Asia Pacific share market declined further on Wednesday, 14 October
2015, as investors continued withdrawing profit off the table amid
concerns about the health of the world's second-biggest economy and its
side effect on the global economy.
Chinese trade data continued to weigh on regional stocks for the second straight day. Sharp falls in China's import figures issued on Tuesday rekindled concerns about the strength of the country's domestic demand and its side effect on the global economy.
The General Administration of Customs data released on Tuesday that showed the country's exports in the month fell 1.1% year on year to 1.3 trillion yuan (US$205 billion) in September, following declines of 6.1% in August and 8.9% in July. Imports, meanwhile, slumped 17.7% in September to 923.9 billion yuan, after sliding 14.3% in August, mostly as a result of weak domestic demand and depressed commodity prices. The combined effect of the two figures meant the trade surplus of the world's second-largest economy in September rose about 2.2% to 376.2 billion yuan.
Adding to those concerns was China's latest consumer price index, which Wednesday showed that inflation moderated in September to 1.6%, slower than a 2% year-over-year rise in August. Other figures overnight also pointed to slower global growth. A survey of financial analysts and investors also showed the German economy, Europe's largest, weakened in October.
Meanwhile, a softer outlook for the global economy led the Monetary Authority of Singapore to ease its currency policy earlier in the day. The central bank said it would target a slower appreciation of the Singapore dollar against a basket of currencies. The city-state uses a managed exchange rate--rather than interest rates--as its main monetary policy tool. Separately, Singapore's trade ministry reported the nation's economy grew in the third quarter, narrowly avoiding a fall into a technical recession, defined as two consecutive quarters of shrinking growth. Gross domestic product rose 0.1% on year on a seasonally adjusted basis, compared with a 2.5% contraction in the second quarter.
Among Asian bourses
Australia market logs second straight loss
The Australian share market ended down for third consecutive session amid weak lead from Wall Street overnight, drop in commodity prices, and deepening worries about in the world's second-largest economy after disappointing economic data from China. Most of the ASX industry blue-chip stocks slid, with energy and material companies being major losers. The benchmark S&P/ASX 200 index declined 5.60 points, or 0.11%, to 5197.30 points, while the broader All Ordinaries index sank 4.20 points, or 0.08%, to 5230.40 points.
Nikkei extends losses on global growth woes
The Japanese share market declined for second straight day, as risk aversion selloff triggered on tracking soft lead from Wall Street overnight and yen appreciation against the dollar. Meanwhile selloff pressure intensified on deepening concerns about Chinese economy after slew of disappointing data. Total 32 out of 33 TSE first-section sector sub-indexes ended down, with Iron & Steel, Rubber Products, Glass & Ceramics Products, Machinery, Metal Products, Nonferrous Metals, Mining, Marine Transportation, and Banks issues being major losers. The Nikkei Stock Average dropped 343.74 points, or 1.9%, to end at 17891 points, meanwhile the broader Topix index declined 2.15%, or 32.30points, to 1470.83 at the close.
China market falls after soft inflation data
The Mainland China's stock market finished down, registering first fall six consecutive sessions, as investors booked part profit amid concerns about the health of the world's second-biggest economy after softer than expected inflation data. However losses were limited amid hopes for further stimulus to support ailing economy. The Shanghai Composite Index eased 0.93%, or 30.79 points, to close at 3262.44 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, descended 1.2%, or 22.97 points, to 1884.16. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, de-grew 1.58%, or 37.04 points, to close at 2305.
Hong Kong market falls 0.7%
Hong Kong stock market declined on tracking softer lead from the Wall Street overnight and weak economic indicators from China. The benchmark index opened 201 points lower and fell as much as 243 points as investors worried about China's deflation risks. The Hang Seng Index declined 160.55 points, or 0.71%, to 22439.91 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, slid 103.27 points, or 1%, to 10334.42 points. Turnover reduced to HK$72.3 billion from HK$79.9 billion on Tuesday.
Indian market declines for the third straight day
The barometer index, the S&P BSE Sensex, fell 69.31 points or 0.26% to 26,777.22, as per the provisional closing data. The 50-unit CNX Nifty dropped 23.80 points or 0.29% at 8,107.90, as per the provisional closing data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.5% to 8522.51. South Korea's KOPSI lost 0.5% to 2009.55. New Zealand's NZX50 climbed up 0.4% to 5727.13. Singapore's Straits Times index fell 0.03% at 2983.92. Indonesia and Malaysia financial market closed for public holiday.
