Asia Pacific share market closed mixed on Thursday, 14 May 2015, as sentiment was muted on concern over the U.S. economic outlook after April retail sales data released overnight failed to meet expectations of a rebound. Risk sentiments bruised further by startling rise in global bond yields amid uncertainty over the timing of the US interest rate hike.
Investment rationale mostly depressed by weak U.S. retail sales figures which reinforced recent worries about the momentum of growth in the world's biggest economy. Data on Wednesday showed U.S. retail sales were flat in April as households cut back on purchases of automobiles and other big-ticket items, the latest sign the economy was struggling to rebound strongly after barely growing in the first quarter.
Among Asian bourses
Nikkei falls on stronger yen, disappointing US sales data
Japanese share market declined, due to yen appreciation against the US dollar and concern over the U.S. economic outlook after weaker than expected April retail sales data. But losses were limited on optimism over domestic companies' solid earnings and forecasts, and expectations for the Bank of Japan's commitment to purchase exchange-traded funds when the market is depressed. The benchmark Nikkei 225 index dropped 194.48 points, or 0.98%, to finish at 19570.24. The broader Topix index of all first-section shares ended down 12.72 points, or 0.79%, up at 1591.49.
The U.S. dollar traded in the lower 119 yen range on Thursday in Tokyo, amid concerns about the U.S. economy stemming from weak economic data. The dollar fetched 119.21 yen compared with 119.20 yen in New York overnight and 119.82-84 yen in Tokyo on Wednesday. The euro was quoted at 136.15 yen against 135.32 yen in New York overnight and 134.84 yen in Tokyo late Wednesday.
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Shares of lenders were major drag on the Tokyo market, with Sumitomo Mitsui Financial Group falling 2.8% to 5110 yen after reporting a 9.8% drop in net profit to 753.61 billion yen in the fiscal year that ended in March. Revenue increased 4.5% to 4.85 trillion yen. SMFG's net interest income rose to 1.5 trillion yen from 1.48 trillion yen mainly boosted by strong overseas lending.
Shares of land transport players were also down, with Central Japan Railway lower by 4% to 20,395 yen, while Odakyu Electric Railway slid 3.4% to 1114 yen.
Nissan Motor Co added 2.4% to 1276 yen after releasing a 17.6% rise in group net profit for the previous fiscal year to 457.57 billion yen, citing the yen's continued weakness against the U.S. dollar and firm overseas sales.
Konica Minolta surged 11.9% to 1516 yen after forecasting a 50 billion yen group net profit for the current fiscal year ending March 2016 and stepping up its dividend payout.
Australia market suffers from miners, healthcare stocks
The Australian share market finished lower, on profit booking following gains on the previous two sessions and after a leap in the Aussie dollar to a four-month high. Losses were across the board with healthcare and resource-related players being major losers. The benchmark S&P/ASX 200 Index declined 18.50 points, or 0.32%, to 5696.60, while the broader All Ordinaries Index lost 18.30 points, or 0.32%, to 5692.50. Market turnover was relatively strong, with 2 billion shares changing hands worth of A$5.39 billion.
Materials and resources stocks suffered heavy losses on the Sydney market after drop in the iron ore prices and surge in the Australian dollar. BHP Billiton tumbled 1.6% to A$31.97 while Rio Tinto dived 2.2% to A$57.70. Fortescue metal crashed 8% to A$2.31.
Healthcare stocks closed down, with medical device maker Resmed down by 18.4% to A$6.73 after a major clinical trial revealed the company's sleep therapy products put the lives of heart attack victims at further risk. On the other side, Sirtex was up 35.1% to A$27, after research results showed that liver cancer sufferers treated with its radioactive spheres enjoyed an improvement in survival rates.
Agricultural major GrainCorp dropped 2.5% to A$9.86 after reporting a 40% fall in six-month profit due in part to a drought in eastern Australia.
China stocks mixed on soft data, IPO worries
Mainland China equity market closed marginally higher after fluctuating between gains and losses on Thursday, 14 May 2015, as risk sentiments turned muted after weaker than expected new loan data for April and worries over a fresh spate of new share listings. The Shanghai Composite Index added 2.55 points, or 0.06%, to finish at 4378.31 points. The CSI300 index reduced by 17.66 points, or 0.37%, to 4700.78.
