The U.S. stock market lost ground on Thursday as disappointing results from some of Wall Street's big names such as Best Buy, Goldman Sachs and Citigroup, and railroad CSX had flattened the mood of investors.
Among regional market bourses, key benchmark indices of the Japan's share market finished the session in mixed terrain as fall in exporters and retailers were offset by gains in developers stocks. The benchmark Nikkei225 index fell 12.74 points to 15734.46, while the Topix index of all first-section shares rose 3 points to 1297.39. The Nikkei225 index lost 1.1% for the week, and is now down 3.4% for 2014.
Exporters were weak, with Honda Motors losing 1% to 4,141 yen. Toyota Motor Corp fell 1% to 6,200 yen. Sony Corp sank 1.3% to 1,780 yen. Panasonic Corp shares declined 1.2% to 1342 yen on report the company will sell three chip-production facilities in Southeast Asia to Singapore's United Test and Assembly Center. The move would continue Panasonic's efforts to shed unprofitable units.
Shares of retailers were also lower, with also among session decliners, with Fast Retailing Co down 0.5% to 38630 yen and FamilyMart Co. down 1.2% to 4745 yen.
Shares of realty developers went up as Mitsubishi UFJ Asset Management Co. started a new fund today that counts developers as its biggest holdings. Mitsubishi Estate, Japan's biggest developer by market value, gained 0.7% to 2,944 yen. Mitsui Fudosan, the No. 2, advanced 0.9% to 3,628 yen. Sumitomo Realty & Development rose 1.4% to 4,963 yen.
Fujikura gained 9.7% to 530 yen after Goldman Sachs raised its rating on the stock to buy from neutral, and boosted its target price to 570 yen from 485 yen.
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Japanese government revised up its assessment of the economy for the first time in four months on Friday, as recovery picked up on the back of improvement in household income and business investment. "The Japanese economy is recovering at a moderate pace," the Cabinet Office said in its monthly report. The report noted that the economy may continue to recover as household income and business investment increase. It also noted that exports were in a weak tone recently. However, industrial production is increasing at a moderate pace, according to the Cabinet Office.
Japan's consumer sentiment index fell to seasonally adjusted 41.3 from 42.5 in November. The score was forecast to rise to 43. Consumer confidence deteriorated unexpectedly in December, monthly survey data from the Cabinet Office showed Friday. Among four sub-components, only employment improved from the prior month. The overall livelihood index dropped to 37.8 in December from 39.3 in November. Income growth eased to 39 from 39.6 and willingness to buy durables came in at 40, down from 43.1. Meanwhile, employment rose marginally to 48.2 in December from 48.1 a month ago.
In Australia, Australian stock market finished the session edge below breakeven line today, as losses in consumer discretionary, telecom, realty and financial counters were more than offset by gains in meta & mining, and energy players. The benchmark S&P/ASX 200 index declined 3.20 points, or 0.06%, to 5305.90. The broader All Ordinaries shed 3 points, or 0.06%, to 5316.40.
Consumer discretionary sector was down 2%, worst performer in the ASX sectoral peers, hammered by steep 14.2% fall in Super Retail Group (SUL) shares to A$10.79 after announcing a disappointing sales result. The retailer, which own brands such as Rebel, Supercheap Auto and Ray's Outdoors, said its group sales in the 26 weeks to December 28 rose 6% to A$1.096 billion. It expects to report a net profit after tax of A$61 million to A$62 million for the same corresponding period - an increase of 0.7% to 2.3% from the previous year.
Among other retailers, JB-Hi-Fi shares shed 3.5% to A$20.25, David Jones dropped 2.9% to A$3.06 and Woolworths shed 0.2% to A$34.19.
Shares of Australia's miners rallied, with BHP Billiton up 2.9% to A$37.89 and Rio Tinto up 1.1% to A$66.32. Fortescue Metals added 2.7% to A$5.68.
Woodside Petroleum shares rose 1.3% to A$39.12 after the company has secured an agreement with the government of Canada's British Columbia province for its proposed LNG export venture near Prince Rupert on the Pacific coast. Under the accord, announced overnight Australian time by the government of British Columbia, Woodside has been granted the exclusive right to negotiate a long-term tenure for an LNG export project at a site at Grassy Point.
Paladin Energy shares surged 13.1% to A$0.56 after the uranium miner refinanced a pair of important debt facilities. Paladin said its debt repayments over the next 18 months would fall by $59 million (A$66.91 million), thanks to a refinancing of debt facilities on each of its two operating mines in Africa. The refinancing was done by a collection of South African and Namibian banks. It comes at an important time as Paladin is expected to record another loss in fiscal 2014 unless there is a marked improvement in commodity prices. Under the previous deal, Paladin would have been forced to repay more than $80 million over the next 12 months, and would complete repayments in 2017. Paladin will now pay less in the near term, but extend the time frame for repayments out to 2019.
Commonwealth Bank Business Sales Indicator (BSI) - a measure of economy-wide spending - rose by 0.9% in trend terms in December. This was the 16th consecutive month of spending growth. The more volatile seasonally adjusted estimate of spending rose by 0.4% in December after a 0.2% increase in November and a 4% rise in October - the first consecutive three monthly lift in spending in nine months. Annual growth rose from 9.4% to 10.6% in December.
