Asia Pacific share market retreated on Monday, April 15, 2013, as risk off selling across the sectors on renewed doubts about the strength of the global economic growth after China's slowdown, weak economic reports from the U.S. and Europe's malaise.
The National Bureau of Statistics said on Monday that China's gross domestic product for the January-March quarter rose 7.7% from a year earlier, weakening from 7.9% growth in the fourth quarter. Among the data from China on Monday, industrial production increased 8.9% from the year-earlier period, slowing from a 9.9% average rise for the January-February period.
The Commerce Department of the US said on Friday that domestic retail and food service sales contracted by 0.4% in March to a seasonally adjusted $418.28 billion, a sign that consumers may be more hesitant to buy non-essential items as higher taxes and government spending cuts take hold. The figure was up 2.8% from a year ago.
In the Asia Pacific market, the Tokyo share market retreated for a second straight trading day after a series of gains, as investors chose to book recent profit after China's slower-than-expected economic growth and disappointing US retail sales weighed on sentiment. Meanwhile, yen strengthens against major currencies also weighed on risk sentiments. The Nikkei Stock Average down by 209.48 points to end the day at 13,275.66, while broader Topix index lost 14.58 points to 1133.99.
The Japanese yen weakened broadly in the initial part of last week and even have EUR/JPY breached 130 psychological. However, 100 in USD/JPY seemed to be a big hurdle which the pair failed for the moment. The Japanese currency had been near 100 yen to the dollar last week but was now trading in the lower-98 yen range after U.S. Treasury report warning Tokyo not to engage in competitive currency devaluation.
The Australian share market declined, with mining stocks led retreat as soft Chinese GDP data and disappointing U.S. retail sales festering worries about slowing growth in global demand for the commodity. The benchmark S&P/ASX200 index dropped 45.60 points from prior day to finish at 4967.90, while broader All Ordinaries index lost 49.20 points to close at 4966.80.
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Australian gold miners suffered steep losses today, dragging the All Ordinaries Gold index 9.9%, in response to steep fall in bullion prices after fund managers exited position amid concerned about central bank sales. The Comex June futures price fell by $63.50 an ounce or 4.1% to $1,501.40 per ounce. Spot gold was even weaker at $1,478.24 an ounce. Gold fell 4.7% last week. Among gold miners, Newcrest Mining sank 8.2% to A$17.92, Perseus Mining 14.1% to A$1.46, and Kingsgate 14.9% to A$2.97. Materials and resources heavyweights went lower due to fall in base metal prices on the London Metals Exchange on Friday and after weaker than expected March quarter economic growth in China, its biggest customer. Index leader BHP Billiton declined 3% to A$32.34 and Rio Tinto fell 3.2% to A$55.09. Fortescue Metal dropped 5.7% to A$3.78.
China shares fell down for third day in row, dragging the benchmark Shanghai Composite index below the 2,200-point level, on renewed jitters about worries about the recovery of the world's second-largest economy after unexpected fall in March quarter GDP data. The Shanghai Composite Index dropped 1.1% to 2,182.61 at close. The measure lost nearly 11% from a Feb. 6 high amid concern steps to cool property prices will drag on economic growth.
Number of Chinese stocks fell sharply on disappointment over the economic data, with Gold stocks led the decline of non-ferrous metals producers as gold price tumbled more than 5% last Friday. Zijin Mining Group Co, the nation's largest gold producer, slipped 5.6% to 3.20 yuan and Zhongjin Gold Corp plunged 6.7% to 12.93 yuan. Materials and resources heavyweights went lower due to fall in base metal prices on the London Metals Exchange on Friday and after weaker than expected March quarter economic growth in China. Jiangxi Copper Co dropped 4.7% to 20.89 yuan and Aluminum Corp of China 2.9% to 4.08 yuan.
Tourism-related stocks continued a weak run in Shanghai due to the H7N9 avian flu. Huangshan Tourism Development Co slumped 3.5% to 12.30 yuan. China International Travel Service Corp shrank 2.3% to 29.30 yuan.
Hong Kong market declined, registering second day of straight fall, as investors chose to book recent gains, due to fall in commodity prices, weak US retail sales data, and slower than expected Chinese economic growth (GDP) figures. The benchmark Hang Seng index lost 281.82 points or 1.28% from previous session to finish at 21,807.23 on trading turnover of HK$47.35 billion. Among the 50 Hang Seng index blue chips, 26 stocks down, while 4 stocks rose. China Resources Power Holdings Co. dipped 6% to HK$22.75, while Cosco Pacific jumped 0.8% to HK$10.30, making themselves the largest blue-chip loser and winner.
Indian market, however, bucked regional trend, with the benchmark indices surged to hit fresh intraday high in afternoon trade after data released by the government today, 15 April 2013, showed that inflation based on the wholesale price index eased in March 2013. The barometer index, the S&P BSE Sensex, was up 150.64 points or 0.83%, up close to 250 points from day's low and off about 5 points from the day's high. Index heavyweight Reliance Industries (RIL) extended intraday gains ahead of the company's Q4 results tomorrow, 16 April 2013. Another index heavyweight and cigarette major ITC held firm. Many FMCG stocks gained on reports of likely normal monsoon this year. The market breadth, indicating the overall health of the market, was positive. Realty stocks edged higher on hopes of interest rate cut from the Reserve Bank of India after latest data released by the government today, 15 April 2013, showed that inflation based on the wholesale price index eased in March 2013. Metal stocks edged lower on weak economic data in China, the world's largest consumer of copper and aluminum.
Elsewhere, Indonesia's Jakarta Composite dropped 0.6%, Singapore's Strait TImes lost 0.2%, South Korea's KOSPI Composite dropped 0.2%, and Taiwan's Taiex shed 0.7%, while Malaysia's KLSE Composite added 0.1% and New Zealand's NZX50 rose 0.4%,
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