Chinese trade data continued to weigh on regional stocks for the second straight day. Sharp falls in China's import figures issued on Tuesday rekindled concerns about the strength of the country's domestic demand and its side effect on the global economy.
The General Administration of Customs data released on Tuesday that showed the country's exports in the month fell 1.1% year on year to 1.3 trillion yuan (US$205 billion) in September, following declines of 6.1% in August and 8.9% in July. Imports, meanwhile, slumped 17.7% in September to 923.9 billion yuan, after sliding 14.3% in August, mostly as a result of weak domestic demand and depressed commodity prices. The combined effect of the two figures meant the trade surplus of the world's second-largest economy in September rose about 2.2% to 376.2 billion yuan.
Adding to those concerns was China's latest consumer price index, which Wednesday showed that inflation moderated in September to 1.6%, slower than a 2% year-over-year rise in August. Other figures overnight also pointed to slower global growth. A survey of financial analysts and investors also showed the German economy, Europe's largest, weakened in October.
Meanwhile, a softer outlook for the global economy led the Monetary Authority of Singapore to ease its currency policy earlier in the day. The central bank said it would target a slower appreciation of the Singapore dollar against a basket of currencies. The city-state uses a managed exchange rate--rather than interest rates--as its main monetary policy tool. Separately, Singapore's trade ministry reported the nation's economy grew in the third quarter, narrowly avoiding a fall into a technical recession, defined as two consecutive quarters of shrinking growth. Gross domestic product rose 0.1% on year on a seasonally adjusted basis, compared with a 2.5% contraction in the second quarter.
Among Asian bourses
Australia market logs second straight loss
The Australian share market ended down for third consecutive session amid weak lead from Wall Street overnight, drop in commodity prices, and deepening worries about in the world's second-largest economy after disappointing economic data from China. Most of the ASX industry blue-chip stocks slid, with energy and material companies being major losers. The benchmark S&P/ASX 200 index declined 5.60 points, or 0.11%, to 5197.30 points, while the broader All Ordinaries index sank 4.20 points, or 0.08%, to 5230.40 points.
Nikkei extends losses on global growth woes
The Japanese share market declined for second straight day, as risk aversion selloff triggered on tracking soft lead from Wall Street overnight and yen appreciation against the dollar. Meanwhile selloff pressure intensified on deepening concerns about Chinese economy after slew of disappointing data. Total 32 out of 33 TSE first-section sector sub-indexes ended down, with Iron & Steel, Rubber Products, Glass & Ceramics Products, Machinery, Metal Products, Nonferrous Metals, Mining, Marine Transportation, and Banks issues being major losers. The Nikkei Stock Average dropped 343.74 points, or 1.9%, to end at 17891 points, meanwhile the broader Topix index declined 2.15%, or 32.30points, to 1470.83 at the close.
China market falls after soft inflation data
The Mainland China's stock market finished down, registering first fall six consecutive sessions, as investors booked part profit amid concerns about the health of the world's second-biggest economy after softer than expected inflation data. However losses were limited amid hopes for further stimulus to support ailing economy. The Shanghai Composite Index eased 0.93%, or 30.79 points, to close at 3262.44 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, descended 1.2%, or 22.97 points, to 1884.16. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, de-grew 1.58%, or 37.04 points, to close at 2305.
Hong Kong market falls 0.7%
Hong Kong stock market declined on tracking softer lead from the Wall Street overnight and weak economic indicators from China. The benchmark index opened 201 points lower and fell as much as 243 points as investors worried about China's deflation risks. The Hang Seng Index declined 160.55 points, or 0.71%, to 22439.91 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, slid 103.27 points, or 1%, to 10334.42 points. Turnover reduced to HK$72.3 billion from HK$79.9 billion on Tuesday.
Indian market declines for the third straight day
The barometer index, the S&P BSE Sensex, fell 69.31 points or 0.26% to 26,777.22, as per the provisional closing data. The 50-unit CNX Nifty dropped 23.80 points or 0.29% at 8,107.90, as per the provisional closing data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.5% to 8522.51. South Korea's KOPSI lost 0.5% to 2009.55. New Zealand's NZX50 climbed up 0.4% to 5727.13. Singapore's Straits Times index fell 0.03% at 2983.92. Indonesia and Malaysia financial market closed for public holiday.
