The Caixin China general manufacturing purchasing managers' index fell to 49.4 in April 2016 from 49.7 in March 2016. A reading below 50 indicates economic contraction. The data was released during trading hours in Asia yesterday, 3 May 2016. China's official manufacturing PMI, a competing gauge, came in at 50.1 in April 2016 compared with 50.2 in March 2016, according to data released by the National Bureau of Statistics on 1 May 2016. The Chinese economy is the world's second biggest economy after the United States.
A surprise interest-rate cut by Australia's central bank has added to global economic jitters. The Reserve Bank of Australia yesterday, 3 May 2016, cut its benchmark interest rate by 25 basis points to record low of 1.75% in a bid to combat record-low inflation and a strong local currency. The decision was announced during trading hours in Asia.
Among Asian bourses
Australia Market tumbles after unexpectedly low inflation data
Australian share market ended down, giving back most of yesterday's gains on tracking steep losses on the Wall Street overnight and unexpectedly low Australian inflation data. Selloff pressure intensified on doubt over growth sustainability in the world second largest economy after moderation in China's manufacturing activities. Most of ASX industry group advanced with shares in the metal & mining, energy, and consumer goods being major losers. At close of trade, the benchmark S&P/ASX 200 declined 82.70 points, or 1.54%, to 5271.10. The broader All Ordinaries sank 79.40 points, or 1.47%, to 5335.60.
Quarterly central bank data put the inflation rate in March - after stripping out volatile items - at 1.7%, down from 2.1% in December, while the Melbourne Institute's own gauge of inflation on Monday suggested price growth had eased to 1.5% in April from 1.7%.
More From This Section
Shares of metal mining companies were the biggest loser of the sectors of the ASX today, with BHP Billiton leading losses, down 9.4% to A$18.79 after the company told the market it is facing a massive compensation case over the Samarco mine disaster in Brazil. The company said federal prosecutors are seeking about A$57 billion in compensation. BHP spinoff South 32 also saw big losses, diving 10% to A$1.54. Rio Tinto had a bad day as well, losing 7.5% to A$47.85.
Energy stocks were also lower after crude oil pulled back last night. Benchmark U.S. crude oil lost 46 cents to trade at $44.32 a barrel in electronic trading on the New York Mercantile Exchange, while Brent, the international standard, fell 24 cents to $45.59 a barrel. Shares of Santos finished down 8.7% to A$4.20, Woodside Petroleum 5.3% to A$27.10, and Origin Energy 4.3% to A$5.08.
China Market ends softer
Mainland China stock market ended tad lower, as risk sentiments subdued on worries over the state of the domestic economy after weak manufacturing survey data. Most of the SSE sectors declined, with shares of materials and energy players being major losers. The benchmark Shanghai Composite Index declined 1.37 points, or 0.05%, to 2991.27. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, de-grew 4.08 points, or 0.13%, to 3209.46.
Shares of resource and energy companies declined on tracking tumbling oil prices combined with resurfacing global growth concerns. China Petroleum & Chemical Corp. and PetroChina Co. paced losses for energy companies.
The Chinese yuan deprecated against the dollar on Wednesday, after the People's Bank of China set the yuan fixing against the U.S. dollar at 6.4943 on Wednesday, down sharply by 0.59% over Tuesday, its biggest one-day drop since the one-off 1.86% devaluation move on August 11 last year. Wednesday's weaker fixing was largely due to the dollar index's 0.51% gain overnight
Hong Kong Market falls 0.73%
The Hong Kong stock market finished the session lower, following the weaker tone of overseas markets, weighed by poor economic data from both China and Europe. The benchmark Hang Seng Index dropped 151.11 points, or 0.73%, to 20525.83 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 51.33 points, or 0.59%, to 8697.37 points. Turnover reduced to HK$61.44 billion from HK$77.5 billion on Tuesday.
Shares of energy companies tanked after crude oil prices fell for the second consecutive trading day as crude output keeps rising. Benchmark U.S. crude oil lost 46 cents to trade at $44.32 a barrel in electronic trading on the New York Mercantile Exchange, while Brent, the international standard, fell 24 cents to $45.59 a barrel. CNOOC (00883) slid 3.3% to HK$9.12. PetroChina (00857) fell 1% to HK$5.57. Sinopec (00386) slipped 2.6% to HK$5.25.
CICC Research said the opening of Shanghai Disney theme park will benefit Chinese airlines the most. It expects full-year tourist visitations to reach 15 million. China East Air (00670) put on 7% to HK$4.49. Air China (00753) added 4% to HK$5.74. China South Air (01055) gained 5.8% to HK$5.08.
Senses falls on weak global lead
Indian stock market declined after data showing slowdown in growth in the services sector and weakness in global stocks. The barometer index, the S&P BSE Sensex, fell 127.97 points or 0.51% to settle at 25,101.73. The Nifty 50 index fell 40.45 points or 0.52% to settle at 7,706.55.
Metal and mining stocks edged lower in the wake of weaker-than-expected Chinese manufacturing data for April 2016. Shares of oil exploration and production (E&P) firms declined on lower crude oil prices. Index heavyweight and cigarette major ITC edged lower on reports that the Supreme Court today, 4 May 2016, told the tobacco industry to adhere to rules requiring stringent health warnings on cigarette packs. Index heavyweight and housing finance major HDFC edged higher, with the stock extending post-result gains. Yes Bank dropped after the private sector bank announced reduction in lending rate by 10 basis points across tenors.
Adani Ports and Special Economic Zone (APSEZ) fell 11.98% in a single trading session on equity dilution worries after the company's board of directors decided to seek shareholders' approval to raise funds by way of issue of equity shares/convertible bonds up to Rs 10000 crore. Tata Motors tumbled after the company revised downward the rate of growth in sales volume for April 2016 from the figures announced previously.
Meanwhile, the outcome of a monthly survey showed that growth in India's services sector eased last month due to a slower expansion in new business inflows. The seasonally adjusted Nikkei Services Business Activity Index dropped to 53.7 in April 2016 from 54.3 in March 2016. April data highlighted a general lack of pressure on the capacity of Indian service providers, as unfinished business declined. Services firms' sentiment weakened slightly in April, with the degree of optimism being modest by historical standards.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 was down 0.3% to 6824.50. South Korea's KOSPI index fell 0.5% to 1976.71. Taiwan's Taiex index slid 1.3% to 8185.47. Malaysia's KLCI gained 0.4% to 1657.58. Indonesia's Jakarta Composite index added 0.2% to 4822.6. Singapore's Straits Times index shed 1.4% to 2773.07. Japan's stock market was closed in observance of public holiday.
Powered by Capital Market - Live News