The headline indexes of the Asia Pacific market closed modestly lower on Friday, April 12, 2013, as investors chose to book recent gains on cautious ahead of euro-area finance ministers meet in Dublin and key macroeconomic data from world top two economies.
Regional bourses commenced today's trade with firm footing following overnight rally in the US benchmark DOW to another record high of 14865 and S&P 500 jump to 1593.37. The better than expected jobless claim figure released overnight somewhat eased the concern of slowing labor market recovery in US.
But, early momentum disappeared later in the day on cautious ahead of key macroeconomic data from the two biggest economy of the world. In the US, retail sales data will the major focus today, followed by PPI. US will also release Michigan sentiment and business inventories. In the China, the National Bureau of Statistics will release economic growth data for the first quarter on April 15 along with March figures for industrial production and retail sales and first- quarter fixed-asset investment.
Also, one reason for the bulls taking a little money off the table is the start of the two-day Ecofin meeting where an extension to Portugal's bailout repayment terms is expected to be discussed. The ballooning Cypriot bailout and the issue of Slovenia will also be key focal.
The cost of bailing out Cyprus has swollen to 23 billion euro (US$30 billion), with the crisis-hit country having to take on the lion's share of the measures needed to avoid bankruptcy, according to a draft document by the country's international creditors. As part of the original bailout agreement, Cyprus agreed to overhaul its bloated banking industry by breaking up its second-largest bank, Laiki, and imposing losses on savers who have more than 100,000 euro in another lender, the Bank of Cyprus. In the latest draft document, the troika has revised the cost of bailing out Cyprus amid a gloomier economic outlook, adding an additional 6 billion euro to the bill.
In the Asia Pacific region, Tokyo share market closed mixed on Friday, April 12, 2013, as investors locked in profit after the benchmark surged to multi-year highs, with the Nikkei Stock Average down by 64.02 points to end the day at 13,485.14, while broader Topix index grew marginal 1.28 points to 1148.57. For the week, the benchmark index added 5.1% and is now up 30% for the calendar year to date.
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Export-related stocks closed mixed in Tokyo as some participants opted to book recent gain due to the dollar weakness against the yen after newly installed Bank of Japan Gov. Haruhiko Kuroda said that the central bank's inflation target is flexible and it will keep an eye out for asset bubbles as it conducts its new easing moves. Canon Inc declined 0.5% to 3675 yen, Sony Corp 1.5% to 1659 yen, and Advantest Corp1.2% to 1375 yen, but Sharp Corp extended recent gains by 7% to 335 yen.
Automakers share rebounded despite news of a major recall. Honda Motor added 0.3% to A$3955 yen, Toyota Motor Corp 0.4% to 5660 yen, and Nissan Motor Co 0.9% to 1052 yen. The three firms were reportedly recalling more than 3 million vehicles due to problems with airbags made by Takata Corp.
Fast Retailing declined 0.9% to 34250 yen on disappointment after its first-half profit failed to meet market estimates. Fast Retailing Co had reported its net profit rose by 13.2% to 65.45 billion yen in the six months to the end of February, compared with 57.80 billion yen a year earlier, supported by solid performance at overseas outlets of its Uniqlo casual clothing brand. Six-month sales rose 17% to 614.84 billion yen. For the full year to August, Fast Retailing raised its forecast for net profit to 91.5 billion yen from 87 billion yen. Revenue is now pegged at 1.103 trillion yen, up from 1.069 trillion yen previously foreseen.
In Australia, the Australian share market finally closed slight higher after flirting with negative and positive territory, with stout performances from realty, energy, and retailers and lenders offset by weakness in the heavyweight mining and industrial sectors. The benchmark S&P/ASX200 index added 10.20 points from prior day to finish at 5017.30, while broader All Ordinaries index grew 9.40 points to close at 5019.70.
financial and retailers stocks went higher in Australia on rumor regarding possible rate cut from central bank after data showed employment fell a steeper-than-expected 36,100 in March. Commonwealth Bank added 0.1% to A$68.11, Australia & New Zealand Banking Group 0.26% to A$28.745, Westpac 0.1% to A$31.555, and National Australia Bank 0.2% to A$31.65.
Supermarket operators Woolworths ended the day 1.4% up at A$34.37 after reporting a 2.5% increase in sales to $14.4 billion, despite challenging retail conditions. Coles-owner Wesfarmer increased by 0.4% to A$40.69 and Wotif 1% to A$4.92.
In New Zealand, Auckland shares finished higher, pushing the NZX 50 Index 26.23 points, or 0.6%, higher to a record 4,435.76, the highest since the inception of the gross index in 2003, as retirement village operator Ryman Healthcare and Port of Tauranga charted new highs. Within the index, 27 stocks rose, 16 fell and seven were unchanged.
In South Korea, Seoul shares declined, with the Kospi Composite dropped 1.3% to 1924.23, as risk aversion selloff due to mounting worries about corporate earnings and geopolitical tension with North Korea. Risk sentiments turned bearish after Japan's monetary revolution and the Korean central bank downward revision of growth forecasts for 2013 to 2.6%. The Bank of Japan governor's decision to go all out for growth may have been a boon for investors in the Nikkei, but it is having the opposite effect for many South Korean companies.
In China, the Mainland shares extended fall for second straight day, with materials, energy, consumer discretionary, financials, and tech heavyweights led the fall, as risk adverse investors continued offloading risk assets after country's credit rating cut by global rating agency Fitch Ratings Inc. and on cautious ahead of the release of key macroeconomic data on Monday. The Shanghai Composite Index dropped 0.6% to 2,206.78 at close. The measure lost 0.8% this week, a third week of declines. The Shanghai index has fallen 9% from a Feb. 6 high amid concern steps to cool property prices will drag on economic growth.
In Hong Kong, city bourses heavyweights closed tad below the neutral line after fluctuating between negative and positive territory, snapping three-days of winning streak on profit taking interest amidst cautious ahead of Chinese key macroeconomic numbers coming week. The benchmark Hang Seng index lost 12.22 points or 0.06% from previous session to finish at 22,089.05 on trading turnover of HK$49.88 billion. The HSI rose 1.7% for the week.
In India, Indian benchmark indices continued to hover in red in mid-afternoon trade. Shares IT major Infosys were off more than 20% after company's tepid revenue growth guidance for the year ending 31 March 2014. Weakness in European and Asian stocks also weighed on sentiment. The barometer index, the S&P BSE Sensex, was down 291.87 points or 1.57%, off close to 85 points from the day's high and up about 65 points from the day's low. The market breadth was negative.
Elsewhere, Malaysia's KLSE Composite shed 0.5% Singapore's STI erased 0.4%. Taiwan's Taiex lost 0.5%. Indonesia's Jakarta Composite grew 0.3%.
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