Asia Pacific share market ended mixed on Wednesday, 28 September 2016, as drop in crude oil prices offset positivity from gain in Wall Street overnight and stronger performance from Democratic candidate Hillary Clinton against Republican hopeful Donald Trump at the first U.S. presidential debate.
Equities in Asia had gained ground on a perceived win by Democrat Hillary Clinton at the first presidential debate over Republican Donald Trump, who is seen as creating greater uncertainty for the US and global economies.
U.S. stocks rebounded overnight after a Conference Board survey showed consumer confidence is at a nine-year high, a sign Americans will keep spending in the months to come. The Dow Jones industrial average jumped 133.47 points, or 0.7%, to 18,228.30. The Standard & Poor's 500 index picked up 13.83 points, or 0.6%, to 2,159.93. The Nasdaq composite gained 48.22 points, or 0.9%, to 5,305.71.
Oil prices slipped during U.S. hours on Tuesday, after major oil producers Saudi Arabia and Iran left little hope that producers would reach a deal to tackle the global supply glut during an informal meeting on the sidelines of an energy conference in Algeria. U.S. crude futures were modestly up 0.16% at $44.74 on Wednesday, after dropping 2.7% in the U.S. session on Tuesday. Global benchmark Brent was up 0.28% at $46.10, after falling 2.9% overnight.
The near-term market focus was on comments European Central Bank President Mario Draghi and Federal Reserve Chair Janet Yellen. Draghi will face tough questions from German lawmakers later on Wednesday about the central bank's monetary policy, while Yellen will deliver semi-annual testimony before the US House Financial Services Committee.
Among Asian markets
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Australia Stocks hold gains
Australian share market finished almost flat after trimming early gains, as strength in utilities and consumer staples issues were offset losses in energy and resources counters. At close of trade, the benchmark S&P/ASX 200 index rose 6.50 points, or 0.12%, to 5,412.40, while the broader All Ordinaries index was up 6.50 points, or 0.12%, to 5,500.20.
Utilities did most of the heavy lifting in the benchmark bourse, buoyed by AGL (up 5.8%) which surprised investors with a $600 million buyback and flagged a rise in underlying profit.
Three of the big four banks traded higher, with Commonwealth Bank of Australia closing up 0.3% higher, ANZ up 0.7% higher and National Australia managing to close up 0.1%. Westpac, however, saw a slight selloff and closed down 0.1%.
A sliding oil price weighed on energy stocks which dragged the bourse down. Australia's largest oil producer Woodside Petroleum closed down 0.7%, Santos was down 3.1% and Origin Energy 3.7%. Lower iron ore and oil prices weighed on the big miners, with BHP Billiton and Rio Tinto finishing down 0.5% and 0.02% respectively. Iron ore producer Fortescue managed to close 0.8% higher.
Japan Market falls on ex-dividend impact, stronger yen
The Japan share market declined the most in two-and-a-half weeks, as more than half the companies on the benchmark traded without the right to the next dividend, a biannual event in Japan. Total 30 out of 33 TSE industry group declined, with Securities & Commodities Futures, mining, Banks, Financial Business, Marine Transportation, and Oil & Coal Products issues being major losers. The 225-issue Nikkei Stock Average ended lower 218.53 points, or 1.31%, at 16,465.40. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 18.45 points, or 1.37%, lower at 1,330.77.
Shares of financial and major export-oriented issues suffered heavy losses, due to concern over consecutive drops of 10-year Japanese government bond yields and the yen's strengthening trend. Mega-bank groups Mitsubishi UFJ, Sumitomo Mitsui and Mizuho posted hefty losses, as well as brokerage firm Nomura and insurers Dai-ichi Life and Tokio Marine. Automakers Toyota and Nissan and electronics maker Sony were downbeat due to the yen's strength.
By contrast, furniture retailer Nitori Holdings surged 2.17%, rising for the fifth straight session, after its midterm group operating profit turned out better than market expectations, brokers said. Also on the plus side were trading house Mitsubishi, industrial robot maker Fanuc and Japan Tobacco.
