Headline equities of the Asia Pacific markets were mostly down on Tuesday, 12 January 2016, amid concerns about hard landing in China economy and increased geopolitical tensions in the Middle East and around North Korea.
China's main stock market fell 5.3% on Monday, extending last week's near-10% loss, amid fears that Chinese authorities are unable to stem recent turmoil in its financial markets, concerns over China's flagging economy, weakening currency and a regulatory blunder.
Traders largely remain on edge, as Chinese authorities contend with the prospect of increasing capital outflows from the world's second largest economy.
Shares of commodities and related companies were major drag in the regional market today after U.S. oil (New York Mercantile Exchange) and Brent crude (Intercontinental Exchange Europe) fell below $32 a barrel in intraday trading Monday to near 12-year lows. Copper also hit a near-seven-year low.
Among Asian bourses
Australia Market falls to eight straight sessions
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Australian share market ended down for eight straight sessions, after erasing initial gain late afternoon, as risk sentiments remain subdued amid Chinese growth concerns. Most of the ASX industry groups declined, with shares of energy and materials issues being major losers. At the close, the benchmark S&P/ASX 200 index declined 7.10 points, or 0.14%, to 4925.10 points, while the broader All Ordinaries index lost 8.50 points, or 0.17%, to 4982.20 points. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, rose 7.6% at 24.03, suggesting 6.9% swing in the equity benchmark index in the next 30 days.
Shares of material and energy sectors continued falling, due to pullback in commodity prices, with crude futures hit fresh 12-year low fuelled by Chinese growth concerns. Global benchmark Brent crude tumbled 6.2% to $31.48, while US Nymex crude nosedived 5.3% to $31.41, their lowest marks since 2003. Among top oil explorer and refiners, Woodside Petroleum declined 2% to A$27.08, Santos 8.1% to A$2.95, and Origin Energy 4.7% to A$4.05. AWE tumbled 6.67% to A$0.42 while Beach Energy sunk 10.47% to A$0.385 after naming oil and gas specialist Matthew Kay as its new chief executive. Material shares skidded, too, with BHP Billiton down 3.5% to A$15.01 and Rio Tinto lower 3.3% to A$39.15. Junior iron ore miner Fortescue Metals sank 3.5% to A$1.585. Whitehaven Coal sunk 5.65% to A$0.585 after the miner reaffirmed full-year production guidance.
Banks and financial stocks ended mixed amid concerns about how China's slowing economy and financial turmoil will affect Australia's domestic economy and housing market. Among top lenders, Commonwealth Bank of Australia rose 1% to A$79.39 and Westpac Banking Corp 0.9% to A$30.82, while National Australia Bank fell 0.3% to A$27.35 and Australia & New Zealand Banking Group 0.4% to A$25.05.
The ANZ-Roy Morgan consumer confidence index fell 1.9% in the past week as concerns around Chinas' economic growth prospects and volatility in global financial markets bug consumers.
New Zealand shares rise
Equities on the New Zealand share market rose for the first time this year, stabilising as turnover strengthened, with Trade Me Group, New Zealand Oil Refining Co, and Mighty River Power gaining while Metro Performance Glass fell.
By the provisional closing, the S&P/NZX 50 Index rose 9.5 points, or 0.2%, to 6112.34. Within the index, 22 stocks were up, 18 down and 10 were unchanged. Turnover was $114 million. The index has previously fallen every trading day since the start of 2016, shedding 3.5% over five days at yesterday's close, with global equity markets nervous and oil prices falling daily to hit US$31.31 per barrel of Brent Crude.
Nikkei sinks 2.71%
Japan share market declined for sixth straight sessions, as risk aversion selloff triggered amid concerns about China's economic slowdown and increased geopolitical tensions in the Middle East and around North Korea. Meanwhile, appreciation of yen against the basket of major currencies also weighed down investors sentiments. All 33 TOPIX sectors recorded losses, with Mining, Oil & Coal Products, Marine Transportation, Nonferrous Metals, Iron & Steel, and Banks issues being major losers. The 225-issue Nikkei Stock Average ended 479 points, or 2.71%, lower at 17218.96 after a market holiday on Monday. The Topix index of all Tokyo Stock Exchange First Section issues lost 45.37 points, or 3.13%, to 1401.95.
Shares of mining and energy companies suffered heavy selloff in Tokyo market due to pullback in commodity prices fuelled by Chinese growth concerns. Global benchmark Brent crude tumbled 6.2% to $31.48, while US Nymex crude nosedived 5.3% to $31.41, their lowest marks since 2003. Oil explorer Inpex Corp dropped 5.8% and Oil refiner JX Holdings Inc. lost 5.6%, while JGC Corp., which provides services to energy firms, slumped 3.2%. Sumitomo Metal Mining Co. dropped 7.7% and Nippon Steel & Sumitomo Metal Corp slid 4%.
