Asia Pacific share market declined on Tuesday, 13 October 2015, amid
deepening concerns about slowdown in the world's second-largest economy
after weaker than expected China trade data. The MSCI Asia Pacific Index
fell 0.9% to 132.94.
The latest data from the General Administration of Customs of China showed Chinese exports fell 1.1% in yuan terms from a year earlier in September, after a 6.1% decline on year in August. Meanwhile, imports fell 17.7% in yuan terms compared with a 14.3% decrease in August. This left a trade surplus of 376.2 billion yuan. The results deepened concerns about slowdown in the world's second-largest economy and has shaken regional financial and commodity markets that rely heavily on Chinese demand.
However, losses in the regional bourses were limited as speculation global central bankers will maintain stimulus, at least through the end of the year.
Fed governor Lael Brainard urged FOMC to hold off from rate hike until the risks to recovery from global developments are cleared. She viewed that "the risks to the economic outlook as tilted to the downside". And those risks "make a strong case for continuing to carefully nurture the US recovery - and argue against prematurely taking away the support that has been so critical to its vitality." Chicago Fed president Charles Evans said that it's "way too early" to judge warrant a hike in December. But he noted that " the best choice is middle of 2016 until I see data that are stronger that lead me to have more confidence in inflation."
ECB governing council member Vitas Vasiliauskas said that there is "no need" for additional stimulus measures. And, there isn't any need for "additional fine-tuning" of the quantitative easing program. He said the current program is working and the "best evidence of effectiveness" could be seen through the lending channel. And, Eurozone economy is "in better shape" and the main challenges is "related with international factors".
Among Asian bourses
Australian market logs second straight losses
The Australian share market declined for second straight day amid deepening concerns about slowdown in the world's second-largest economy after China's trade data showed a larger-than-expected slide in imports. Most of the ASX industry blue-chip stocks slid, with material and energy producers being major losers. The benchmark S&P/ASX 200 index declined 30 points, or 0.57%, to 5202.90 points, while the broader All Ordinaries index sank 32.80 points, or 62%, to 5234.60 points.
Nikkei falls after China trade data signals slowdown
The Japanese share market ended softer, due to profit-taking after Chinese export data added more evidence about slowdown in the world's second largest economy. Total 22 out of 33 TSE first-section sector sub-indexes weighed down, with Mining, Banks, Insurance, Real Estate, and Securities & Commodities Futures issues being major losers. The Nikkei Stock Average stumbled 203.93 points, or 1.1%, to end at 18234.74 points, meanwhile the broader Topix index slid 0.79%, or 12 points, to 1503.13 at the close. Japanese market was closed for a holiday on Monday.
China market ends higher
The Mainland China's stock market finished higher in volatile trade, extending its winning streak to fifth straight session, after China's central bank expanded a pilot program to boost the banks' lending ability to shore up the real economy. Meanwhile, buying momentum also underpinned on possibility of further stimulus measures when Beijing meets later this month to discuss the 13th five-year plan. However, market gain was limited after weaker than expected trade data. Total 6 out of 10 SSE sectors added strength to the key index, with technology, telecommunication, and consumer goods stocks being major gainers and helping to offset losses in energy, financial and healthcare stocks. The Shanghai Composite Index advanced 0.17%, or 5.57 points, to close at 3293.23 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.05%, or 19.84 points, to 1907.12. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, grew 1.09%, or 25.26 points, to close at 2342.04.
Hong Kong market ends softer
Hong Kong stock market ended down in volatile trade, in tandem with losses in the other regional markets after Chinese trade data signaled latest evidence of weakening global and domestic demand slowdown in the world second largest economy. The Hang Seng Index declined 130.47 points, or 0.57%, to 22600.46 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, slid 100.50 points, or 0.95%, to 10437.69 points. Turnover reduced to HK$79.9 billion from HK$87.2 billion on Monday.
Sensex, Nifty trades lower in afternoon
A bout of volatility was witnessed as key benchmark indices on tracking weakness in global stocks. Asian and European stocks dropped after Chinese trade data signaled weakening global and domestic demand, the latest evidence that the world's No. 2 economy is stalling. At 14:16 IST, the barometer index, the S&P BSE Sensex, was off 136.15 points or 0.51% at 26,767.96. The 50-unit CNX Nifty was off 36.55 points or 0.45% at 8,107.05.
The latest data showed acceleration in consumer price inflation in September 2015, mainly due to increase in vegetable prices. Another data showed that a surge in production of two items contributed to more than half of the 6.4% increase in industrial production in August 2015. Inflation based on the consumer price index (CPI) increased to 4.4% in September 2015 from with 3.7% in August 2015. The core CPI inflation rose to 4.1% in September 2015 from 3.9% in August 2015. Growth in industrial production (IIP) hit its highest level in almost three years on the back a surge in the output of the manufacturing sector. Gems and jewellery and rubber insulated cables contributed to more than half of the 6.4% increase in industrial production in August 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.1% to 8567.92. South Korea's KOPSI lost 0.1% to 2019.05. New Zealand's NZX50 climbed up 0.2% to 5702.82. Singapore's Straits Times index fell 1.6% at 2984.88. Indonesia's Jakarta Composite index sank 3.2% to 4483.08. Malaysia's KLCI rose 0.1% to 1711.14.
