Asia Pacific shares finished weaker, with the MSCI Asia Pacific Index dropping 0.5 percent to 130.87 on Wednesday, August 21, 2013, amid risk-off sentiment ahead of the release of the FOMC July meeting minutes later today.
Investors across the region retreated on the sideline for details of discussions at the Federal Reserve's Federal Open Market Committee's July meeting minutes for clues to gauge the timing of the pullback of the central bank's bond-buying. Improvement in the U.S. economy has raised expectations the Fed will begin reducing its monetary stimulus next month. For the moment, markets are expecting Fed to taper to $85b per month quantitative easing program in September but that would likely be by a small step of $10b reduction.
Among the regional market, Tokyo stocks finished mixed in volatile but choppy trading, with Nikkei Stock Average ending the day 27.95 points higher at 13,424.33, but the Topix index of all first-section shares fell 3.53 points to 1,121.74.
The benchmark Nikkei index opened higher after a broadly positive lead from Wall Street fuelled by some solid retail earnings reports. But the benchmark index lost initial momentum and moved between gain loss lines throughout the day amid lingering concerns over the US Federal Reserve's scaling back of stimulus scheme possible from September and its impacts on the emerging markets. The Nikkei, however, managed ending in positive territory as the yen reversed early gains against the dollar.
Tokyo Electron rose 3.8% to 4,240 yen on reports that the firm's second-quarter semiconductor manufacturing equipment orders are expected to rise by 7% on quarter.
Kintetsu fell 6.4% to 396 yen after the company's announced plans to raise as much as 78 billion yen through equity financing in September, resulting in a share increase of about 10%.
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Japan Tobacco Inc gained 0.3% to 3365 yen on reports the company will lift its dividend payouts and look for large acquisitions.
Australian stock market finished modest higher with rise in financial, industrials and bullion heavyweights were more than offset by losses in mining sector, particularly from mining heavyweight BHP Billiton. The benchmark S&P/ASX200 index was up 21.80 points at 5,100 points. The broader All Ordinaries index rose 21.50 points to 5,090.30 points.
BHP Billiton was down 2.19% to A$35.74 after announcing 30% drop in net profit to US$10.88 billion in the fiscal year ended June due to continued slump in commodity prices, which more than offset its efforts to trim costs. Separately, BHP plans to invest US$2.6 billion over several years related to work on its Jansen potash project in Canada.
Shares of Woodside Petroleum dropped 1.55% to A$38.10 after the oil company reduced its projection for full-year output. First-half net profit at Woodside rose 7.5% to US$873 million, and included a US$21 million gain on the sale of the company's stake in the Mutineer-Exeter oil project offshore Western Australia state. Underlying profit after stripping out one-off gains from asset sales fell by 1.5% to US$852 million.
Chinese stock market finished Wednesday's trading session edge higher after swinging between gain and loss line throughout the day, with gains in technology, energy and materials shares offset losses among financials. The Shanghai Composite Index rose slight 0.37 point, or 0.02%, to 2072.96. The benchmark index moved in the range of 2056.91-2076.328 points.
Yanzhou Coal Mining Co jumped 2.6 percent to 10.70 yuan, after announcing plans to cut about 400 jobs at its two Australian units to save costs amid weak coal prices.
China Oilfield advanced 3.4 percent to 17.56 yuan after CFO Li Feilong said the company doesn't have financing problems and crude prices can support the deep-water drilling expansion.
Everbright Securities declined 5.9% to 10.27 yuan, extending yesterday's 10% declines amid concerns the broker possible face more restrictions on business after an unprecedented stock trading error that threatens to erode confidence in China's market. The China Securities Regulatory Commission banned the state-controlled brokerage from proprietary trading for three months after 23.4 billion yuan of erroneous buy orders on Aug. 16. Everbright also said yesterday it mispriced 10 million yuan of government bonds.
Hong Kong's shares have finished weaker for fifth consecutive day amid risk-off sentiment ahead of the release of the FOMC July meeting minutes later today. The Hang Seng Index ended down 152 points to 21,817. The benchmark index moved between the range of 21618.60- 21970.25 during the day. Full-day turnover totaled HK$55.12 billion, down from HK$63.66 billion on Tuesday.
CNOOC soared 4.9% to HK$15.54 being the biggest blue-chip winner after China's largest offshore oil and gas explorer posted a better-than-estimated increase in first-half profit. PetroChina was unchanged at HK$8.61 ahead of its earnings report. Sinopec continued its downward trend, dipping 1% to HK$5.71.
Indian benchmark indices dropped in choppy trade as the rupee hit record low below 64 against the dollar on rising expectations that the US Federal Reserve will soon start withdrawing its monetary stimulus to the US economy. Weakness in European stocks also dampened sentiment. Indo-Pak tension also weighed on the bourses after the Pakistani military reportedly said on Wednesday that one of its officers has been killed by Indian troops firing across the disputed border in the Kashmir region.
The S&P BSE Sensex provisionally settled below the psychological 18,000 mark. The Sensex was provisionally down 266.98 points or 1.46%, off close to 590 points from the day's high and up about 170 points from the day's low.
Indian heavyweight and cigarette maker ITC declined. Another index heavyweight Reliance Industries also dropped. Auto stocks reversed intraday gains. Pharma heavyweights edged lower, with Ranbaxy tumbling.
Elsewhere, Indonesia's Jakarta Composite rebounded 1.04% after dropping a total of more than 8 percent on Monday and Tuesday. New Zealand's NZX 50 Index advanced 1 percent. Singapore's Straits Times Index slipped 0.6 percent. South Korea's Kospi fell 1.1 percent. Taiwan's market is closed due to a tropical storm.
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