Investors booked profits following stronger-than-expected US jobless-claims data released on Thursday, 12 September 2013, which triggered speculation that the Federal Reserve would begin trimming its monetary stimulus at next week's meeting.
The profit taking pressure also triggered in anticipation of shares falling next week if, as expected, the US central bank decides to start reducing its $85 billion a month asset purchase program to stimulate the world's biggest economy.
The US central bank scheduled it meets next week on Sept. 17-18 and market pundits speculate the tapering process could begin after the meeting in the wave of relatively upbeat data recently. Among US data out later on Friday are retail sales for August and consumer sentiment for September.
Stocks across Asia posted healthy returns since last Friday, as further signs of an economic recovery in China combined with lower expectations of U.S. military intervention in Syria supported regional risk sentiment.
Among regional bourses, Tokyo shares finished slight higher after swinging between gain and losses on last trading session of the week, helped by gains in export related players after yen depreciated to upper 99-level against the greenback. The benchmark Nikkei 225 index closed 17.40 points higher at 14404.67, while the broader Topix index of all first-section shares rose 0.92 point to 1185.28.
Convenience store operator Seven & I Holdings Co moved 1.12% higher at 3610 yen on news report that the firm's consolidated operating profit for the fiscal half year ending Aug. 31 will probably rise to a record high.
More From This Section
Shares of display maker Sharp Corp fell 4.4% to 347 yen, extending yesterday's 6% fall, on reports that the LCD producer is preparing to procure about 150 billion yen through a public offering of new shares. Sharp also plans to procure about 20 billion yen through a third-party allocation of new shares to three business partners (Lixil Group Corp, Makita Corp and Denso Corp) eventually boost its capital by a total of around 170 billion yen.
In Australia, Australian share market declined for the first time in six straight sessions, with shares in precious metal miners and other materials & resources blue chips were leading decliners. The benchmark S&P/ASX200 was down 22.90 points to finish at 5219.60 and the broader All Ordinary index was lower by 23.50 points to finish at 5214.70.
Shares of precious-metals miners tumbled in Sydney in the wake of sharp loss for gold prices overnight. Benchmark Comex gold futures lost more than 2.4% on Thursday, while silver plunged 4.4%. Evolution Mining tanked 8.99% to A$0.81, Kingsgate Consolidated lost 7.12% to A$1.71 and Newcrest Mining declined 1.72% to A$12.02. The more diversified miners also took a hit today on profit taking, with BHP Billiton off 1% to A$36.20, Rio Tinto losing 1.7% to A$63.08 and Fortescue Metals Group dropping 2.2% to A$4.56.
In New Zealand, NZ shares continued their climb today, approaching a to level not seen since May, buoyed by a positive earnings season and fading fears of western military action in Syria. The NZX50 Index rose 9.445 points, or 0.2%, to 4,650.942. Within the index, 22 stocks rose, 16 fell and 12 were unchanged.
Shares in Warehouse Group, the New Zealand's biggest listed retailer, reversed an earlier gain, closing down 1.3% to NZ$3.71 in spite the company boosted annual profit on property sales and contributions from acquisitions. Adjusted net profit, which strips out abnormal movements, climbed 13% to $73.7 million, within its guidance of between $73 million and $76 million.
In China, the Chinese market declined for the first time in six sessions in row as wave of profit taking, dragging the benchmark Shanghai Composite index 0.86% from yesterday's closing to finish at 2236.22. The Shanghai index gained 4.5% this week.
Shares of Chinese shipping companies retreated on profit taking after the Baltic Dry Index, which measures the cost of transporting commodities from copper to corn, fell for the first time in nine days yesterday in London. China Shipping Development, a unit of the country's second-biggest sea-cargo group, slid 5.3% to 5.02 yuan.
Shanghai International Port Group Co. slumped 2.5% to 6.51 yuan. The port operator has climbed 155% since Aug. 22, when the Ministry of Commerce said the city's free-trade zone proposal was approved in July.
Chinese financial shares also declined on profit taking following strong recent run on financial reform hopes after Premier Li comments that China will push forward interest-rate and exchange-rate reforms and the internationalization of the yuan while promoting the currency's convertibility under the capital account. Among lenders, Shanghai Pudong Bank slid 2.8% to 11.91 yuan, paring this week's rally to 24%. Industrial & Commercial Bank of China fell 1.5% to 3.99 yuan.
In Hong Kong, HK shares fell down, with weakness among property issues helping to pull the Hang Seng Index 0.17% down to finish at 22915.28. Shares of Sun Hung Kai Properties dropped 1.36% to HK$101.70 after announcing lower annual net profit and underlying profit as government measures to tamp down real-estate prices.
In India, Indian benchmark indices edged lower in choppy trade after Prime Minister's Economic Advisory Council (PMEAC) sharply trimmed India's GDP growth forecast to 5.3% for the year ending 31 March 2014 (FY 2014) from earlier estimate of 6.4% and said that the current stance of monetary policy has to continue until stability in the rupee is achieved. The BSE Sensex lost 49.12 points or 0.25%, off 166.61 points from the day's high and up 57.08 points from the day's low.
Indian index heavyweight and cigarette major ITC edged lower in choppy trade. Other FMCG stocks also declined. IT stocks declined on recent strong rebound of the rupee against the dollar. Two-wheeler stocks rose on expectations of pickup in sales during the upcoming festive season and on hopes good rains this year will boost rural sales.
The Index of Industrial Production (IIP) grew 2.6% in July as against a 2.2% decline in June, while consumer price index (CPI)-based inflation decelerated in August for the second consecutive month to 9.52% as against 9.64% in July.
Prime Minister's Economic Advisory Council (PMEAC) today, 13 September 2013, sharply trimmed India's GDP growth forecast to 5.3% for the year ending 31 March 2014 (FY 2014) from earlier estimate of 6.4% and said that the current stance of monetary policy has to continue until stability in the rupee is achieved. The full impact of various measures taken over the last six months will be reflected later in this year, PMEAC said. Depreciation of the rupee may put some upward pressure on inflation, it said. On balance, WPI inflation by end March 2014 will be around 5.5% as against the average of 7.4% in 2012-13 and 5.7% at end March 2013. Controlling current account deficit (CAD) remains main concern at present, the council said. Current account deficit is projected at $70 billion (3.8% of GDP) in 2013-14 against an estimated $88.2 billion (4.8% of GDP) in 2012-13, it said. The CAD may go even below $70 billion in 2013-14 if the recent trends in exports and imports are maintained through the year, the PMEAC said.
For India, the short-term problem is of financing the large CAD. The medium term objective should be to compress CAD to 2.5% of GDP and ensure price stability, the council said. Containing fiscal deficit within the budgeted estimate could be a challenge, it said adding discretionary expenditure budgeted may need to be compressed, and subsidies restructured.
Elsewhere, South Korea's Kospi index fell 0.49% and Taiwan's Taiex lost 0.69%. Indonesia's JKSE Composite rose 0.43%. Singapore's Straits Times Index sank 0.02% and Malaysia's KLSE Composite fell 0.09%.
Powered by Capital Market - Live News