Asia Pacific share market declined on Friday, 29 April 2016, as risk sentiments turned subdued on tracking weak lead from Wall Street overnight and on caution before release of important economic indicators globally next week.
Regional stock market commenced trading with backfoot after BoJ's inaction on Thursday the US advance GDP reading fell short of expectations. The US Q1 GDP growth slowed to 0.5%, comparing to prior quarter's 1.4% and missed expectation of 0.7%. Fed again left the monetary policy unchanged with Kansas City Fed president Esther George the only members favoring a rate hike. Policymakers downgraded the assessment of economic activities but added the moderation in pace should be transitory. While acknowledging improvement in the labor market, the central bank saw little evidence that inflation and inflation expectations were firming. The 'risk' language was removed, while discussions are that 'balance of risk' was not found, in the April statement. It was, however, replaced by the pledge that the Fed would continue to 'closely monitor inflation indicators and global economic and financial developments'.
BoJ kept monetary policies unchanged. Interest was held at -0.1% while target of annual monetary base expansion was maintained at JPY 80T. Meanwhile, BoJ created a JPY 300b loan program to provide funds to financial institutions hit by earthquake, at zero interest. BoJ also lowered inflation forecast and pushed back the timing for meeting 2% target by 6 months. That is, BoJ now projects inflation to climb back to target until March 2018. The move, or the lack of move, caught markets by a surprise and there were some expectations of additional monetary stimulus from this meeting. Japan national CPI core dropped to -0.3% yoy in March while Tokyo CPI core was unchanged at -0.3% yoy. Unemployment rate dropped to 3.2%, household spending dropped -5.3% yoy, retail sales dropped -1.1% yoy, industrial production rose 3.6% mom, housing starts rose 8.4% yoy.
Among Asian bourses
Australia Market ends 0.51% up on resources rally
Australian share market ended stronger after reversing early losses on Friday, 29 April 206, with shares of materials and resources and energy companies being major gainers on stronger commodity prices. At close of trade, the benchmark S&P/ASX 200 added 26.80 points, or 0.51%, to 5252.20. The broader All Ordinaries grew 26.60 points, or 0.5%, to 5316.
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Shares of materials and energy companies went up on tracking strength on commodity prices. Oil prices advanced during Asian hours, with U.S crude futures up 0.46% at $46.24 a barrel. It rose 1.54% overnight. Global benchmark Brent futures also advanced 0.29% to $48.28. In the metal commodities space, Shanghai steel futures were up 5.97%, while the Dalian iron ore futures added 5.96%. Among miners, BHP Billiton grew 0.5% to A$20.68, Rio Tinto 2.5% to A$51.55 and Fortescue Metals 4.9% to A$3.41. Among energy stocks, Santos surged 2.1% to A$4.80, Woodside Petroleum 2.2% to A$28.34 and Origin Energy 0.4% to A$5.49.
Gold stocks rallied as the price of the precious metal hit a year high overnight. Northern Star was 5.4% higher at A$3.87 and Newcrest 3.49% to A$18.97.
The banks and financial were up ahead of next week's earnings updates and Tuesday's rates decision. Westpac Banking Corp rose 1.2% to A$31.05, ANZ Banking Group 1% to A$24.27, National Australia Bank 0.7% to A$27.19, and Commonwealth Bank 0.1% to A$73.89.
China Market falls to fresh 1-month low
Mainland China stock market ended down after China central bank has raised the yuan exchange rate against the US dollar at the sharpest pace since 2005 and on caution ahead of April factory PMI data during weekend. Sentiments were also downbeat on rising worries about corporate creditworthiness. The benchmark Shanghai Composite Index declined 7.27 points, or 0.25%, to 2938.32. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, fell 3.83 points, or 0.12%, to 3156.75.
Total 6 out of 10 SSE industry group declined, with telecommunication services issue being biggest loser, down 0.7%, followed by financial, down 0.5%. Meanwhile energy and industrial issues each lost 0.5% and 0.4%, respectively. Bucking the trend, consumer staples issue rebounded 1.5%, meanwhile material was up 0.5%.
Banking stocks sagged after Chinese lenders posted flat profit growth amid rising bad debt. Resources shares rebounded after a sharp correction over the past sessions that were triggered by a regulatory crackdown on speculation in the commodities market.
Hong Kong Market suffers steepest loss in three weeks
The Hong Kong stock market finished the session lower on tracking weak lead from Wall Street overnight and on caution ahead of key economy data globally. Most of the industry group declined, with shares of energy producers being major losers sue to poor results from PetroChina and Cnooc. The benchmark Hang Seng Index dropped 320.98 points, or 1.5%, to 21067.05 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 121.46 points, or 1.34%, to 8939.47 points. Turnover reduced to HK$60.7 billion from HK$67.8 billion on Thursday. The local market will close on Monday for May Day holiday.
Global research company IDC forecast worldwide tablet shipments to register decline of 14.7% for the first quarter, the sixth quarter of decline in a row. Lenovo (00992) plunged 3.6% to HK$6.17.
Energy stocks were hardest hit on weaker than expected earnings from industry heavyweights. PetroChina (00857) slid 3.6% to HK$5.71 after reported the worst quarterly loss of RMB13.8 billion since its IPO. CNOOC (00883) dipped 2.3% to HK$9.66 after reporting a decline in revenue. Sinopec (00386) also fell 1.3% to HK$5.53 even though its 1Q earnings doubled. Kunlun Energy (00135) slipped 3.4% to HK$6.76. Aluminum Corp. of China. lost 2.6 percent after first-quarter profit dropped 60 percent from a year earlier on slumping metal prices.
Sensex, Nifty hit lowest level in more than two weeks
After hovering near the flat line in early afternoon trade, key benchmark indices lost ground in afternoon trade, with the barometer index, the S&P BSE Sensex, and the Nifty 50 index, both, hitting their lowest level in more than two weeks. At 13:16 IST, the Sensex was down 142.83 points or 0.56% to 25,460.27. The Nifty was currently down 41.30 points or 0.53% at 7,805.95.
ICICI Bank was down 2.89% at Rs 233.20 after the bank's net profit fell 75.98% to Rs 701.89 crore on 14.51% increase in total income to Rs 18590.86 crore in Q4 March 2016 over Q4 March 2015. The result was announced during trading hours today, 29 April 2016.
Bharti Airtel lost 2.82% after the company said it will undertake buyback of shares only after the approval from Delhi High Court for the scheme of amalgamation of its wholly owned subsidiary with the company. Bharti Airtel said that the scheme of amalgamation of Augere Wireless Broadband India (Augere), a wholly owned subsidiary with the company is under consideration for approval by the Delhi High Court. The announcement was made before market hours today, 29 April 2016.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 gained 0.5% to 6820.58. South Korea's KOSPI index shed 0.32% to 1994.15. Taiwan's Taiex index sank 1.1% to 8377.90. Malaysia's KLCI shed 0.1% to 1672.724. Indonesia's Jakarta Composite index sank 0.3% to 4835.43. Singapore's Straits Times index fell 0.9% to 2837.90. Japan market closed for public holiday.
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