Asia Pacific share market ended down on Wednesday, 28 October 2015, amid caution ahead of the outcome of a US Federal Reserve's policy meeting due later the day.
Market participants were keeping a close eye on the outcome of the Federal Reserve second-last policy meeting of CY2015 due later in the global day. While it is widely anticipated that the Fed would stand on the sideline this month, investors are interested in seeing policymakers' outlook on economic growth and guidance for future tightening.
The Fed had said it would likely raise rates before 2016, but summer turmoil in global financial markets has thrown that timeline into doubt. Weak US economic figures - consumer confidence sagged and durable goods orders fell for a second straight month in September - added further doubt about whether the world's top economy was strong enough to absorb a rate rise.
Also in focus was a Bank of Japan meeting on Friday, with policy-makers facing pressure to ramp up their record bond-buying stimulus program to counter a downturn in the world's third largest economy.
Among Asian bourses
Australia market loses ground
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The Australian share market declined for third consecutive session, on tracking weak cues from Wall Street overnight, with energy and material stocks leading losses amid fall in commodity prices. But loses were minimal as soft inflation data fuelled hopes of a November rate cut by the RBA. The benchmark S&P/ASX 200 index declined 11 points, or 0.21%, to 5335.20 points, while the broader All Ordinaries index sank 0.20 points, or 0.19%, to 5374.40 points.
The latest Australian Bureau of Statistics (ABS) figures showed the Consumer Price Index (CPI) rose 0.5% in the September quarter 2015, following a rise of 0.7% in the June quarter 2015. The CPI rose 1.5% through the year to the September quarter 2015, following a rise of 1.5% through the year to the June quarter 2015.Even worse, core inflation - which the RBA closely monitors - rose just 0.3% over the quarter and 2.1% over the year. The weaker than expected CPI numbers rekindled market expectations of another RBA rate cut.
Oil explorer stocks were lower on tracking another fall in the price of benchmark Brent crude by 1.5% to $46.84 a barrel. Brent has lost nearly 60% from a peak of more than $US115 in June 2014, mainly because of cooling Chinese demand, record US production and Saudi Arabia's decision not to cut production. Woodside Petroleum declined 2.2% to A$29.64 and Santos lost 4.4% to A$6.06.
Shares of material companies were also down, despite a lift in the iron ore price overnight, with BHP Billiton lower by 2.3% to A$23.78 and Rio Tinto down by 1.4% to A$52.27. Junior iron ore miner Fortescue Metals tumbled 3.4% to A$2.25 after the company said A$1.5 billion available for further debt reduction.
National Australia Bank declined 2.2% to A$31.72 despite lifting its full-year cash profit to $5.84 billion and announced details of the upcoming float of Clydesdale Bank in the UK and the sale of 80% of its life insurance business to Nippon Life of Japan. NAB said it would demerge and conduct an initial public offering for Clydesdale in February 2016. The bank also confirmed reports it would sell 80% of the life insurance business of its wealth division to Nippon for A$2.4 billion, reflecting a PE ratio of 19 times.
Dick Smith shares have lost 33.9% to A$0.84 after the retailer downgraded their full-year profit forecast. The company said profits for this financial year could be A$5 million to A$8 million lower than previous guidance of A$45 million to A$48 million.
Nikkei falls 0.9%
The Japanese share market ended stronger in subdued trade, as upbeat earnings reports blue-chip companies drove buying interest, although, gains were capped amid a wait-and-see mood ahead of the outcome of a US Federal Reserve monetary policy meeting later in the day. Total 20 out of 33 TSE first-section sector sub-indexes ended higher, with gainers were led by pharmaceuticals, information and communication, and air transport issues. The Nikkei Stock Average rose 125.98 points, or 0.67%, to end at 18903.02 points. The broader Topix index grew 0.26%, or 4.08 points, to 1547.19 at the close.
All Nippon Airways' parent company, ANA Holdings, rose 1.7% to 366.30 yen ahead of earning results after the closing bell. After markets closed, the firm posted 51% rise in its six-month net profit as a jump in inbound tourism boosted its international business, while falling oil prices also helped the finances.
Canon Inc dropped 3.2% to 3610 yen, after the camera and office equipment giant cut its full-year profit forecast, blaming stagnant sales of laser and ink jet printers as well as digital cameras in emerging economies in Asia. The company said it now expects a net profit of 225 billion yen against its earlier estimate of 245 billion yen for the calendar yearthe second forecast cut in three months.