In China, blue chips of the China's financial market declined, dragging the benchmark Shanghai Composite index provisionally down 18.75 points to 204.95, on nervousness about upcoming IPO debuts after the first company to begin trading in more than a year popped.
The decline in the Mainland China market came amid concern the resumption of IPOs will divert funds and fears of a possible trust product default rose. With more than 700 initial public offering applications in the pipeline and more than 50 approved, investors are worried new listings will divert limited funds from the large caps making up market indexes.
Meanwhile, fears of a possible trust product default flared after the official China Securities Journal reported today that the trust firm responsible for a troubled high-yield investment product sold through China's largest banks has warned investors they may not be repaid when the 3 billion-yuan ($496 million) product matures on January 31, 2014.
Financial stocks finished with losses amid worried about defaults in trust products. Industrial and Commercial Bank of China was down 0.3% to CNY3.42. Bank of China Ltd was down 0.8% to CNY2.48.
Industrial-valve manufacturer Neway Valve (Suzhou) Co. gained 43% to CNY25.43 after it raised 1.46 billion yuan ($241 million) in an IPO. It is the first company to debut since the stock regulator lifted a more than yearlong moratorium on IPOs.
The commerce ministry of China said on Thursday that foreign direct investment in China rose a modest 5.3% last year, bouncing back after declining in 2012 for the first time in three years. Foreign direct investment (FDI), which excludes financial sectors, totaled US$117.59 billion last year. The figure is up from the US$111.72 billion posted in 2012, when it skidded 3.7% in the face of economic weakness in developed markets and a growth slowdown at home. For December alone, FDI increased 3.3% year on year to US$12.08 billion, the ministry said.
FDI from the European Union jumped 18.1% to US$7.2 billion in 2013, while that from the United States rose 7.1% to US$3.35 billion. But the most investment into the Chinese mainland comes from a group of 10 Asian countries and regions including Hong Kong, Taiwan, Japan, Thailand and Singapore. FDI from those economies rose 7.1% to US$102.52 billion.
In Hong Kong, shares of the city's market went up, with the benchmark Hang Seng Index provisionally finishing 0.64% higher from prior day to 23133.35. The city's market recovered after slipping in early trading. Hong Kong stocks dropped at the start of trading as mainland banks were under pressure on shadow banking worries.
Among the HK 50 blue chips, 23 rose and 21 fell, with six stocks remaining steady. Macau gaming players led the rally. Galaxy (00027) jumped 5.3% to HK$83.2, becoming the top blue-chip winner, after its Chairman Lui Che Woo was named by a newswire the richest person in Asia. Lenovo (00992) retreated 4% to HK$10.04, becoming the biggest blue-chip loser.
Mainland banks listed in Hong Kong declined on shadow banking worries. Industrial and Commercial Bank of China dropped 1.2% to HK$4.88 after the world's largest bank by assets reportedly refused to assume main responsibility to bailout investors in a 3 billion yuan ($500 million) investment product that it helped distribute. Bank of China dropped 0.88% to HK$3.39 and Agricultural Bank of China sank 1.15% to HK$3.45.
Shares of China COSCO rose 2.7% to HK$3.46 after the shipping company said it expects to record a profit attributable to equity holders for the year ended 31 December 2013 as compared to the net loss for the previous financial year. Such expected turnaround to profit is primarily due to the effort of China COSCO in increasing its revenue and reducing its operation costs and the revenue generated from the disposal of equity interests and assets in certain companies previously held by the company.
Cinda International shares surged 14.3% to HK$1.12 after the company said its profit for the year ended 31 December 2013 to increase significantly as compared to that for the previous financial year. The significant increase in net profit is mainly due to the improvement of the overall performance of the business operation of the Group and the provision of financial services to China Cinda Asset Management Co (CCAM) in respect of the initial public offering of CCAM.
In India, key benchmark indices finished lower, weighed down by profit taking in banks, technology, telecom and metals stocks. The benchmark BSE index provisionally fell 0.95% to 21063.62.
TCS dropped as the company's third quarter results fell short of market expectations. The stock lost 5.67%. The company's consolidated net profit rose 15.1% to Rs 5333 crore on 1.5% increase in revenue to Rs 21294 crore in Q3 December 2013 over Q2 September 2013.
Shares of private sector banks declined. AXIS Bank extended Thursday's losses as the bank's bad loans rose in Q3 December 2013. HDFC Bank dropped in choppy trade as the private sector bank's net interest margin declined to 4.2% in Q3 December 2013, from 4.3% in Q3 December 2012. Coal India dropped as the stock turned ex-dividend today, 17 January 2014, for dividend of Rs 29 per share for the year ending March 2014.
Hindustan Zinc declined 0.19%. The company's net profit rose 7% to Rs 1723 crore on 9% growth in net sales to Rs 3410 crore in Q3 December 2013 over Q3 December 2012. The company announced the results during market hours.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index fell 0.56%. South Korea's KOSPI sank 0.66%. Indonesia's Jakarta Composite index shed 0.01%. Taiwan's Taiex index sank 0.19%. Malaysia's KLSE Composite lost 0.6%. Singapore's Straits Times index rose 0.22%.
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