Stocks met with heavy selling from the outset of Monday's trading after European and U.S. equities retreated Friday. Investor appetite for risk assets diminished after a weekend poll in Britain showed that people who call for the country to leave the EU surpassed those wanting it to stay as an EU member.
Until the referendum on June 23 on whether to leave the EU, the market could show moves to factor in an exit by Britain from the EU as opinion polls showed an exit is a real possibility.
Among Asian bourses
Nikkei dives 3.5% down
The Japan share market stumbled to a two-month low, dragged down by yen ascent against basket of major currencies yen amid worries over global growth and the possible impact of Britain quitting the EU as opinion polls showing an exit is a real possibility. The benchmark Nikkei 225 index slumped 3.51%, or 582.18 points, to 16,019.18 by the close, its lowest since mid-April, while the broader Topix index of all first-section shares was down 3.47%, or 46.18 points, to finish at 1,284.54. Falling issues overwhelmed rising ones 1,903 to 40 in the TSE's first section, while 15 issues were unchanged. Volume fell to about 1.88 billion shares from Friday's about 2.21 billion shares.
Shares of exporters retreated, weighed by yen appreciation against greenback and euro. A stronger yen is generally a negative for exporter as it reduces overseas profits when converted into local currency. The dollar sank to 105.79 yen from 106.93 yen Friday in New York, while the euro sank to 119.28 yen against 120.30 yen, trading around its lowest level against the yen since April 2013. Industrial-machinery maker Hitachi fell 6% and automaker Mazda Motor Corp. sank 6%. Camera maker, Konica Minolta, and printer producer Brother Industries also lost ground on increasing worries about deteriorated earnings as the companies rely substantially on sales in Europe.
Energy explorer Inpex Corp. declined 5.8% as crude fell a third day after the number of rigs drilling for oil in the U.S. rose for a second week.
More From This Section
By contrast, Calsonic Kansei jumped 4.95% on a news report that several companies, including an overseas fund, apparently joined the first round of bidding for shares owned by automaker Nissan in the auto parts maker.
China Stocks end 3.1% down
Mainland China stock market tumbled after a long weekend, as investor confidence took a hit after latest official data showing China's fixed-asset investment growth eased to 9.6% on-year in the January-May period. Investor sentiment was also fragile ahead of MSCI's decision on whether it will include China A-shares and on fears that Britain may vote to leave the European Union. The CSI300 index of the largest listed companies in Shanghai and Shenzhen declined 3.09%, to 3066.34, while the Shanghai Composite Index dropped 94.09%, to 2833.07 points. The market was closed on Thursday and Friday for public holiday.
Fixed-asset investment in China increased 9.6% in the January-to-May period, the slowest pace since 2000, National Bureau of Statistics data showed Monday. Industrial production for May rose 6% from a year earlier, while retail sales climbed 10%.
Hong Kong Market tumbles 2.52%
The Hong Kong stock market finished down, as weak investment data fuelled worries about the health of the Chinese economy and on fears that Britain may vote to leave the European Union. The benchmark Hang Seng Index declined 529.65 points, or 2.52%, to 20512.99 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, sank 212.05 points, or 2.4%, to 8619.92. Turnover increased to HK$65.1 billion from HK$54.5 billion on Friday.
Market heavyweights were lower. China Mobile (00941) slid 1.97% to HK$87.3, while HSBC (00005) dropped 2.94% to HK$47.9. Mengniu Dairy (02319) tumbled 5.71% to HK$13.22, making itself the largest blue-chip loser.
Stocks holding UK assets were sharply lower ahead of a referendum that could pull Britain out of the European Union. Standard Chartered (02888) plunged 4.39% to HK$56.65. CKH Holdings (00001) dipped 2.18% to HK$89.85.
US oil prices fell below US$50, dragging down oil majors. Sinopec (00386) sank 3.24% to HK$5.38. PetroChina (00857) plummeted 4.42% to HK$5.41 and CNOOC (00883) fell 2.09% to HK$9.39.
Sensex, Nifty hit 2-1/2 week closing low
Weakness in global stocks and anemic domestic industrial production data for April 2016 triggered a fresh slide of key benchmark indices today, 13 June 2016. The barometer index, the S&P BSE Sensex lost 238.98 points or 0.9% to settle at 26,396.77. The losses for the Nifty 50 index were lower in%age terms than those for the Sensex. The Nifty shed 59.45 points or 0.73% to settle at 8,110.60. The Sensex and the Nifty, both, hit their lowest closing level in 2-1/2 weeks. Capital goods, realty and bank stocks led decline on the bourses. Key indices dropped for the third day in a row today, 13 June 2016.
Index heavyweight and housing finance major HDFC declined 1.58%. The company announced after market hours on Friday, 10 June 2016 that it will issue secured redeemable non-convertible debentures amounting to Rs 1000 crore on private placement basis. Debentures carry a coupon rate of 8.46% per annum and tenor of 10 years and will mature on 15 June 2026. The issue will open on 15 June 2016 and will close on the same day. The object of the issue is to augment the long term resources of the company. The proceeds will be utilized for financing/refinancing the housing finance requirements of the company.
Yes Bank rose 0.64% after the Reserve Bank of India (RBI) raised the ceiling on investment by foreign institutional investors (FIIs) to 74% of the private sector bank's paid up capital from earlier 60%. RBI's nod for higher ceiling on investment by FIIs came after Yes Bank's board of directors and shareholders approved the proposal. The RBI has capped the total foreign shareholding from all sources in Yes Bank at 74% of the bank's equity. Last month, the Cabinet Committee on Economic Affairs cleared Yes Bank's proposal for increase in foreign investment limit in the bank's equity capital to 74% from 41.87% without any sub-limits.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 sank 0.68% to 6924.27. South Korea's KOSPI index fell 1.9% to 1979.06. Taiwan's Taiex index slipped 2.1% to 8536.22. Malaysia's KLCI declined 0.7% to 1629.77. Indonesia's Jakarta Composite index fell 0.8% to 4807.23. Singapore's Straits Times index fell 1.3% to 2785.43.
Powered by Capital Market - Live News