Asia Pacific Market: Stocks decline ahead of FOMC rate decision

Asia Pacific share market declined on Tuesday, 15 September 2015, following declines in US and European bourses overnight, as investors stayed on the sideline amid concerns about China's slowing economy and on caution ahead of the US central bank's policy meeting. 

Market participants largely took a wait-and-see approach ahead of the two-day Federal Open Market Committee meeting concluding on Thursday. Economists are expecting that the Federal Open Market Committee (FOMC) will signal an initial a measured tightening soon, but hold off a September rate hike. The World Bank's chief economist joined Christine Lagarde, managing director of the International Monetary Fund, in warning that a rate rise could trigger “panic and turmoil” in emerging markets. 

Many market participants expects the Fed likely decline to raise short-term rates at its closely watched meeting, given uncertainties over growth in China. The market is eager to get some hints from the accompanying statement and comments from Chair Janet Yellen on the monetary policy outlook. Since PBOC's devaluation of renminbi and the financial market volatility in mid-August, speculations for Fed funds rate hike in September have greatly diminished. It is now widely anticipated that the Fed would stand on the sideline this month. 

Among Asian bourses
 
Japan stocks up slightly
 
The Japanese share market managed to close above the neutral line after trimming early gains, as the Bank of Japan (BOJ) maintained its expansionary monetary policy at an annual pace of 80 trillion yen, as widely expected. However, overnight fall at Wall Street along with strengthening Yen against U.S. Dollar capped the upside in the Nikkei. Total 17 out of Topix's 33 industry groups declined, with information & communication, financial business, iron & steel and construction issues led losses. The Nikkei Stock Average advanced 60.78 points, or 0.34%, to end at 18026.48 points. The broader Topix index dropped 0.01%, or 0.17 point, to 1462.24 at the close in Tokyo.

Australian market ends down on global concern
 
The Australian share market closed down, as risk aversion selloff triggered after the Reserve Bank's negative outlook for the local economy. Malcolm Turnbull's appointment as Prime Minister had limited influence on the market. Investors are largely opted a wait and see stance because of uncertainty about the US Federal Reserve's highly anticipated meeting on interest rate decision due on Thursday. All ASX sectors ended down, with financial, realty, material, industrial, and energy issues being major drag on the market. The benchmark S&P/ASX 200 index declined 78.10 points, or 1.53%, to 5018.40 points. The broader All Ordinaries index ended down 73.90 points, or 1.44%, at 5046.60. 

China stocks decline further 
 
The Mainland China's stock market extended losses, taking the benchmark index briefly below the psychological level of 3000 as investors worried about the slowing economy. Investors' risk sentiments were hurt after August industrial output and investment data on Sunday pointed the slowdown in the world's second largest economy is deepening. The Shanghai Composite Index tanked 3.52%, or 109.63 points, to 3005.17 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 4.97%, or 82.63 points, to 1580.26. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, sank 5.7%, or 108.66 points, to close at 1797.56. 

Sensex slides on weak global cues
 
Weakness in Asian stocks and caution ahead of a US Federal Reserve meeting later this week pulled key benchmark indices lower. The barometer index, the S&P BSE Sensex dropped 178.82 points or 0.69% to 25,677.88, as per provisional closing data. The 50-unit CNX Nifty lost 43.15 points or 0.55% at 7,829.10, as per provisional closing data. Metal and auto stocks led the decline for key indices which hovered in negative zone almost throughout the trading session. 

The latest data showed that inflation based on the consumer price index (CPI) remained benign last month. The headline CPI inflation eased to 3.66% in August 2015 from 3.69% in July 2015. Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.

Elsewhere in the Asia Pacific region: Taiwan's Taiex index declined 0.6% to 8260. South Korea's KOPSI rose 0.3% to 1937.56. New Zealand's NZX50 slipped 0.2% to 5652.39. Singapore's Straits Times index lost 1% at 2841.94. Indonesia's Jakarta Composite index dropped 1% to 4347.16. Malaysia's KLCI rose 0.5% to 1647.54. 

FPIs turn net buyers in equities

Net inflow of Rs 105.90 crore on 14 September 2015 

Foreign portfolio investors (FPIs) bought shares worth a net Rs 105.90 crore from the secondary equity market yesterday, 14 September 2015. This compares with their selling of stocks totaling Rs 632.35 crore during the preceding trading session on 11 September 2015. 

The net inflow of Rs 105.90 crore on 14 September 2015 was a result of gross purchases of Rs 2617.61 crore and gross sales of Rs 2511.71 crore. The barometer index, the S&P BSE Sensex, jumped 246.49 points or 0.96% to settle at 25,856.70. 

There was an inflow of Rs 30.23 crore into FPIs from the category 'primary markets & others' on 14 September 2015. 

FPIs have offloaded stocks worth a net Rs 6703.03 crore in this month so far (till 14 September 2015). They sold shares worth a net Rs 16842.54 crore into the secondary equity markets last month. 

FPIs have bought shares worth a net Rs 4665.58 crore from the secondary equity markets in calendar year 2015 so far (till 14 September 2015). They bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

The inflow of FPIs into the category 'primary markets & others' has totaled Rs 232.24 crore in this month so far (14 September 2015). This compares with net outflow of Rs 34.73 crore from this category in August 2015. 

The inflow of FPIs into the category 'primary markets & others' has totaled Rs 16385.98 crore in calendar year 2015 so far (till 14 September 2015). The inflow of FPIs into the category 'primary markets & others' stood at Rs 12615 crore in the calendar year 2014. 

Rupee closes lower

At 66.46/47 per dollar 

Rupee closed lower at 66.46/47 per dollar on Friday (04 September 2015), versus its previous close of 66.2350/2450 per dollar.

Asia Pacific Market: Stocks down ahead of US jobs report

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.

Selling vigour of FPIs eases

Net outflow of Rs 332.25 crore on 3 September 2015 

After pressing heavy selling of Indian stocks on 2 September 2015, the selling vigour of foreign portfolio investors (FPIs) eased on 3 September 2015. FPIs offloaded shares worth a net Rs 332.25 crore into the secondary equity market on 3 September 2015. This compares with their massive selling of stocks worth Rs 1525.81 crore on 2 September 2015. 

The net outflow of Rs 332.25 crore on 3 September 2015 was a result of gross purchases of Rs 3336.80 crore and gross sales of Rs 3669.05 crore. The S&P BSE Sensex jumped 311.22 points or 1.22% to settle at 25,764.78 on 3 September 2015, its highest closing level since 31 August 2015. 

There was a net outflow of Rs 3.42 crore from the category 'primary markets & others' on 3 September 2015. 

FPIs resorted to heavy selling of Indian stocks last month. They sold shares worth a net Rs 16842.54 crore into the secondary equity markets in August 2015. There was net outflow of Rs 34.73 crore from the category 'primary markets & others' in August 2015. 

FPIs have bought shares worth a net Rs 8299.80 crore from the secondary equity markets in calendar year 2015 so far (till 3 September 2015). They bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

The inflow of FPIs into the category 'primary markets & others' has totaled Rs 16124.80 crore in calendar year 2015 so far (till 3 September 2015). The inflow of FPIs into the category 'primary markets & others' stood at Rs 12615 crore in the calendar year 2014.