Preliminary retail sales data from the Ministry of Economy, Trade and Industry released on Wednesday, showing retail sales fell 0.2% on year in September after rise of 0.8% in August as gasoline prices continued to fall and cooler weather dented demand for air conditioners. But the trend in retail sales remains flat, with seasonally adjusted sales up 0.7% from the previous month after being unchanged. METI maintained its assessment of retail sales, saying they are flat with some weakness.
China market falls from two month peak
The Mainland China stocks ended lower, as investors withdrew some profit off the table after Tuesday's two-month high amid caution ahead of the U.S. Federal Reserve's policy decision later in the day. Meanwhile, continued worry about profit pressures on banks and U.S.-China tensions surrounding naval patrols in the South China Sea also weighed on risk sentiments. All industry groups declined with technology and health-care issues being major losers. The Shanghai Composite Index retreated 1.72%, or 59.14 points, to close at 3375.20 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, slumped 2.22%, or 45.40 points, to 1998.38. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, sank 3.07%, or 78.72 points, to close at 2485.24.
Shares of technology and health-care companies were biggest losers among 10 SSE industry groups due to profit booking. Hundsun Technologies Inc. slumped 6.5%, Lepu Medical Technology (Beijing) Co. slumped 7.7%, while Aier Eye Hospital Group Co. retreated 5%.
Finance and insurance stocks were also down due to weak bank earnings and deposit rate liberalisation, a potential negative for banking profit margins. Industrial & Commercial Bank of China fell 0.4% to 4.61 yuan while Ping An Insurance Group lost 2.4% to 33.55 yuan.
Chinese energy shares also declined amid another fall in the price of benchmark Brent crude by 1.5% to $46.84 a barrel, with China Shenhua Energy Co down 1.4% to 14.19 yuan and China Petroleum & Chemical Corp down 0.6% to 5.06 yuan.
Hong Kong market ends softer
Hong Kong stock market closed down, as sentiments weighed down on caution ahead of the outcome of a US Federal Reserve's policy meeting due later the day. The benchmark Hang Seng Index dropped down 186.16 points, or 0.8%, to 22956.57 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, fell 156.32 points, or 1.46%, to 10558.47 points. Turnover reduced to HK$61 billion from HK$69 billion on Tuesday.
Power Assets (00006) was the top blue-chip winner. It ended up 1% to HK$78.25. Mengniu Dairy (02319) declined 3% to HK$14.76 making it the worst blue chip performer today.
Shares of Chinese financials suffered heavy losses. China Life (02628) fell 1% to HK$30.35. Ping An (02318) slipped 0.5% to HK$44.05 after Daiwa Research lowered its target price.
China Netcom (08071) soared 19% to HK$0.13. China LotSynergy (01371) surged 13% to HK$0.445. It was reported that China plans to lift its ban on online lotteries for the upcoming 13th Five Year Plan.
Cement counters saw strong selling pressure. Anhui Conch (00914) sank 4% to HK$23.6. West China Cement (02233) slipped 1% to HK$1.32. CNBM (03323) dropped 2% to HK$4.82.
Sensex slide for third day in row
Indian stock market ended down for third consecutive day on tracking weak global cues and on cautious ahead of the conclusion of the US Federal Reserve's meeting later in the day and the expiry of monthly derivatives contracts back home on Thursday. Sensex closed 213.68 points down at 27,039.76. Nifty closed 61.70 points down at 8,171.
Axis Bank share price fell despite posting July-September profit in line with expectations on Tuesday, as investors reacted to a sale of loans to asset reconstruction companies at steep discounts.
Exide Industries declined after posting September quarter results. The company posted a net profit of Rs 156.06 core for the quarter ended September 2015 as compared to Rs 125.76 crore for the quarter ended September 2014. However, total Income decreased from Rs 1,769.61 crore for the quarter ended September 2014 to Rs 1,747.40 crore for the quarter ended September 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index declined 0.4% to 8666. South Korea's KOPSI fell 0.1% to 2042.5. Singapore's Straits Times index slipped 0.4% at 3040.5. Indonesia's Jakarta Composite index sank 1.4% to 4608.7. Malaysia's KLCI fell 0.6% to 1686.5. New Zealand's NZX50 eased 0.03% to 5999.
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