Asia Pacific share market finished mixed on Wednesday, 16 March 2016, as market sentiment muted on following a drop in Wall Street overnight, weaker commodities prices, and on caution ahead of the conclusion of the U.S. Federal Reserve's two-day Federal Open Market Committee meeting.
Market participants opted for a wait-and-see mood before the results of the U.S. Federal Reserve's two-day Federal Open Market Committee meeting come out later on Wednesday. Most analysts believe that the Fed will put off an interest rate hike at the latest meeting in view of the recent lackluster economic situation in the United States. Investors are paying close attention to (Fed Chair Janet) Yellen's news conference and the FOMC statement. They want to know the pace of expected interest rate hikes.
The gathering comes as central banks remain at the centre of market attention after the European Central Bank last week unveiled a range of aggressive stimulus measures.
Among Asian bourses
Australia Market closes in positive territory
Australian share market managed to finish in positive territory, despite mixed leads from Wall Street overnight and weaker commodity prices. But gains were limited, as investors stuck to the sidelines ahead of the US Federal Reserve's rates decision. At the close, the benchmark S&P/ASX200 index advanced 7.60 points, or 0.15%, at 5119, while the broader All Ordinaries index grew 7.10 points, or 0.14%, to 5175.70.
Material and resources stocks were down, hurt by fall in iron ore prices. Iron ore dropped for a sixth day, erasing gains from a record spike last week, as data showed Chinese steel production weakened further at a time when supplies from the biggest miners are set to increase. Iron ore fell 4.8% to $US52.88 a tonne overnight. Mining giant BHP Billiton fell 1.5% to A$16.88, Rio Tinto 0.7% to A$42.69, and Fortescue Metals Group 4.3% to A$2.43.
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Nikkei falls on yen ascent, Fed policy decision
Japan share market ended in negative terrain in cautious trade, as risk sentiments hurt by weak lead from Wall Street overnight, yen's ascent against greenback, and on caution ahead of the US central bank's interest rate call. Notable decliners comprised banking, iron and steel, and security-linked shares. The 225-issue Nikkei average fell 142.62 points, or 0.83%, to end at 16974.45. The Topix index of all first-section issues dropped 11.58 points, or 0.84%, to 1360.50.
Carmakers and machinery manufacturers were among the biggest drags on the Topix, with Honda Motor Co. falling 2.2%.
Banks fell the most among the 33 Topix industry groups, with Mitsubishi UFJ Financial Group sinking 3.6%.
Okuma Corp. slid 3.3% after Credit Suisse Group AG downgraded its rating on the industrial-machinery producer to neutral from outperform.
Food-related stocks were the biggest boost to the Topix. Kobe Bussan Co. surged 11% after the supermarket operator announced its first-quarter operating profits rose 49% against the previous year.
Sony Corp. rose 3.2% after unveiling a virtual-reality headset priced significantly below rival devices.
Sharp Corp. sank 12% after people familiar with the matter said Foxconn Technology Group is delaying finalization of its deal with Sharp.
China Market extends gain after upbeat comments by the premier
Mainland China stock market managed to close higher, helped by comments from Chinese Premier Li Keqiang, who told at his annual news conference in Beijing that China would "employ innovative means" to support the economy if growth drops out of its normal range. Premier Li said the government would promote market-oriented reforms in the country's financial markets and improve coordination in financial regulation as it pursues a goal of 6.5 per cent average expansion over the next five years. The benchmark Shanghai Composite Index rose 0.21%, or 6.06 points, to 2870.43. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 15.29 points, or 0.5%, to 3090.03.
The country's annual meeting of parliament ended much as it began, with a stream of assurances by Premier Li Keqiang that the economy was facing difficulties but not in danger of a hard landing. In a news conference at the end of the meeting, Li said that while downward pressure on the economy persists, there would be no sharp deterioration in activity as long as the government presses ahead with reforms.
Finance shares led indexes higher, with major gainers including Shanghai Pudong Development Bank Co and China Minsheng Banking Co. ICBC, the largest lender, advanced 1.4%. Ping An rose 2.5% after its net income increased 38% in 2015.
Consumer-staple shares fell with Kweichow Moutai Co., the biggest maker of baijiu liquor, slump 1.4%.
Hong Kong Stocks extends fall
The Hong Kong stock market extended losses, as investors remained skittish ahead of the outcome of the U.S. Federal Reserve's two-day Federal Open Market Committee meeting later in the day. The benchmark Hang Seng Index declined 31.07 points, or 0.15%, to 20257.70 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 34.27 points, or 0.4%, to 8571.36 points. Turnover increased slightly to HK$58.7 billion from HK$56.5 billion on Tuesday.
Shares of insurers were mixed after Credit rating agency Moody's changed the outlook for the Chinese life insurance industry to negative from stable. China Taiping (00966) dipped 1% to HK$15.64. PICC P&C (02328) softened 1% to HK$13.3. Ping An (02318) added 1% to HK$35.3 after the insurer reported 2015 earnings growth of 38% to RMB54.2 billion.
Property counters were firmer ahead of the release of Fed's meeting decision. New World Development (00017) and Hang Lung Properties (00101) put on 1% to HK$7.45 and HK$14.76. Henderson Land (00012) nudged up 0.9% to HK$46.8.
Sensex clocks modest gains
Gains in index heavyweights Infosys and ITC, a strong intraday rebound in another index heavyweight HDFC and recovery in banking and pharma stocks aided a strong intraday rebound for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 131.31 points or 0.53% to settle at 24,682.48. The Nifty rose 38.15 points or 0.51% to settle at 7,498.75.
Asian Paints edged lower on reports that a foreign brokerage has downgraded the stock to "neutral" from "buy", citing expensive valuation. The stock dropped 2.17% to Rs 866.85. The brokerage reckons that there is not much earnings visibility for the company once crude oil price stabilises. The brokerage has reportedly trimmed its revenue growth forecast for the company. The brokerage expects improvement in the company's EBITDA (earnings before interest, taxation, depreciation and amortization) margin from FY 2016. It, however, does not expect a significant expansion in profit margins.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 fell 0.2% to 6562.96. Taiwan's Taiex index added 1% to 8699.14. South Korea's KOPSI rose 0.3% to 1974.90. Malaysia's KLCI rose 0.2% to 1693.43. Singapore's Straits Times index rose 0.2% at 2844.21. Indonesia's Jakarta Composite index climbed 0.2% to 4861.44.
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