Chinese trade data continued to weigh on regional stocks for the second straight day. Sharp falls in China's import figures issued on Tuesday rekindled concerns about the strength of the country's domestic demand and its side effect on the global economy.
The General Administration of Customs data released on Tuesday that showed the country's exports in the month fell 1.1% year on year to 1.3 trillion yuan (US$205 billion) in September, following declines of 6.1% in August and 8.9% in July. Imports, meanwhile, slumped 17.7% in September to 923.9 billion yuan, after sliding 14.3% in August, mostly as a result of weak domestic demand and depressed commodity prices. The combined effect of the two figures meant the trade surplus of the world's second-largest economy in September rose about 2.2% to 376.2 billion yuan.
Adding to those concerns was China's latest consumer price index, which Wednesday showed that inflation moderated in September to 1.6%, slower than a 2% year-over-year rise in August. Other figures overnight also pointed to slower global growth. A survey of financial analysts and investors also showed the German economy, Europe's largest, weakened in October.
Meanwhile, a softer outlook for the global economy led the Monetary Authority of Singapore to ease its currency policy earlier in the day. The central bank said it would target a slower appreciation of the Singapore dollar against a basket of currencies. The city-state uses a managed exchange rate--rather than interest rates--as its main monetary policy tool. Separately, Singapore's trade ministry reported the nation's economy grew in the third quarter, narrowly avoiding a fall into a technical recession, defined as two consecutive quarters of shrinking growth. Gross domestic product rose 0.1% on year on a seasonally adjusted basis, compared with a 2.5% contraction in the second quarter.
Among Asian bourses
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Australia market logs second straight loss
The Australian share market ended down for third consecutive session amid weak lead from Wall Street overnight, drop in commodity prices, and deepening worries about in the world's second-largest economy after disappointing economic data from China. Most of the ASX industry blue-chip stocks slid, with energy and material companies being major losers. The benchmark S&P/ASX 200 index declined 5.60 points, or 0.11%, to 5197.30 points, while the broader All Ordinaries index sank 4.20 points, or 0.08%, to 5230.40 points.
Shares of resources and oil explorer companies were top losers in the Sydney financial market, after crude oil prices declined further overnight. Benchmark Brent crude lost 1.2% to $49.24 a barrel overnight after a heavy 5.3% fall on Monday. Among energy stocks, Australia's biggest oil producer Woodside Petroleum lost 1.6% to A$30.86. Santos, meanwhile, dropped 5.2% to A$5.18, and Origin sank 7.4% to A$5.49. Oil Search also dropped, by 2.9% to A$7.14. DrillSearch fell 1.6% to A$0.60, while AWE was down 4.8% to A$0.70. Among top miners, BHP Billiton lost 0.5% to A$24.68 and Rio Tinto sank 0.7% to A$53.03. Iron-ore producer Fortescue Metals Group slipped 1.4% to A$2.16.
Domino's Pizza climbed up 6.9% to A$42.52, after announcing it was scouting the world for aquisitions after agreeing the $55 million purchase of France's Pizza Sprint.
Nikkei extends losses on global growth woes
The Japanese share market declined for second straight day, as risk aversion selloff triggered on tracking soft lead from Wall Street overnight and yen appreciation against the dollar. Meanwhile selloff pressure intensified on deepening concerns about Chinese economy after slew of disappointing data. Total 32 out of 33 TSE first-section sector sub-indexes ended down, with Iron & Steel, Rubber Products, Glass & Ceramics Products, Machinery, Metal Products, Nonferrous Metals, Mining, Marine Transportation, and Banks issues being major losers. The Nikkei Stock Average dropped 343.74 points, or 1.9%, to end at 17891 points, meanwhile the broader Topix index declined 2.15%, or 32.30points, to 1470.83 at the close.
Shares of steel, machinery and shipping sectors fell the most in Tokyo amid deepening concerns about China economic slowdown Nippon Steel & Sumitomo Metal Corp. fell 5.4% to 2,377.5 yen. Factory automation machinery maker Fanuc Corp. (6954.TO) dropped 3.5% to 19395 yen and shipping firm Mitsui O.S.K. Lines plunged 4% to 308 yen.
Shares of energy-linked companies fell amid supply glut concerns. Crude oil prices fell on Tuesday after the International Energy Agency forecasted oil demand to slow next year. Mitsubishi Corp. fell 2.7% to 2171 yen and oil explorer Inpex Corp. shed 2.7% to 1195 yen.
Nikon Corp. dropped 5.3% to 1494 yen after a report the camera maker will post a 27% drop in operating profit in the six months ended September.
Silicon wafer maker Sumco Corp. slumped 7.7% to 1169 yen after Mizuho Financial Group Inc. cut its share price target by 12% and kept its underperform rating on the stock.
Bucking the trend, Movie producer Toho Co. gained 3.9% to 3010 yen after boosting its operating profit forecast by 9% to 35 billion yen.
