Asia Pacific share market declined on Tuesday, 02 February 2016, as risk sentiments weakened on following renewed selling in crude oil and the softer close of the Dow overnight.
Crude oil prices fell for a second session on Tuesday, as weak economic data from China cemented concerns of a slowdown and as hopes of an output cut by Oil Producing and Exporting Nations faded. U.S. benchmark crude fell 6% Monday, while Brent crude declined 1.5%. The Brent crude contract was last down 1.75% at $33.64 per barrel.
Data released on Monday showed China's manufacturing activity fell at the fastest pace in nearly three-and-a-half years, with the official Purchasing Managers' Index (PMI) coming in at 49.4 in January. The private Caixin/Markit manufacturing came in at 48.4 in January, the eleventh consecutive month of decline in factory activity.
Among Asian bourses
Australia Market snaps three days rally
Australian share market declined for the first time in four sessions in row, as risk sentiments weakened following soft overnight leads after weak Chinese manufacturing data and plunge in crude oil prices and as the Reserve Bank of Australia's left interest rate on hold today. All ten sectors closed the day higher, led by healthcare, industrial, and consumer discretionary stocks. At the close, the benchmark S&P/ASX 200 index rose 38.10 points, or 0.76%, to 5043.60 points, while the broader All Ordinaries index added 37.70 points, or 0.75%, to 5094.30 points.
More From This Section
Shares of banks and financials were down after RBA left rates on hold, with Westpac Banking Corp down 1.1% to A$30.30, Commonwealth Bank down 0.3% to A$78.02, and ANZ Banking Group down 0.8% to A$24.40, while National Australia Bank rose 0.3% to A$27.91.
Shares of energy-linked companies suffered the heaviest losses after crude oil prices returned to gloom overnight on talks deal between OPEC and Russia to cut production was unlikely to turn into action. The US Nymex crude slumped 5.9% to $31.46 a barrel, while global benchmark Brent crude shed 4.9% to $34.24. Woodside Petroleum declined 3.3% to A$27, Santos 4.3% to A$2.92, and Oil Search 2.8% to A$6.37.
Shares of materials and resources fell further today after weaker than expected manufacturing data from China. The official Purchasing Managers' Index (PMI) stood at 49.4 in January, compared with the previous month's reading of 49.7 and below the 50-point mark that separates growth from contraction on a monthly basis. It is the weakest index reading since August 2012. Global miner BHP Billiton dropped 2.2% to A$14.92 after Standard & Poor's lowered BHP Billiton's credit rating. Rio Tinto shed 3.7% to A$37.54. Fortescue Metals melted dropped 5.1% to A$1.59.
Consumer discretionary stocks dipped as media firms struggled. Nine Entertainment lost 6.2% to A$1.52, Ten Network was down 6.5% to A$1.075 while Seven West Media slumped 5.3% to A$0.805. Fairfax Media ticked up 0.6% to A$0.90, while News Corp lost 3.3% to A$18.30.
New Zealand shares rise
Equities on the New Zealand share market rose, led by Fletcher Building after the country's biggest construction company bought a roading firm. Summerset Group gained while Mighty River Power and Nuplex Industries dropped. By the provisional closing, the S&P/NZX 50 Index rose 5.6 points, or 0.1%, to 6180.09. Within the index, 25 stocks fell, 20 rose and five were unchanged. Turnover was NZ$151 million.
Ryman Healthcare gained 1.3% to NZ$7.99, partly offsetting yesterday's fall of 1.9%, with the stock down 7.2% for the year. The retirement village operator will spend NZ$200 million building its site in Melbourne as part of its planned expansion in Australia's second-biggest city, it said yesterday.
Nikkei falls 0.64%
Japan share market ended down, halting a two-day rally, as investor sentiment was dampened by soft overnight leads after weak Chinese manufacturing data, plunge in crude oil prices, and the yen's rise against the US dollar. Most of the Topix industry groups declined, with notable decliners comprised mining, iron and steel, and oil and coal product-related shares. The 225-issue Nikkei Stock Average ended down 114.55 points, or 0.64%, at 17750.68. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 10.63 points, or 0.73%, lower at 1,452.04. The benchmark indices rallied more than 5% over the previous two days after the Bank of Japan boosted stimulus.
Shares of export-oriented issues, including automakers and electronics manufacturers declined after yen appreciated to the mid-120 yen range against the dollar, with Mazda Motor plunging 4.4% to 2,139.50 yen, while Sony Corp dropped 5.1% to 2693 yen, Canon Inc lost 0.5% to 3372 yen and Panasonic Corp fell 1.1% to 1127 yen.
Shares of resource-related companies declined after crude oil prices returned to gloom overnight on talks deal between OPEC and Russia to cut production was unlikely to turn into action. Inpex plunged 4.9% to 1000.50 yen while JX Holdings dived 3.5% to 442.50 yen and Cosmo Energy Holdings plummeted 5.2% to 1268 yen.