China Stocks soft ahead of long holiday
Mainland China stock market ended softer in thin trading, as investors' risk appetite continued to wane ahead of the week-long National Day holiday that starts on Oct 1. Reflecting lower risk apatite, trading turnover in Shanghai has shrunk, while outstanding margin financing hit its lowest in 1-1/2 months. The CSI300 index of the largest listed companies in Shanghai and Shenzhen erased 0.3%, to 3,230.89 points, while the Shanghai Composite Index dropped 0.34% to 2987.86 points.
Most sectors lost ground but property shares were strong, as investors bet developers will benefit from the recent surge in home prices in major cities despite fresh curbs by local governments. China's eastern city Hangzhou will scrap a stimulus housing policy and raise the downpayment ratio for second-home purchases, state media reported on Tuesday, in the country's latest move to deflate fast-rising home prices.
Industrial profits rise most in 3 yrs: PROFITS in China's industrial sector in August rose at the fastest pace in three years, supporting a growing view that the world's second-biggest economy is stabilizing. Profits of industrial firms jumped 19.5% from a year earlier to 534.8 billion yuan (US$80 billion), the National Bureau of Statistics (NBS) said yesterday, the most since August 2013. The statistics bureau said that steel, oil refining and auto industries were the driving forces behind the jump in profits. The data covers firms with annual revenues of more than 20 million yuan.
Hong Kong Market recovers ground
The Hong Kong stock market recovered earlier lost ground to close slightly higher, with gambling companies and a supplier to Apple Inc. leading the advance. The Hang Seng Index ended up 0.2% or 47.75 points to 23,619.65 after falling as much as 0.9%, while the Hang Seng China Enterprises index dropped 0.27% or 26.72 points to 9,719.84. Turnover decreased to HK$61.6 billion from HK$64.7 billion on Tuesday.
The Hang Seng Index headed for a 2.8% advance this month, buoyed by mainland inflows via an exchange link with Shanghai and as traders scaled back bets for higher U.S. borrowing costs. A net 58.7 billion yuan ($8.8 billion) has flowed into Hong Kong equities through the connect this month, compared with 1.75 billion yuan in the other direction. That's driven a valuation gap between dual-listed shares in Hong Kong and Chinese exchanges to near the narrowest since 2014.
Macau gaming regulator plans to tighten the entry threshold for junket operators. The industry generally welcomes the move. Galaxy Entertainment (00027) added 1.4% to HK$29.3. It was the top blue-chip winner. Sands China (01928) also gained 0.8% to HK$33.55. Macau Legend (01680) soared 17.3% to HK$1.63.
Mainland developers were volatile after Hangzhou government suspended the purchase of households today. COLI (00688) and CR Land (01109) edged up 0.4% and 0.2% to HK$27.1 and HK422.85. Both stocks had earlier plunged 3% and 4% respectively.
Indian shares snap three-day losses on value buying
Indian shares rose for the first time in four sessions, as bargain buying in banking and auto stocks helped stave off losses stemming from weak risk appetite. The benchmark BSE Sensex rose 0.2% to 28,292.81 points, while the broader NSE Nifty50 index advanced 0.5% to 8,745.15 points. Private bank stocks saw mixed trend. PSU bank stocks rose. Auto stocks gained. Metal & mining stocks gained as copper prices rose in global commodity markets. Realty stocks rose.
Jindal Stainless rose 8.89% after the company said it received approval from Orissa Industrial and Infrastructure Development Corporation (IDCO) vide its letter dated 24 September 2016 conveying its no objection for effecting the transfer or right to use of the land on which the hot strip mill and the coke plant of the company are located, to Jindal United Steel (JUSL) and Jindal Coke (JCL), respectively.
Bharti Airtel rose 2.42% after the company announced the launch of its new International Roaming (IR) packs that redefine the value proposition for customers traveling abroad. With the new IR packs, customers will have the convenience of carrying their India mobile number wherever they go and stay connected 24x7 without having to worry about high call and data charges.
Motherson Sumi Systems rose 0.76% after the Reserve Bank of India allowed foreign investors to hike their stake in the company to upto 30% from 24% earlier
Elsewhere in the Asia Pacific region: New Zealand's NZX50 rose 0.3% to 7314.92. South Korea's KOSPI index shed 0.5% to 2053. Singapore's Straits Times index shed 0.1% to 2858.01. Indonesia's Jakarta Composite index rose 0.1% to 5425.34. Malaysia's KLCI was flat at 1665. Taiwan's market closed for holiday.
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