The decline in the regional market came as investors withdrew some profit off the table following negative lead from Wall Street overnight. U.S. shares declined for the first time in three sessions on Tuesday with the Dow Jones Industrial Average closing at its lowest level in almost a month.
Meanwhile, caution ahead of China's preliminary manufacturing data for this month also weighed on sentiment. Preliminary manufacturing data for this month due from HSBC Holdings Plc and Markit Economics tomorrow is expected to signal a fifth month of contraction.
Investors also await the release of minutes of Fed meet later today to get some clues on future of the central bank's stimulus programme and its assessment of the US economy.
Among Asian bourses- Australian share market finished the session marginal higher after recouping intraday losses, supported by gains in energy and consumer staples stocks and defensive player Telstra. The benchmark S&P/ASX200 was higher by 4.20 points to 5424.60 and the broader All Ordinaries rose by 2.20 points to 5403.90.
The Sydney market opened lower today, on tracking negative cues from global markets. Meanwhile, concerns about the impact a weaker iron ore price on the local economy also compelled investors to sell riskier assets. However, with gains in Woodside Petroleum on news that the company has pulled out of the massive Leviathan project, coupled with bounce in Telstra and Coca-Cola Amatil helped the market to finish edge above the neutral line.
Shares in energy sectors went up, with Woodside Petroleum leading the rally, up by 0.8% to A$41.23 as investors react positively to news that the company has pulled out of the massive Leviathan project. The company has terminated its agreement to take a stake in a $US2.7 billion natural gas project in Israel, saying it has failed to reach a commercially acceptable outcome. Among other energy stocks, Origin Energy rose by 0.2% to A$14.95, Santos 0.6% to A$14.03 and Oil Search 1.4% to A$9.14. Whitehaven Coal advanced 1.4% to A$1.485.
Shares of consumer staple sector closed sharp higher, with Treasury Wine climbing 5.6% to A$5.07, adding to Tuesday's 17.9% surge, on continuing takeover speculation after rejecting a A$4.70/share, A$3.05 billion takeover bid by a US investment firm. Coca Cola Amatil was up 4% to A$9.92.
Materials & resources stocks declined in tandem with drop in base metal prices on the London Metal Exchange on Tuesday. Tin was the worst performer down 1.7%, while other metals fell between 0.2%-1.2%. Among miners, Fortescue Metals was down 2.4% to A$4.43. Rio Tinto was down 1.1% to A$59.40, while rival BHP Billiton shed 0.8% to A$37.17.
Telstra continued its recent good run, rising 1.1% to A$5.36, a nine year high, supported by strong demand for its dividend payments and after announcement the company aims to create one of the world's largest Wi-Fi networks, with about 2 million public hotspots around the country.
In New Zealand, equities on the New Zealand stock market plummeted today to a month low as investors await evidence of earnings growth that would justify a fully priced bourse. The benchmark NZX50 index fell 26.318 points, or 0.5%, to 5108.573.
Fisher & Paykel Healthcare fell ahead of reporting tomorrow, while Ryman Healthcare declined after earnings this week met expectations.
Kiwi Income Property Trust, which posted a 7.8% drop in earnings yesterday, was unchanged at 1.16 after Craigs Investment Partners downgraded the stock to a 'hold' from a 'buy' on forecasted stalling earnings.
Trade Me Group, the online auction site, was the day's best performer, rising 2.9% to $3.61 after dropping to a two-year low yesterday.
In Japan, Japanese share market declined today, dragged down on tracking negative cues from Wall Street overnight. Meanwhile, yen appreciation against major currency rival after the Bank of Japan (BOJ) held off fresh easing measures intensified selling pressure. The benchmark Nikkei 225 index eased 0.24% to 14042.17, while the Topix index of all first-section shares fell 0.29% to 1150.05.
The yen's strength against the dollar played a major factor behind today's decline. The dollar was trading at 101.18 yen in Tokyo trade after the BOJ announcement, down from around the 101.30 mark before the news and 101.32 yen in New York on Tuesday. The stronger yen makes exporters less competitive abroad and erodes repatriated profits. Meanwhile the deflationary effect of a stronger yen on banks, insurers, brokerages, and real estate developers hurts the values of their asset portfolios.
The Bank of Japan kept monetary policy steady today and revised up its assessment on capital expenditure, signalling its confidence that its aggressive monetary stimulus is helping broaden a recovery in the world's third-largest economy. As expected, the central bank voted unanimously to maintain its pledge of increasing base money, its key policy gauge, at an annual pace of 60 trillion to 70 trillion yen. The bank kept its view on the economy unchanged to say it continues to recover moderately as a trend.
Japanese exporters were major drag on the market today, with Mazda down by 2.4% to 411 yen. Canon Inc., a camera maker that gets 81% of its revenue overseas, lost 1.3% to 3,296 yen.
Energy stocks closed higher, buoyed by rise in crude oil prices due to on-going supply disruptions in Libya and after data showed crude inventories slid in the US. Inpex Corp. added 2.9% to 1,472 yen. Japan Petroleum Exploration Co. jumped 8% to 4,200 yen after SMBC Nikko Securities Inc raised the company's rating to outperform from neutral.
Nihon Enterprise plunged 8.8% to 217 yen, the lowest close since Oct. 23, after the company cut its full-year net income forecast by 27% to 415 million yen.
Shares of Komatsu and Hitachi Construction Machinery fell 3.1% and 3.5% to 2170 yen and 1811 yen, respectively, on sympathy selling after their U.S. counterpart Caterpillar reported lower demand in heavy machines overnight in its January-April quarterly earnings report. The Caterpillar reported global sales fell 13% in the three months through April from the year-earlier period.
