Asia Pacific closed mixed in thin trade on Monday, 04 April 2016, with investors maintained bets on the U.S. monetary policy outlook remaining unchanged despite the release of firm jobs data before the weekend.
On Friday, the U.S. March nonfarm payrolls data showed an increase of 215,000 jobs, topping expectations, while the Institute for Supply Management's factory purchasing managers index showed that the U.S. manufacturing sector expanded in March for the first time since August 2015. The data showed the increasing resilience of the U.S. economy, easing concerns about a potential recession.
Crude oil extended declines this morning after Saudi Arabia cast doubt on hopes of an agreement between OPEC and non-OPEC countries on a production freeze. The county's deputy crown prince said the kingdom will only freeze production if Iran and others follow suit as Russia's oil output set a post-Soviet high in March. Futures declined as much as 1.6 per cent after a 4 per cent drop on Friday. WTI for May delivery dropped as much as 57 cents to $US36.22 a barrel, after falling $US1.55 to $US36.79 on Friday. Brent for June settlement lost as much as 1.1 per cent to $US38.25 a barrel.
Among Asian bourses
Australia Market ends softer
Australian share market ended marginally lower, as losses in the major miners were more than offset by big banks. At close of trade, the benchmark S&P/ASX 200 dropped 4.10 points, or 0.08%, to 4995.30. The broader All Ordinaries lost 3.70 points, or 0.07%, to 5070.10.
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Shares banks and financials closed steady ahead of the Reserve Bank's call on interest rates.. National Australia Bank was up 0.6% to A$25.82, while Commonwealth Bank fell 0.1% to A$72.92. Westpac rose 0.2% to A$29.71. ANZ was steady at A$22.81.
Shares of energy companies declined after crude oil is extended declines this morning after Saudi Arabia cast doubt on hopes of an agreement between OPEC and non-OPEC countries on a production freeze. Oil & gas explorer Oil Search lost 2.6% to A$6.35, Santos 4.3% to A$3.75, Origin Energy 5.5% to A$4.63, and Woodside Petroleum 2.7% to A$24.98. mining giant BHP Billiton lost 2.7% to A$16.52, while Rio Tinto shed 0.7% to A$42.82, while Fortescue Metals rose 1.2% to A$2.59.
Figures released by the Australian Bureau of Statistics on Monday showed retail sales were flat in February. But building approvals rose a solid 3.1 per cent in the same period, rebounding from the previous month's 7.5 per cent decline.
March ANZ job ads rose 0.2 per cent, following February's 1.2 per cent decline.
March consumer prices fell 0.2 per cent, after falling 0.2 per cent in February, according to the Melbourne Institute monthly gauge.
Nikkei ends near 1-month low
Japan share market ended mixed, as boost from the better-than-expected U.S. jobs data last week offset by a stronger yen. Major gainers included fishery, agriculture and forestry as well as food issues, while transportation equipment and rubber product issues led decliners. The 225-issue Nikkei Stock Average ended down 40.89 points, or 0.25 percent, from Friday at 16,123.27, a roughly one-month closing low. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 1.31 points, or 0.10 percent, higher at 1,302.71.
Data from Bank of Japan (BOJ) showed that its decision to adopt negative interest rates in late January has not convinced Japanese companies that inflation in the country will take off.
Major Japanese exporters were lower, with shares of Toyota closing down 2.53 percent, Nissan off 2.78 percent and Honda lower by 1.1 percent. A stronger yen is a negative for exporters as it affects their overseas profits when converted into local currency.
Weak department store sales for March, released Friday, led J. Front Retailing to decline 4.4 percent and Takashimaya to shed 3.2 percent.
Sharp climbed 4 percent after the struggling electronics company signed a deal Saturday for a takeover by Taiwan's Hon Hai Precision Industry Co.
Toray Industries rose 0.9 percent after reports that the largest synthetic fibres manufacturer is likely to have logged a record-high operating profit for the year ended last month, helped by brisk business in China.
Indian indices settle near 3-month high
Telecom stocks and index heavyweight Infosys led upmove for key benchmark indices a day ahead of the Reserve Bank of India's (RBI) monetary policy review. The barometer index, the S&P BSE Sensex, rose 130.01 points or 0.51% to settle at 25,399.65. he Nifty rose 45.75 points or 0.59% to settle at 7,758.80.
Telecom stocks edged higher after media reports suggested that the government has cut spectrum usage charges (SUC) from 5% of adjusted gross revenues (AGR) to 3%. Aviation stocks edged higher on lower crude oil prices. Mahindra & Mahindra (M&M) surged after the company announced the launch of its new sport utility vehicle (SUV) NuvoSport. Bajaj Auto moved higher after the company announced strong growth in sales volumes for the month just gone by.
Index heavyweight and cigarette major ITC edged lower after the company announced that it has closed manufacturing operations at all its cigarette factories in India with effect from 1 April 2016 until clarity emerges on the quantum of mandatory pictorial health warning on cigarette packages.
Shares of HCL Technologies edged higher after the company announced an agreement to acquire (through demerger) all of the business of Geometric, except the 58% stake that Geometric owns in a joint venture with Dassault Systemes. Shares of Geometric spurted a staggering 19.39%. MphasiS edged lower after US investment firm Blackstone Group announced an open offer for acquiring 26% stake in MphasiS at a discount to the stock's closing price on Friday, 1 April 2016.
Yes Bank edged higher after the private sector bank announced raising Rs 545 crore from Basel III compliant Tier II bonds on private placement basis. Kotak Mahindra Bank (KMBL) nudged higher after the private sector bank announced lending rates based on marginal cost of funds.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.5% to 6743.60. South Korea's KOPSI added 0.3% to 1979. Malaysia's KLCI rose 0.9% to 1725.24. Singapore's Straits Times index rose 0.6% to 2835.35. Indonesia's Jakarta Composite index gained 0.1% to 4850.18. Markets in mainland China, Hong Kong and Taiwan are shut for holidays
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