Asia Pacific share market closed mixed on Thursday, 17 November 2016, pausing for breath, as the US dollar hovered near 14-year highs and on caution ahead of inflation, jobs and exports data expected from the U.S. and testimony from Federal Reserve Chairwoman Janet Yellen on the economic outlook to Congress later in the day.
Later in the U.S. on Thursday, data on October consumer prices, weekly jobless claims and export sales are due. But the market will be focused on congressional testimony from Ms. Yellen. New York Fed President William Dudley and Fed Board Governor Lael Brainard will also be speaking at public events.
The US dollar hovered near 14-year highs, boosted by rising U.S. bond yields. The ICE Dollar Index, which tracks the greenback against a basket of six currencies, rose to 100.57 earlier in the session, its highest level since April 2003. It was last trading 0.2% down at 100.23.
Among Asian bourses
Australia Stocks end tad higher
Australian share market ended marginally higher, as gains in telecom, utilities, realty, and healthcare stocks were more than offset fall in bullion, energy, and financial players. At the closing bell, the benchmark S&P/ASX 200 index rose 10.80 points, or 0.2%, to 5,338.50, while the broader All Ordinaries index increased 9.30 points, or 0.17%, to 5,408.90.
Telecom sector was biggest gainer of the ASX sectoral group, led by Telstra, rising 2.8% to A$4.84, after the telecommunications giant said it expects a A$1 billion reduction in core fixed costs by fiscal year 2021. The healthcare and utilities sectors also advanced. CSL and Scentre Group were up 1.9% and 1.2% respectively.
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Shares of energy companies declined as global oil prices eased overnight and in early Asian trade. Santos dropped 1.3% to A$3.95, while Woodside Petroleum advanced 0.8% to A$29.27 and Origin Energy added 2.6% to A$5.64.
James Hardie was up 4.5% to A$20.40 despite the building products company posting a 24% fall in half year profit to $US144.1 million.
OFX, the former OZForex, was up 6.5% to A$1.54, making up lost ground from yesterday when the currency transfer group posted a 14% fall in net profit to A$9.66 million for the six months to September.
Nikkei closes flat
The Japan share market closed steady after recovering from an early falls, as a rally fuelled by a weaker yen lost steam. Stocks met with selling to lock in profits at the beginning of Thursday's trading after the 30-issue Dow Jones industrial average snapped its seven session winning streak on Wednesday. In particular, financial issues and export-oriented names took a beating, as investors grew worry after the two sectors led the recent market surge. But the Nikkei average turned higher in midmorning trading, as the dollar retook 109 yen after the Bank of Japan offered to buy Japanese government bonds at designated yields for the first time since it introduced the fixed-rate JGB buying operation in September. In the afternoon, the key market gauge fluctuated around the previous day's closing level, with its downside supported by the dollar's stable moves around 109 yen. The benchmark Nikkei 225 index gained 0.42 point to 17,862.63, the best level since early February, while the broader Topix index of all first-section issues was up 0.1%, or 1.43 points, at 1,423.08.
Domestic demand-oriented issues, such as daily goods maker Kao, Nippon Telegraph and Telephone and railway operator JR East, were buoyant. Other major winners included mobile phone carrier SoftBank Group, airline ANA, game producer Nintendo and oil company Inpex. By contrast, mega-banks Mitsubishi UFJ, Mizuho and Sumitomo Mitsui, insurer Dai-ichi Life and brokerage firm Nomura were downbeat.
China Stocks edge up
Mainland China stock market closed edge higher, snapping a two-session losing streak, as gains for big-cap infrastructure stocks offset a weak resources sector. But gains were capped on concerns over strength in the U.S. dollar and worries over capital outflows. The benchmark Shanghai Composite Index added 0.1% to close at 3,208.45 points. The CSI 300 index closed 0.2% higher at 3,436.54 points.
A strong US dollar and worries over capital outflows also curbed investor appetites. With the dollar index still hovering near a 13-1/2 year high against a basket of currencies, there are persistent fears of yuan depreciation, as global investors continue to bet US President-elect Donald Trump's policies will result in higher inflation and stronger US economic growth.
Shares in infrastructure companies and those related to the Belt and Road initiative picked up. Metallurgical Corp of China jumped the daily cap of 10%, and Power Construction Corp of China was up more than 4%.
Gree Electric Appliances, China's largest air conditioner manufacturer, gained 2% after the company scrapped plans to acquire a lithium battery producer.
Hong Kong Stocks close lower
The Hong Kong stock market closed a shade down, as stocks met with selling after the 30-issue Dow Jones industrial average snapped its seven session winning streak on Wednesday. The Hang Seng Index ended down 0.08%, or 17.65 points, to 22,262.88 and the Hang Seng China Enterprises index lost 0.38%, or 36 points, to 9,326.54. Turnover increased slightly to HK$62.3 billion from HK$65.9 billion on Wednesday.
Macau gaming counters rose. Galaxy Entertainment (00027) and Sands China (01928) surged 4.3% and 5.2% to HK$34.95 and HK$36.35. Melco International (00200) rose 2.6% to HK$11.08. S&P Global Ratings yesterday forecast Macau's gaming revenue will be flat to 10% higher in 2017.
Shipping counters were higher as Baltic Dry Index (BDI) jumped again. Pacific Basin Shipping (02343) surged 3.9% to HK$1.35. China Shipping Container Lines (02866) jumped 4% to HK$1.77. China COSCO Holdings (01919) soared 6.5% to HK$3.12. Singamas Container (00716) shot up 6.8% to HK$0.94.
Tencent (00700) slipped 1% to HK$194.8 after the internet giant reported its 9-month earnings growth of 41%, with 3Q's growth of 43%. Research houses were mixed on its report.
Sensex slides over 4% in four sessions
Telecom, IT sector stocks and index heavyweight HDFC Bank led small losses for key benchmark indices in a volatile trading session. The barometer index, the S&P BSE Sensex, fell 71.07 points or 0.27% to settle at 26,227.62. The Nifty 50 index fell 31.65 points or 0.39% to settle at 8,079.95.
Bharti Airtel fell 4.26% to Rs 296.35. The company announced the completion of the merger of its subsidiary Airtel Bangladesh with Robi Axiata, a unit ofAxiata Group Berhad. The merger was completed following the fulfilment of the condition precedents to the agreement and filing of the merger order with the registrar of joint stock companies and firms of Bangladesh Court. Post the merger, Axiata will hold 68.7% stake in the combined entity, while Airtel will hold 25%. The remaining 6.3% stake will be held by NTT DoCoMo.
Reliance Communications (RCom) fell 0.26% to Rs 38.40. RCom, through its wholly-owned subsidiary Reliance Globalcom Services Inc, acquired a newly incorporated company named Onyx NewCo LLC (ONL), a Delaware Registered Company, on 15 November 2016. Delaware is a state located in the United States. ONL will be a telecommunications company, which is yet to commence its business operations.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.6% to 6856.18. Indonesia's Jakarta Composite index rose 0.15% to 5193. Taiwan's Taiex added 0.4% to 8995.26. South Korea's KOSPI index declined 0.5% to 1970.74. Malaysia's KLCI was down 0.1% to 1626.77. Singapore's Straits Times index rose 0.7% to 2813.48.
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