Shares of export-related companies fell further after yen appreciated to lower-117 level against the dollar. A stronger yen can pressure exporters' earnings when they are translated back into the Japanese currency. Soy sauce maker Kikkoman Corp, which gets 47% of revenue from North America, dropped 2.5%. Subaru automaker Fuji Heavy Industries, which relies on North America for 60% of sales, lost 1.3%. Among other blue chip exporters, Sony Corp dropped 5.3% and Panasonic Corp 3.4%, meanwhile Toyota Motor Corp dropped 3.1%, Nissan Motor Co 1.8% and Mazda Motor Corp. 4.8%. Alps Electric Co. sank 2.7%, Sharp Corp 1.8%, Fanuc Corp 1.7%, and TDK Corp 3.9%. Shares of Japanese companies that rely on China for a large part of their businesses also declined. Air-conditioner maker Daikin Industries, which gets a fifth of sales from China, lost 1.8%.
Japan posted a current account surplus of 1,143.5 billion yen in November, up 159.8% on year, the Ministry of Finance said on Tuesday. The headline figure exceeded expectations for a surplus of 895.0 billion following the 1,458.4 billion yen surplus in October. The trade balance showed a deficit of 271.5 billion yen versus expectations for a deficit of 158.7 billion yen following the 200.2 billion yen surplus in the previous month. Exports were down 6.3% on year to 5.923 trillion yen after dipping 3.7% in October to 6.332 trillion yen. Imports skidded an annual 10.9% to 6.194 trillion yen after tumbling an annual 16.4% to 6.132 trillion yen.
China Market closes higher
The Mainland China stock market ended in the green terrain after zigzagging between gains and losses in a tight range throughout the day, as policy makers intensified efforts to stabilize the yuan. Sentiment was largely supported by reports that China's cabinet, the State Council, may take a more active more in financial regulation following a series of perceived missteps under the current regulatory regime. The Shanghai Composite Index was up 0.2%, or 6.16 points, to close at 3022.86. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, grew 23.26 points, or 0.73%, to 3215.71
Most of the CSI sectors recovered, with technology and health-care shares led gains. Han's Laser Technology Industry Group Co. jumped 5.4%. Beijing Tongrentang Co. and Shanghai RAAS Blood Products Co. both rallied more than 6%.
Hong Kong Market falls
The Hong Kong stock market ended down in volatile trading, amid deepening concerns over China's growth pace and increased geopolitical tensions in the Middle East and around North Korea. The Hang Seng Index (HSI) opened up 141 points at 20,030, and rose as much as 242 points at one stage to 20,130. It also saw the low of 19,694, falling 193 points. The benchmark Hang Seng Index dropped 176.74 points, or 0.89%, to 19711.76 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 65.85 points, or 0.77%, to 8439.31 points. Turnover reduced to HK$77.2 billion from HK$87.5 billion on Monday.
Shares of property developers declined heavily in Hong Kong market. COLI (00688) slipped 2.4% to HK$22.05. CR Land (01109) sank 4.2% to HK$17.9. Henderson Land (00012) dipped 2.4% to HK$43 after Credit Suisse downgraded its rating for the stock to "underperform". Wharf (00004) and SHKP (00016) also declined 1.6% and 0.3% to HK$39.25 and HK$89.8.
China Vanke (02202) rose 2.7% to HK$18.1, after the developer said it signed a non-legal binding letter of intent for cooperation, regarding a possible transaction with a potential party on 25 December 2015. Meanwhile, it is also negotiating and discussing with a number of potential parties.
GF Sec (01776) gained 3% to HK$16.98 after the company reported that its net profit fell 12.4% month-on-month to RMB802 million in December. Haitong Sec (06837) retreated 0.9% to HK$10.98.
Sensex drifts lower as FPIs step up selling
Stocks from banking, telecom and oil sector led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 127.65 points or 0.51% at 24,697.39, while the Nifty fell 53.55 points or 0.71% at 7,510.30, as per the provisional closing data. Data showing stepping up of selling of Indian stocks by foreign portfolio investors (FPIs) hit sentiment adversely.
Data showing stepping up of selling of Indian stocks by foreign portfolio investors (FPIs) hit sentiment on the bourses adversely. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1319.24 crore yesterday, 11 January 2016, as per provisional data released by the stock exchanges. The outflow was substantially higher than the figure of Rs 677.80 crore for the preceding trading session on 8 January 2016.
IndusInd Bank fell 3.31% to Rs 906.55. The bank announced during market hours today, 12 January 2016, that its net profit rose 29.92% to Rs 581.02 crore on 22.05% rise in total income to Rs 3766.70 crore in Q3 December 2015 over Q3 December 2014. On absolute basis, IndusInd Bank's gross non-performing assets (NPAs) stood at Rs 681.13 crore as on 31 December 2015, compared with Rs 602.10 crore as on 30 September 2015 and Rs 672.66 crore as on 31 December 2014.
L&T rose 0.53% at Rs 1,181 after the company's construction division won orders worth Rs 1247 crore in the buildings & factories and power transmission & distribution segments. The stock hit a high of Rs 1,199.95 and a low of Rs 1,174 in intraday trade.
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