The latest data from the General Administration of Customs of China showed Chinese exports fell 1.1% in yuan terms from a year earlier in September, after a 6.1% decline on year in August. Meanwhile, imports fell 17.7% in yuan terms compared with a 14.3% decrease in August. This left a trade surplus of 376.2 billion yuan. The results deepened concerns about slowdown in the world's second-largest economy and has shaken regional financial and commodity markets that rely heavily on Chinese demand.
However, losses in the regional bourses were limited as speculation global central bankers will maintain stimulus, at least through the end of the year.
Fed governor Lael Brainard urged FOMC to hold off from rate hike until the risks to recovery from global developments are cleared. She viewed that "the risks to the economic outlook as tilted to the downside". And those risks "make a strong case for continuing to carefully nurture the US recovery - and argue against prematurely taking away the support that has been so critical to its vitality." Chicago Fed president Charles Evans said that it's "way too early" to judge warrant a hike in December. But he noted that " the best choice is middle of 2016 until I see data that are stronger that lead me to have more confidence in inflation."
ECB governing council member Vitas Vasiliauskas said that there is "no need" for additional stimulus measures. And, there isn't any need for "additional fine-tuning" of the quantitative easing program. He said the current program is working and the "best evidence of effectiveness" could be seen through the lending channel. And, Eurozone economy is "in better shape" and the main challenges is "related with international factors".
Among Asian bourses
Australian market logs second straight losses
The Australian share market declined for second straight day amid deepening concerns about slowdown in the world's second-largest economy after China's trade data showed a larger-than-expected slide in imports. Most of the ASX industry blue-chip stocks slid, with material and energy producers being major losers. The benchmark S&P/ASX 200 index declined 30 points, or 0.57%, to 5202.90 points, while the broader All Ordinaries index sank 32.80 points, or 62%, to 5234.60 points.
Nikkei falls after China trade data signals slowdown
The Japanese share market ended softer, due to profit-taking after Chinese export data added more evidence about slowdown in the world's second largest economy. Total 22 out of 33 TSE first-section sector sub-indexes weighed down, with Mining, Banks, Insurance, Real Estate, and Securities & Commodities Futures issues being major losers. The Nikkei Stock Average stumbled 203.93 points, or 1.1%, to end at 18234.74 points, meanwhile the broader Topix index slid 0.79%, or 12 points, to 1503.13 at the close. Japanese market was closed for a holiday on Monday.
China market ends higher
The Mainland China's stock market finished higher in volatile trade, extending its winning streak to fifth straight session, after China's central bank expanded a pilot program to boost the banks' lending ability to shore up the real economy. Meanwhile, buying momentum also underpinned on possibility of further stimulus measures when Beijing meets later this month to discuss the 13th five-year plan. However, market gain was limited after weaker than expected trade data. Total 6 out of 10 SSE sectors added strength to the key index, with technology, telecommunication, and consumer goods stocks being major gainers and helping to offset losses in energy, financial and healthcare stocks. The Shanghai Composite Index advanced 0.17%, or 5.57 points, to close at 3293.23 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.05%, or 19.84 points, to 1907.12. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, grew 1.09%, or 25.26 points, to close at 2342.04.
Hong Kong market ends softer
Hong Kong stock market ended down in volatile trade, in tandem with losses in the other regional markets after Chinese trade data signaled latest evidence of weakening global and domestic demand slowdown in the world second largest economy. The Hang Seng Index declined 130.47 points, or 0.57%, to 22600.46 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, slid 100.50 points, or 0.95%, to 10437.69 points. Turnover reduced to HK$79.9 billion from HK$87.2 billion on Monday.
Sensex, Nifty trades lower in afternoon
A bout of volatility was witnessed as key benchmark indices on tracking weakness in global stocks. Asian and European stocks dropped after Chinese trade data signaled weakening global and domestic demand, the latest evidence that the world's No. 2 economy is stalling. At 14:16 IST, the barometer index, the S&P BSE Sensex, was off 136.15 points or 0.51% at 26,767.96. The 50-unit CNX Nifty was off 36.55 points or 0.45% at 8,107.05.
The latest data showed acceleration in consumer price inflation in September 2015, mainly due to increase in vegetable prices. Another data showed that a surge in production of two items contributed to more than half of the 6.4% increase in industrial production in August 2015. Inflation based on the consumer price index (CPI) increased to 4.4% in September 2015 from with 3.7% in August 2015. The core CPI inflation rose to 4.1% in September 2015 from 3.9% in August 2015. Growth in industrial production (IIP) hit its highest level in almost three years on the back a surge in the output of the manufacturing sector. Gems and jewellery and rubber insulated cables contributed to more than half of the 6.4% increase in industrial production in August 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.1% to 8567.92. South Korea's KOPSI lost 0.1% to 2019.05. New Zealand's NZX50 climbed up 0.2% to 5702.82. Singapore's Straits Times index fell 1.6% at 2984.88. Indonesia's Jakarta Composite index sank 3.2% to 4483.08. Malaysia's KLCI rose 0.1% to 1711.14.