China market falls after soft inflation data
The Mainland China's stock market finished down, registering first fall six consecutive sessions, as investors booked part profit amid concerns about the health of the world's second-biggest economy after softer than expected inflation data. However losses were limited amid hopes for further stimulus to support ailing economy. The Shanghai Composite Index eased 0.93%, or 30.79 points, to close at 3262.44 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, descended 1.2%, or 22.97 points, to 1884.16. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, de-grew 1.58%, or 37.04 points, to close at 2305.
China's consumer price index (CPI), the main gauge of inflation, rose 1.6% in September from a year earlier, following August's 2% gain, according to the National Bureau of Statistics (NBS). On a monthly basis, consumer prices in September rose 0.1%. In the first nine months, CPI expanded 1.4% year on year. The producer price index, which measures wholesale inflation, fell 5.9%, after a 5.9% fall in the previous month. The PPI, which measures wholesale prices, clocked its 43rd straight month of decline. The government aims to keep consumer inflation at around 3% for 2015.
Shares of consumer-discretionary and technology companies slumped heavily on Beijing amid profit booking. Leshi Internet, the biggest mainland-listed Internet video provider, lost 4.5%. Great Wall Motor, the largest maker of SUVs, tumbled 7.4% and FAW Car Co. slid 5% after the China auto association predicted sales to grow at the slowest pace in four years as consumers canceled or postponed purchases amid the economic slowdown.
Xiamen Tungsten Co. jumped by the 10% daily limit after the company said it will cap rare-earth product output at about 90% of the 2015 quotas set by the government.
Hong Kong market falls 0.7%
Hong Kong stock market declined on tracking softer lead from the Wall Street overnight and weak economic indicators from China. The benchmark index opened 201 points lower and fell as much as 243 points as investors worried about China's deflation risks. The Hang Seng Index declined 160.55 points, or 0.71%, to 22439.91 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, slid 103.27 points, or 1%, to 10334.42 points. Turnover reduced to HK$72.3 billion from HK$79.9 billion on Tuesday.
Shares of property developers inclined on news of divided views inside the US Fed regarding rate hike in 2015. Sino Land (00083), New World (00017) and Hang Lung Properties (00101) rose between 1% and 2% to HK$12.46, HK$8.15 and HK$19.12 respectively.
Mengniu Dairy (02319) retreated 4% to HK$14.72, after investment research houses have adjusted their target price for the company after its bonus issue.
Great Wall Motor (02333) dipped 3% to HK$9.76 after UBS Research lowered its target price to HK$12. Brilliance China (01114) sank 5% to HK$10.32.
Shares of China solar counters advanced as investors bought the planned environmental theme into China's 13th Five Year Plan. China's MITI also said it aims at pushing merger and restructuring. GCL Newenergy (00451) and Singyes Solar (00750) soared 9% to HK$0.62 and HK$6.93. SFCE (01165) also shot up 8% to hK$2.63.
Indian market declines for the third straight day
Losses for TCS and Hindustan Unilever (HUL) after the announcement of second quarter earnings pulled key benchmark indices lower. The barometer index, the S&P BSE Sensex, fell 69.31 points or 0.26% to 26,777.22, as per the provisional closing data. The 50-unit CNX Nifty dropped 23.80 points or 0.29% at 8,107.90, as per the provisional closing data.
TCS dropped after the company's top management indicated at a post Q2 result conference call that the company continues to face issues in its UK based business process outsourcing subsidiary Diligenta and in the Japan region and expects it to continue over the next two quarters at least. HUL dropped after reporting a muted growth in bottom line after adjusting for exceptional items. TCS' consolidated net profit rose 6.5% to Rs 6085 crore 5.8% growth in revenue to Rs 27165 crore in Q2 September 2015 over Q1 June 2015. The result was announced after market hours yesterday, 13 October 2015. In a conference call, TCS said that similar to the trend seen in the previous years, Q3 December 2015 is expected to be weak on account of fewer working days and furloughs. The extent of the impact of furloughs will be known fully by mid-November, TCS said.
Shares of state-run coal mining giant Coal India (CIL) were off 1.72% at Rs 334.65 after the Union Cabinet approved the recommendations of the Committee of Secretaries to regularize the 2007 pay revision implemented by CIL with effect from 1 January 2007 in the loss making subsidiaries. This is being allowed as a special dispensation to CIL. The Cabinet also approved the payment of performance related pay (PRP) to executives and non-unionised supervisors of CIL and its subsidiaries. The payment would be out of the corpus created by pooling the profits of CIL subsidiary companies, duly setting off the losses of the loss making subsidiaries and stand-alone profits of CIL, excluding dividends received from its subsidiary companies.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.5% to 8522.51. South Korea's KOPSI lost 0.5% to 2009.55. New Zealand's NZX50 climbed up 0.4% to 5727.13. Singapore's Straits Times index fell 0.03% at 2983.92. Indonesia and Malaysia financial market closed for public holiday.
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