Asia Pacific share market closed mixed after wavering between gains and losses on Thursday, 06 November 2014, on caution ahead of the European Central Bank and Bank of England decision on monetary policy, and U.S. jobs report.
ECB and BoE rate decision are the main focus today. Eyes will be on the ECB policy meeting today to see whether it will announce more monetary easing after the euro zone economy remains weak. Back in September ECB lowered all three main rates and that was followed by details of the asset purchase program in October. BoE is expected to keep rate unchanged at 0.50% and maintain the asset purchase target at GBP 375. US will release jobless claims, non-farm productivity.
Among Asian bourses
Nikkei falls 0.86% from seven-year high
Japanese share market closed weaker, registering first drop in six consecutive sessions, as profit booking spurred in afternoon amid speculation recent rally was excessive. Most of the blue chips declined, with shares of real estate companies and power producers led losses. Meanwhile, volatile dollar also compelled to take profits in exporters and other yen-sensitive shares.The benchmark Nikkei Stock Average declined 0.86%, or 144.84 points, to 16792.48.
The benchmark index rose more than 10% over the previous five sessions. Most of those gains came on the back of a second round of quantitative easing from the Bank of Japan and a shift by the 1.2 trillion yen Government Pension Investment Fund into an equity-heavy asset portfolio--both of which were announced Friday.
Shares of real estate companies and power producers declined the most among the 33 Topix industry groups. Hulic Co. plunged 7.8% to 1,150 yen, while NTT Urban Development Corp. lost 6.1% to 1,189 yen. Kansai Electric Power Co. declined 3.9% to 1,110 yen and Shikoku Electric Power Co. lost 3.6% to 1,516 yen.
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Rakuten surged 10% to 1,414 yen after reporting better than expected 72% jump in quarterly profit of 19.2 billion yen.
Toyota Motor closed slight up 0.1% to 6812 yen after the company booked a strong second quarter. Its July-September net profit rose 23% to Y539 billion on year. It also raised its full-year outlook to an operating profit of Y2.5 trillion and a net profit of Y2 trillion, both of which would be records. The company also increased its interim dividend by Y10 to Y75 per share.
Aussie stocks end 0.2% lower
Australian share market finished lower, as slide in mining stocks due to drop in iron ore price to five-year low wiped out earlier gains inspired by slightly better than expected employment figures. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each dropped by 0.2% to 5506.10 and 5479.20, respectively.
The Australian Bureau of Statistics (ABS) said today that Australia's seasonally adjusted unemployment rate remained at 6.2% in October 2014 (compared with a revised rate for September 2014). The seasonally adjusted labour force participation rate increased 0.1%age points to 64.6% in October 2014. The ABS reported the number of people employed increased by 24,100 to 11,592,200 in October 2014 (seasonally adjusted). The increase in employment was driven by increased full-time employment for both females (up 26,100) and males (up 7,300). This was partly offset by decreased part-time employment, down 9,400 to 3,533,700.
Shares of materials and resources stocks declined the most in Sydney market after the iron ore price hit a five-year low. Among the major miners, Rio Tinto shares lost 0.3% to A$60, while iron ore miner Fortescue Metals fell 8.5% to A$3.03. BHP Billiton dropped 0.1% to A$33.78.
Financial stocks were also weaker ahead of ex-dividend date. ANZ, NAB would trade ex-dividend on Friday and Westpac on Monday. Commonwealth Bank dropped 0.5% to A$81.19 and Westpac Banking Corp dropped 0.5% to A$34.41. Australia and New Zealand Banking Group dropped 0.6% to A$33.60, while National Australia Bank ended down 0.7% lower at A$34.18.
Energy stocks were higher after oil prices rebounded slightly, with Woodside Petroleum up 22 cents at A$34.35, Santos up 3 cents at A$12.54 and Oil Search up 12 cents at A$8.62.
The owner of Amart Sports and Rebel Sport chains, the Super Retail Group, gained 85 cents, or 12.06%, to A$7.90 on speculation two large foreign sports retailers could buy a large stake in the company.
Shanghai Composite ups 0.27%
Mainland China share market closed higher in volatile trade, registering seventh gain in eight consecutive sessions. Most of sectoral blue-chips were up, with shares of railway and software companies being major gainers, after the government approved more investment spending to bolster economic growth. The benchmark Shanghai Composite Index, which tracks both A and B shares, closed 6.61 points, or 0.27%, higher at 2425.86.
The National Development and Reform Commission approved feasibility reports for six railway projects with a combined investment of 184.4 billion yuan. The NDRC also approved a proposal for a railway line linking Xiangyun and Lincang in southwest Yunnan province.
Shares of railway companies advanced after the government approved more investment spending to bolster economic growth. China Railway Group gained 2.6% to 4.43 yuan while China Railway Construction Corp. added 2.8% to 7.08 yuan.
Software-related shares performed well after Premier Li Keqiang said China will strengthen law enforcement of intellectual property rights and promote legitimate software among institutions and individuals. Shenzhen Kaifa Technology jumped 10% daily limit to 7.62 yuan and Beijing Join-cheer Software Co gained 5.2% to 30.85 yuan.
Shares of utilities players declined on profit booking following yesterday rally. GD Power Development Co fell 0.7% to 2.89 yuan. China Yangtze Power Co lost 1.8% to 8.33 yuan. Huaneng Power declined 4.1% to 6.35 yuan after electricity supplier announced plans to raise HK$3.14 billion in a private share placement. The share-sale price was at an 8.3% discount to yesterday's closing level.
Hang Seng falls 0.2%
Hong Kong share market declined for fourth consecutive day, amid further uncertainty over the status of a landmark scheme to link the Shanghai and Hong Kong stock exchanges. The decline came despite a record close on Wall Street overnight and gain in mainland shares on hopes of fresh economy-boosting measures from the government. The Hang Seng Index fell 0.2%, or 46.31 points, to 23649.31. The HSI has fallen a combined 349 points over the past four trading days. Turnover reduced to HK$58.33 billion from HK$67.20 billion on Wednesday.
Investors are still watching for movement on the scheme after Hong Kong's Financial Secretary John Tsang Chun-wah said Beijing officials were positive on the launch but were still waiting for the right time.
Shares of casino players extended losses after posting the worst monthly drop in gambling revenues on record in October. Official data showed that Macau gross gaming revenues fell 23.2% to MOP28 billion in October. Galaxy Entertainment was down 3.2% to HK$49.20, Sands China dropped 4.6% to HK$43.15, and Wynn Macau declined 2.8% to HK$25.65.
China telecom operators were higher on talks that mainland authorities plan to issue international 4G licenses next month. China Mobile (00941) added 1.4% to HK$97. China Unicom (00762) gained 1.2% to HK$11.46.
Hong Kong Television Network shares soared 28.6% to HK$4.77 after the company signed an exclusive deal with a Tencent-controlled video platform on broadcasting rights.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.8% to 8991.02. South Korea KOSPI rose 0.26% to 1936.48. New Zealand's NZX50 rose 0.03% to 5403.61. Singapore's Straits Times index rose 0.1% at 3290.96. Indonesia's Jakarta Composite index dropped 0.6% to 5034.23. India and Malaysia stocks market closed for public holiday.
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