscoring persistent signs of headwinds in the world's second-biggest economy.
China's is expected to release its September reading on manufacturing activity later this week, providing investors the latest assessment of the world's second-largest economy.
Commodity shares were among the biggest casualties as fears of weaker Chinese demand sent prices of commodities tumbling. Further adding to the 'risk-off' sentiment was the near 30% slump in the London-listed shares of commodities and mining behemoth Glencore on Monday.
Among Asian bourses
Australian market tumbles 3.8%
The Australian share market ended steeply down, as risk aversion selloff triggered amid a rout in commodity overnight on renewed anxiety about a global slowdown with evidence of industrial weakness in China and concerns about potential impact on the timing of a U.S. interest rate increase. All ASX sectors tumbled, with shares in energy, material, and financial issues being major losers. The benchmark S&P/ASX 200 index tanked 195.10 points, or 3.8%, to end at 4918.40 points, while the broader All Ordinaries index shrank 187 points, or 3.6%, to 4958.10 points.
Nikkei falls to 8-month lows
The Japanese share market tanked to eight-month lows on concerns over the Chinese economic slowdown and its impact on global markets. Tuesday's plunge was also spurred by the yen's strengthening against the dollar and large-lot futures-led selling. All 33 first-section sector sub-indexes finished lower, with Marine Transportation, Iron & Steel, Pharmaceutical, Wholesale Trade, Air Transportation, Information & Communication, and Mining issues being major decliners. The Nikkei Stock Average dropped 714.27 points, or 4.05%, to end at 16930.84 points. The broader Topix index retreated 4.39%, or 63.15 points, to 1375.52 at the close in Tokyo, the lowest since 19 January 2015.
China market tumbles 2%
The Mainland China's stock market ended down on deepening worries about domestic economic slowdown after industrial profits in August suffered biggest drop since October 2011. All 10 SSE sectors declined, with energy and material issues leading retreat, on fears of a sharp slowdown in the world economy. The Shanghai Composite Index tumbled 2.02%, or 62.62 points, to 3038.14 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.51%, or 26.20 points, to 1711.71. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, declined 1.12%, or 23.69 points, to close at 2098.57.
Hong Kong market slide 3%
Hong Kong stock market joined a global selloff amid deepening worries about the world economy. The benchmark Hang Seng Index (HSI) opened down 607 points and fell as much as 818 points at one stage, hitting a two-year low of 20,368. The Hang Seng Index declined 629.72 points, or 2.97%, at 20556.60 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 281.76 points, or 2.96%, to 9230.50 points. Turnover increased to HK$84 billion from HK$69 billion on Friday. The local market was closed on Monday due to a public holiday.
Sensex rebounds after RBI cuts key interest rates
Indian stock markets ended higher after reversing losses of more than 1% earlier in the session, thanks to the Reserve Bank of India (RBI) surprise decision with a bigger-than-expected rate cut, though we at Master Mind Financial Advisory expected the same. The barometer index, the S&P BSE Sensex, rose 161.82 points or 0.63% to settle at 25,778.66. The 50-unit CNX Nifty rose 47.60 points or 0.61% to settle at 7,843.30.
Bank and realty stocks gained in volatile trade after the RBI surprised the financial markets by announcing a steeper-than-expected cut in repo rate by 50 basis points to 6.75% at its fourth bi-monthly monetary policy review for the year 2015-16 today, 29 September 2015.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 fell 1.5% to 5612.32. Singapore's Straits Times index slipped 0.1% at 2787.94. Indonesia's Jakarta Composite index rose 1.4% to 4178.41. Malaysia's KLCI sank 0.3% to 1603.32. Financial markets in South Korea remain closed due to celebrations for the Chuseok holiday. Taiwan, which was supposed to reopen on Tuesday, got an additional day-off after Typhoon Dujuan hit the island on Monday.
