Asia Pacific shares closed mixed on Thursday, 08 October 2015, as
investors opted to withdrawing some profit off the table on caution
ahead of BoE monetary policy decisions and FOMC minutes later today in
the global market. The MSCI's broadest index of Asia-Pacific shares
outside Japan lost 0.5%.
Market participants were cautiously awaiting for the BoE monetary policy decisions and FOMC minutes due later today. BoE is widely expected to keep interest rate unchanged at 0.50% and asset purchase target at GBP 375 billion. A major focus is on the vote split where markets expected Ian McCafferty to continue to dissent on rate decision and vote for a hike.
Sterling has been under some pressure since July on speculations that recent market turmoil would delay BoE's rate hike deep into mid next year. But the pound is supported this week on a couple of factors including improving risk market sentiments, better than expected data. Also, in the latest update, IMF raised UK growth forecast for 2015 from 2.4% to 2.5% and kept that for 2016 at 2.2%. That compared to the backdrop of lowering global growth forecast from 3.3% to 3.1% in 2015 and from 3.8% to 3.6% in 2016. ECB monetary policy meeting accounts will also be watched in European session.
Regarding FOMC minutes, markets main focus will remain on whether Fed will lift interest rates from the current near zero level by the end of the year. The Fed opted not to hike rates in September in the wake of cooling global growth and fears of a deepening slowdown in China. Last week's soft U.S. non-farm employment report prompted markets to scale back expectations that the Fed would hike rates later this year.
Former Fed chair Ben Bernanke said that a few months are needed to gauge how the recent global market turmoil would affect the US economy. And that will set up a tough call for Fed officials to decide on rates. Bernanke noted that was a "pretty good domestic expansion" that could withstand the drag from emerging markets. Meanwhile, IMF repeated its urge for Fed to refrain from hiking rates "until there are further signs of inflation rising steadily, with continued strength in the labor market".
Investors will have an opportunity to gauge the thinking of U.S. central bank officials when the minutes of the Fed's September meeting, at which it opted not to hike rates, are released later in the day.
St. Louis Fed President James Bullard, Minneapolis Fed President Narayana Kocherlakota and San Francisco Fed President John Williams will also speak later on Thursday.
Among Asian bourses
Nikkei falls 1% after soft factory order data
The Japanese share market finished softer, snapping six-day winning streak, with sentiment dampened by data showing Japan's machinery orders- a key indicator of the economy's strength- fell for a third straight month in August. But losses were limited with a growing proportion of market observers betting the BOJ will additionally ease its monetary policy at its next decision-making meeting on Oct. 30. Total 24 out of 33 TSE first-section sector sub-indexes weighed down, with decliners were led by Air Transportation, Retail Trade, Pharmaceutical, Foods, Agriculture & Forestry, and Precision Instruments issues. The Nikkei Stock Average tumbled 181.81 points, or 1%, to end at 18141.17 points, meanwhile the broader Topix index shrank 0.8%, or 11.77 points, to 1481.40 at the close.
Australia market ends modestly up
The Australian share market closed modestly higher after paring early gains late afternoon on caution ahead of BoE monetary policy decisions and FOMC minutes later today in the global market. The market strength was largely due to strong performances from materials and energy blue-chip stocks and banks which helped to overshadow losses elsewhere. The benchmark S&P/ASX 200 index and the broader All Ordinaries index both gained 0.2% to 5210.40 points and 5241.40 points, respectively.
Shares of energy and resources companies extend.
China's Shanghai Composite surges after week-long holiday
The Mainland China's stock market ended sharply higher on first day of trade after a week-long holiday, catching up to a rally in global equities. China's market rally was partly driven by the positive economic data released over the holiday break, such as a slightly better than expected official manufacturing index and speculation the government will take more steps to boost the world's second-biggest economy. All 10 SSE sectors added strength, with technology and health-care companies leading gains. The Shanghai Composite Index surged 2.97%, or 90.58 points, to 3143.36 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 4%, or 68.61 points, to 1785.39. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, spurted 5.17%, or 107.64 points, to close at 2190.31.
Hong Kong market falls on profit taking
Hong Kong stock market closed down, shrugging off the positive cues from the mainland and Wall Street, as investors booked recent gains on caution ahead of the release of minutes from the Federal Reserve's latest policy meeting. The Hang Seng Index declined 160.85 points, or 0.71%, at 22354.91 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 107.38 points, or 1.03%, to 10287.41 points. Turnover reduced to HK$93.45 billion from HK$108.67 billion on Wednesday.
Indian stocks fall on profit booking
Indian stocks market closed weaker on the back of profit booking and weak rupee. At 15:30 IST, Sensex slid 190.04 points at 26,845.81 while Nifty lost 48.05 points at 8,129.35. Sensex and Nifty gained 1,419 points and 381.70 points in the past six trading sessions till October 7.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.6% to 8445.96. South Korea's KOPSI added 0.78% to 2019.53. New Zealand's NZX50 fell 0.4% to 5625.78. Singapore's Straits Times index slipped 0.5% at 2947.03. Indonesia's Jakarta Composite index rose 0.1% to 4491.43. Malaysia's KLCI climbed up 0.2% to 1692.20.