Hitachi Zosen dropped 4.2% to 588 yen after the shipbuilder reported Monday a 5.9 billion yen net loss for the nine months through December, citing the slowdown in China.
Mitsubishi UFJ Financial Group Inc. closed 2.1% down at 578 yen after reporting third-quarter profit fell 27%.
China Market rebounds on liquidity injection
Mainland China stock market surged on easing fears of liquidity squeeze before weeklong Lunar New Year holiday after the country's central bank injected more liquidity into the financial system. The gains recouped Monday's losses, incurred after weaker than expected official surveys of China's manufacturing and services PMI data. All SSE sectors declined, with energy, industrial, material, and financial issues being major losers. The Shanghai Composite Index ended up 2.26%, or 60.72 points, at 2749.57. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 60.28 points, or 2.08%, to 2961.33.
China's central bank continued to pump money into the financial system on Tuesday through open market operations to offset a pre-holiday cash crunch. The People's Bank of China (PBOC) conducted 100 billion yuan of reverse repurchase agreements (repo), in which central banks purchase securities from banks with agreements to resell them in the future.The operations include a 14-day reverse repo priced to yield 2.4% and a 28-day reverse repo with a yield of 2.6%, each worth 50 billion yuan respectively, according to a PBOC statement. The move followed a reverse repo of 10 billion yuan on Monday and a net injection of 690 billion yuan through such operations last week. The PBOC also used other tools, including standing lending facilities, medium-term lending facilities and pledged supplementary lending, to offer more than 1.5 trillion yuan for the market in January. The money injection was aimed at easing a liquidity strain usually expected before the Chinese New Year, which will fall on Feb. 8 this time.
Shares of technology and industrial companies gained the most among 10 SSE industrial groups. Neusoft Corp. soared 9.1%. Hundsun Technologies Inc. and East Money Information Co. added more than 4%, while China First Heavy Industries Co. and CITIC Heavy Industries Co. climbed nearly 4.5%.
Hong Kong Market falls 0.76%
The Hong Kong stock market declined on Tuesday, 02 February 2016, on reduced risk appetite following renewed selling in crude oil and slides in global stocks. The Hang Seng Index (HSI) opened down 120 points at 19,474. It dipped as much as 192 points at one stage. The benchmark Hang Seng Index has lost 148.66 points, or 0.76%, to 19446.84 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 86.02 points, or 1.06%, to 8053.83 points. Turnover was little changed at HK$69.6 billion compared to HK$69.5 billion on Monday.
Shares MTRC (00066) added 0.9% to HK$35.4 after its shareholders approved the Express Rail Link project, and the special dividend agreement. Lenovo (00992) jumped 3.7% to HK$7.36 ahead of its earnings report on Wednesday.
Great Wall Motor (02333) shot up 3.5% to HK$5.7 as Macquarie Research reaffirmed the stock as its top pick in the sector. Other auto makers were also boosted. Brilliance China (01114) gained 3.2% to HK$7.1. Geely Auto (00175) nudged up 0.3% to HK$3.06.
MSCI said it will remove 18 stocks, deemed as high shareholding concentration by the SFC, from its Global Investable Market Indexes (GIMI) at its quarterly review on 11 February. Imperial Pacific (01076) plunged 7.4% to HK$0.151. Goldin Properties (00283) sank 5.4% to HK$4.63. Bloomage BioTechnology (00963) declined 4.5% to HK$16.76.
Sensex falls for the second day in a row
Indian stock market ended lower, with shares of metal and mining companies, oil sector firms and public sector companies led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, lost 285.83 points or 1.15% to settle at 24,539. The Nifty dropped 100.40 points or 1.33% to settle at 7,455.55. After seeing high volatility in mid-morning trade in the aftermath of the Reserve Bank of India's (RBI) decision to keep its benchmark interest rate unchanged after a monetary policy review, the Sensex and the Nifty moved decisively lower later on weakness in European stocks and losses for US index futures, with the two key benchmark indices extending losses in late trade.
Shares of oil exploration and production (E&P) companies declined on sharp drop in crude oil price. Bank stocks edged lower after the RBI kept the repo rate and the cash reserve ratio (CRR) unchanged after the latest policy review. Tech Mahindra dropped after announcing Q3 results. Lupin moved higher after the company's US subsidiary announced the launch of a generic drug in the US.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.3% to 8131.24. South Korea's KOPSI dropped 0.95% to 190.60. Malaysia's KLCI declined 0.9% to 1653.18. Singapore's Straits Times index fell 0.9% at 2579.23. Indonesia's Jakarta Composite index dropped 0.8% to 4587.44.
Powered by Capital Market - Live News