Asia Pacific share markets closed slight lower in range bound trade on Tuesday, January 08, 2013, as investors chose to take some cash off the table ahead of the third quarter earnings season. The retreat comes as investors prepare for quarterly earnings reports from the United States, the world's biggest economy with aluminum producer Alcoa set to report its Q4 results after the close of trading later in the global day.
Risk sentiments turned further downbeat after minutes from the U.S. Federal Reserve released last week highlighted increasing concerns over its highly monetary stimulus policy. Minutes from the Fed's December policy meeting showed some voting members of the Federal Open Market Committee were increasingly worried about the potential risks of the Fed's asset purchases on financial markets.
Lingering concerns about the U.S. debt ceiling issue also watered on risk sentiments after Republicans said they intend to use the debt ceiling as leverage to end the administration's massive spending addiction.
Tokyo stocks lost ground in today's trading, as the yen's rebound prompted investors to sell recently bought export-oriented shares such as Toyota Motor and other car makers along with financials such as Nomura Holdings and Aozora Bank. The Nikkei Stock Average declined 90.95 points from 10,599.01 to finish at 10,508.06.
Australian share market drifted lower, as investors to lock in profits after strong recent gains and on caution ahead of the start of the US earnings season. Despite gaining in the early session, the benchmark S&P/ASX200 fell 27.1 points to 4690.2, while the All Ordinaries Index finished the day's trade 25.8 points down from prior day closure to 4712.3. Banking stocks were among the biggest losers with shares in the Commonwealth Bank (CBA) falling 2% to A$61.37 after hitting record highs yesterday. Materials and resources players declined, with BHP Billiton eased by 0.8% to A$37.50 while Rio Tinto was off 1.2% to A$66.60.
Australia recorded a trade deficit of $2,637 million in November, the biggest deficit in 56 months (since April 2008). Imports outpaced export by A$2.64 billion, the biggest deficit since March 2008, compared with a revised A$2.44 billion shortfall in October, the Bureau of Statistics said in a report today. Exports rose 1% to A$24.7 billion, led by a 6% gain in metal ores and minerals. Imports advanced 2% to A$27.3 billion on a 6% increase in fuels and lubricants, the report showed.
New Zealand shares ended largely higher, led by high-yield dividend paying stocks. The benchmark NZX-50 index rose 0.1%. Heavyweight Telecom rallied 2.3% and Sky City Entertainment Group advanced 1.3%. Rural services firm PGG Wrightson rose 2.2% and Metlifecare soared 4.4%.
Mainland China market ended with a negative note, with the Shanghai Composite Index lost 9.29 points from 2,285.36 to finish session at 2,276.07, as investors took out some cash off the table after the market advanced to a four-month high yesterday. The market sank in a downward correction because the index reached an overbought level after it surged almost 20% from a four-year low of 1,949 on Dec. 3. Decline in domestic market further fueled by mounting jitters about funding pressure. Data from the China Securities Regulatory Commission showed that 32 firms filed for initial public offerings on Chinese bourses in the first week of 2013, bringing the number of companies seeking IPOs to 882. PricewaterhouseCoopers expected about 200 domestic IPOs in 2013, rising between 130 billion yuan to 150 billion yuan, up 20 to 39% from last year's 108.3 billion yuan, the accounting firm said in a report yesterday.
Hong Kong market declined in-line with a regional downtrend, as investors chose to take some cash off the table amidst overheating woes following sharp recent run-up that sent benchmark to 19-month highs. The benchmark Hang Seng Index was down 218.56 points to finish at 23,111.19, while Hang Seng China Enterprises Index dropped 258.92 points to 11,714.15.downtrend was led by energy, insurance and property shares after their strong performance recently. China Life Insurance Co. fell after CCB International Holdings cut its rating on the nation's largest insurer. Cnooc slid on reports it sent icebreakers to clear offshore oilfields amid the coldest winter in decades. China Resources Land sank on reports the government would maintain curbs in the property market.
South Korea stocks finished notably lower on concerns over a weak corporate earnings outlook. The benchmark Kospi Average fell 0.7, with index heavyweight Samsung Electronics retreated 1.3% after the company said it likely earned a quarterly operating profit of 8.8 trillion won in the fourth quarter of 2012.
Singapore shares declined, led by losses in commodity companies such as Wilmar International, as investors turned cautious ahead of earnings announcements for the last quarter of 2012. The benchmark Straits Times Index was down 0.4% at 3,205.52, extending Monday's losses.
Indian share market ended volatile trade modest higher, led by gains in defensive shares including index heavyweight ITC and as State Bank of India rose after BofA Merrill upgraded the stock. The Sensex provisionally ended up 0.26% and the Nifty also closed 0.24% higher.
Elsewhere, Malaysia's KLSE Composite index was down 0.3% and the Taiwan Weighted Average declined 0.4%. Benchmark index in Indonesia was up 0.1%.
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