The finance ministry data showed the trade deficit shrank 7.8% on-year in April, with Japan logging a shortfall of 808.9 billion yen against the year-before deficit of 877.4 billion yen, as a sales tax hike weighed on importsdenting demand for foreign fruit, lobsters and crude oilwhile shipments of goods to overseas markets picked up pace. Exports climbed 5.1% to 6.07 trillion yen on robust shipments of automobiles and memory chips. Imports rose 3.4% to 6.88 trillion yen, a much slower rate than high-paced rises seen over more than a year.
In China, Mainland China share market advanced for second consecutive session, on the back of rise in coal stocks after a news report the NDRC plans to establish two or three national markets. The benchmark Shanghai Composite finished 16.83 points higher at 2024.95, on turnover of 48.41 billion yuan.
Chinese share market opened weaker on tracking negative global cues and concern that the local economy is slowing. However, the benchmark indices recouped early losses and traded above the neutral line throughout the session as speculation that state-linked investors are buying equities. Meanwhile, bargain buying was also supported by calming concern about bulk of new share sale after the government announced fewer initial public offerings than market estimation.
The China Securities Regulatory Commission (CSRC) announced plans to allow about 100 initial public offerings (IPOs) from the beginning of June to the end of the year at a balanced pace. The move came as China looks to revamp its IPO rules, including relaxing the regulations for listings and share issues on a NASDAQ-style stock board, to support the growth of cash-short smaller companies and the continued outperformance of the ChiNext market over blue chip stocks.
Shares of energy companies climbed the most in Chinese market with China Petroleum & Chemical Corp led rally, up 2.2% to 5.11 yuan after the Shanghai Securities News reported the refiner may open its shale gas business to private investment. PetroChina Co rose 0.5% to 7.67 yuan. Yanzhou Coal Mining Co rose 2.5% to 7.08 yuan
Shares in software firms climbed up sharply due to reduced foreign competition after China banned government use of Windows 8, Microsoft Corp's latest operating system. Shanghai Amarsoft Information & Technology Co rose 10% daily limit to 35.29 yuan.
In Hong Kong, shares in city's market finished the session marginally higher after moving zigzag between boundary line, with gains by Lenovo Group on solid earnings offset by drops for HSBC and subway train operator MTR Corp. The benchmark Hang Seng Index was up 1.84 points to 22836.52 on turnover of HK$51.21 billion.
Chinese banks listed in Hong Kong were higher after local governments are allowed to issue bonds to finance their own debts. ICBC (01398), BOC (03988), CCB (00939) and ABC (01288) added 1.2% to 1.4%. CM Bank (03968), CITIC Bank (00998) and Minsheng Bank (01988) rose 1%, 1.3% and 1.4% respectively.
Shares of energy companies climbed on reports China may raise gasoline and diesel prices on Friday. Both PetroChina (00857) and Sinopec (00386) were higher, rising 0.2% and 2.2% to HK$9.3 and HK$7.13 respectively. CNOOC (00883) gained 1.4% to HK$13.42. Kunlun Energy (00135) inched up 1% to HK$12.22.
Lenovo Group shares rose 3.4% to HK$ after the world's fourth-largest smartphone vendor, posted a forecast-matching $817.2 million net profit for fiscal 2013/14.
Great Wall Motor Co. shares advanced 3.5% to HK$29.65, on the top of yesterday's 2.1% gain after the automaker late Monday announced a deal to set up a production base in Russia.
HSBC Holdings declined 1.1% to HK$80.80 on concern over its exposure to potential fines as it was accused by European Union antitrust regulators of rigging financial benchmarks linked to the euro.
In India, key benchmark indices declined for the first time in five days as blue-chips fell, a day after foreign investors turned net sellers for the first time in about a month. Investors took the opportunity to book profits in recent outperformers, especially in domestic-oriented sectors that led a powerful rally in anticipation of a victory by the Bharatiya Janata Party (BJP) and its prime ministerial candidate Narendra Modi.
The 30-share BSE index Sensex, which had gained over 562 points in the past four sessions after the BJP-led NDA swept the polls, ended at 24,298.02, down 0.32% or 78.86 points. Similarly, the 50-share NSE index National Stock Exchange index Nifty ended at 7,252.90, down 0.31% or 22.6 points.
Weakness in heavyweight banking and capital goods shares was instrumental in pulling benchmarks- Sensex and Nifty lower. Larsen & Toubro, State Bank of India, Axis Bank, ICICI Bank and HDFC Bank collectively pulled the benchmark Sensex 93 points lower.
A fall in rupee for a second straight day helped beaten down IT shares recoup some of their losses amid investors' frenzy to dump software stocks in favour of cyclical such as banks and capital goods on hopes of a turnaround in the economy after pro-business BJP party was elected to power.
Infosys, TCS and HCL Technologies ended 1-2% higher due to weakness in the rupee, after falling significantly on Monday when rupee touched its 11-month high levels.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index fell 0.29%. South Korea's KOSPI index was down 0.15%. New Zealand's NZX50 fell 0.51%. Singapore's Straits Times index fell 0.11%. Malaysia's KLSE Composite dropped 0.22%.
Indonesia's Jakarta Composite Index rose 0.29% as the market stabilized following a 2.4% fall in Jakarta after an alliance between one of the country's largest political parties and presidential contender Prabowo Subianto increased the chance of a tight race in the coming Indonesian election.
Thailand's SET rebounded 0.6% after closing down over 1% on Tuesday after the Thai army declared martial law. After the military declared nation-wide martial law on Tuesday, the country's army chief met with rival political groups, encouraging them to agree to new elections this year and put an end to protests that have consumed the country since November.
Powered by Capital Market - Live News