Total of 6 out of 10 SSE industry groups ended down, with information technology issue being major loser, down by 1.5%, followed by consumer discretionary down 1%, industrials down 0.8%, consumer staples down 0.8%, financials down 0.5%, and healthcare down 0.2%. On the upside- material issue rose by 2%, utilities 1%, energy 1%, and telecommunication services 0.5%.
The China's central bank said in a statement after Wednesday's market close that Banks lent 707.9 billion yuan (US$114.1 billion) in yuan loans in April, 185.5 billion yuan more than the same month last year but nearly 500 billion yuan below March's lending. M2, the broad measure of money supply, rose 10.1% in April from a year ago, slowing from March's 11.6% and missing the official target of 12%. The PBOC data also showed April's total social financing, the broadest measure of credit supply that includes loans, bank acceptance bills, corporate bonds and equity financing, amounted to 1.05 trillion yuan in April, 188.1 billion yuan less than March and 448.8 billion yuan below April last year.
Chinese investors were concerns over market liquidity as a spate of initial public offerings (IPOs) next week could lock up some 3 trillion yuan ($483.19 billion) worth of subscription capital, as regulators move to accelerate IPO approvals.
Hang Seng rise 0.14% in volatile trade
The Hong Kong stock market closed higher in volatile session, with shares of software and game developers being major gainers reports that China could launch the Shenzhen-Hong Kong Stock Connect as early as in the third quarter of this year. The Hang Seng Index added 37.27 points or 0.14% to 27286.55, off an intra-day high of 27397.67 and day low of 27192.93. Turnover reduced to HK$126.63 billion from HK$144 billion on Wednesday.
Shares of technology players jumped after upbeat earnings from Tencent Holdings and as reports that China could launch the Shenzhen-Hong Kong Stock Connect as early as in the third quarter of this year. Shares of Tencent Holdings (00700) jumped 2.9% to HK$161.3 after posting a 6.6% rise in net profit to Rmb6883 million for the three months ended 31 March 2015. The revenue was Rmb22399 million, an increase of 21.7% from a year earlier and 6.8% from the previous quarter.
Online game developer Forgame Holdings jumped 14.5% to HK$19.64, Boyaa International Interactive leapt 9% to HK$8.49, Baioo Family Interactive surged 7.1% to HK$1.20, software Kingdee International Software Group Co rose 6.1% to HK$5.19, and NetDragon Websoft Inc rose 5.9% to HK$35.95.
Oil majors fell across the board on talks that the authorities may lower its export quotas for refined oil in 2Q. CNOOC (00883) dipped 2.3% to HK$12.48. PetroChina (00857) softened 0.5% to HK$9.37.
Telecommunications operators recorded declines after the State Council China's cabinet urged telecom companies to charge less for Internet service while also improving connection speeds. China Telecom (00728) slipped 3% to HK$5.52. China Unicom (00762) fell 1% to HK$13.84. China Mobile (00941) was flat at HK$105.2.
Sensex registers small losses
Indian benchmark indices registered small losses amid a divergent trend among various index constituents. The Sensex was provisionally off 55.43 points or 0.2% at 27,195.67. The CNX Nifty was down 11.25 points or 0.14% at 8,224.20.
Oriental Bank of Commerce jumped after lender reported improved bad loan ratios. OBC reported a net loss of Rs 178.44 crore in Q4 March 2015 compared with net profit of Rs 310.32 crore in Q4 March 2014. Total income rose 1.13% to Rs 5719.39 crore in Q4 March 2015 over Q4 March 2014. However, its gross NPA improved to 5.18% in March quarter compared with 5.43% in the December quarter.
Shares of NCC rose after the company reported consolidated net profit of Rs.51.98 crore in the March quarter as compared with Rs.2.91 crore in the year ago period.
Aditya Birla Nuvo jumped after the company reported 88.29% jump in its net profit to Rs.331.63 crore in the March quarter as compared with Rs.176.13 crore a year ago.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 71.20 crore yesterday, 13 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 254 crore yesterday, 13 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index slipped 1.16% to 9610.83. South Korea's KOSPI added 0.29% to 2120.33. New Zealand's NZX50 fell 0.23% to 5738.40. Singapore's Straits Times index added 0.08% at 3455.78. Malaysia's KLCI climbed up 0.25% to 1807.55.
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