Market participants were cautiously awaiting for the BoE monetary policy decisions and FOMC minutes due later today. BoE is widely expected to keep interest rate unchanged at 0.50% and asset purchase target at GBP 375 billion. A major focus is on the vote split where markets expected Ian McCafferty to continue to dissent on rate decision and vote for a hike.
Sterling has been under some pressure since July on speculations that recent market turmoil would delay BoE's rate hike deep into mid next year. But the pound is supported this week on a couple of factors including improving risk market sentiments, better than expected data. Also, in the latest update, IMF raised UK growth forecast for 2015 from 2.4% to 2.5% and kept that for 2016 at 2.2%. That compared to the backdrop of lowering global growth forecast from 3.3% to 3.1% in 2015 and from 3.8% to 3.6% in 2016. ECB monetary policy meeting accounts will also be watched in European session.
Regarding FOMC minutes, markets main focus will remain on whether Fed will lift interest rates from the current near zero level by the end of the year. The Fed opted not to hike rates in September in the wake of cooling global growth and fears of a deepening slowdown in China. Last week's soft U.S. non-farm employment report prompted markets to scale back expectations that the Fed would hike rates later this year.
Former Fed chair Ben Bernanke said that a few months are needed to gauge how the recent global market turmoil would affect the US economy. And that will set up a tough call for Fed officials to decide on rates. Bernanke noted that was a "pretty good domestic expansion" that could withstand the drag from emerging markets. Meanwhile, IMF repeated its urge for Fed to refrain from hiking rates "until there are further signs of inflation rising steadily, with continued strength in the labor market".
Investors will have an opportunity to gauge the thinking of U.S. central bank officials when the minutes of the Fed's September meeting, at which it opted not to hike rates, are released later in the day.
St. Louis Fed President James Bullard, Minneapolis Fed President Narayana Kocherlakota and San Francisco Fed President John Williams will also speak later on Thursday.
Among Asian bourses
Nikkei falls 1% after soft factory order data
The Japanese share market finished softer, snapping six-day winning streak, with sentiment dampened by data showing Japan's machinery orders- a key indicator of the economy's strength- fell for a third straight month in August. But losses were limited with a growing proportion of market observers betting the BOJ will additionally ease its monetary policy at its next decision-making meeting on Oct. 30. Total 24 out of 33 TSE first-section sector sub-indexes weighed down, with decliners were led by Air Transportation, Retail Trade, Pharmaceutical, Foods, Agriculture & Forestry, and Precision Instruments issues. The Nikkei Stock Average tumbled 181.81 points, or 1%, to end at 18141.17 points, meanwhile the broader Topix index shrank 0.8%, or 11.77 points, to 1481.40 at the close.
Australia market ends modestly up
The Australian share market closed modestly higher after paring early gains late afternoon on caution ahead of BoE monetary policy decisions and FOMC minutes later today in the global market. The market strength was largely due to strong performances from materials and energy blue-chip stocks and banks which helped to overshadow losses elsewhere. The benchmark S&P/ASX 200 index and the broader All Ordinaries index both gained 0.2% to 5210.40 points and 5241.40 points, respectively.
Shares of energy and resources companies extend.
China's Shanghai Composite surges after week-long holiday
The Mainland China's stock market ended sharply higher on first day of trade after a week-long holiday, catching up to a rally in global equities. China's market rally was partly driven by the positive economic data released over the holiday break, such as a slightly better than expected official manufacturing index and speculation the government will take more steps to boost the world's second-biggest economy. All 10 SSE sectors added strength, with technology and health-care companies leading gains. The Shanghai Composite Index surged 2.97%, or 90.58 points, to 3143.36 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 4%, or 68.61 points, to 1785.39. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, spurted 5.17%, or 107.64 points, to close at 2190.31.
Hong Kong market falls on profit taking
Hong Kong stock market closed down, shrugging off the positive cues from the mainland and Wall Street, as investors booked recent gains on caution ahead of the release of minutes from the Federal Reserve's latest policy meeting. The Hang Seng Index declined 160.85 points, or 0.71%, at 22354.91 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 107.38 points, or 1.03%, to 10287.41 points. Turnover reduced to HK$93.45 billion from HK$108.67 billion on Wednesday.
Indian stocks fall on profit booking
Indian stocks market closed weaker on the back of profit booking and weak rupee. At 15:30 IST, Sensex slid 190.04 points at 26,845.81 while Nifty lost 48.05 points at 8,129.35. Sensex and Nifty gained 1,419 points and 381.70 points in the past six trading sessions till October 7.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.6% to 8445.96. South Korea's KOPSI added 0.78% to 2019.53. New Zealand's NZX50 fell 0.4% to 5625.78. Singapore's Straits Times index slipped 0.5% at 2947.03. Indonesia's Jakarta Composite index rose 0.1% to 4491.43. Malaysia's KLCI climbed up 0.2% to 1692.20.
