Regional bourses climbed sharply in recent sessions, fuelled by stronger than expected Chinese trade data and JPMorgan Chase & Co. prediction Chinese market would rally as much as 20% within weeks. Global investors were also cheered after Dr Yellen pledged in a highly anticipated speech to continue taking a measured approach to the process of reducing the central bank's monthly stimulus - currently $65 billion per month down from $85 billion per month in December.
Among Asian bourses, Japan's shares stumbled, dragging the benchmark Nikkei Stock Average 265.32 points from prior day to provisionally finish at 14534.74. The profit taking pressured on the market amid absence of catalysts from US and European markets last night and yen appreciation against the US dollar.
Asahi Group Holdings fell 4.5% to 2,692 yen after the company forecasted group net profit to amount to 67 billion yen for the fiscal year ending December 2014, undershooting the market forecast of 75 billion yen.
Seiko Holdings Corp. shares tanked 10.59% to 473 yen after the electronics-devices maker forecast fiscal year profit of 9 billion yen which is below expectations of 12 billion yen in profit.
Sony Corp. shares slipped 2% to 1729 yen, following a Nikkei newspaper report that Sony may double its supply of camera sensors to Apple Inc.
In Australia, Australian stock market finished the session marginally lower, snapping five sessions of winning streak, as weak jobs figures triggered profit taking. The benchmark S&P/ASX 200 index dropped 2 points to provisionally finish at 5308.10, while the broader All Ordinaries sank 1.10 points to 5318.70.
The risk sentiments in the Sydney market turned bearish after Australian Bureau of Statistics (ABS) data indicated domestic unemployment rate hit its highest point in nearly a decade. The Australian Bureau of Statistics (ABS) said on Thursday that Australia's seasonally adjusted unemployment rate increased by 0.1 percentage points to 6.0% in January. The ABS reported the number of people employed decreased by 3,700 to 11,459,500 in January. The decrease in employment was due to decreased full-time employment, down 7,100 people to 7,953,000, offset by increased part-time employment, up 3,400 to 3,506,500. The number of people unemployed increased by 16,600 people to 728,600 in January, the ABS reported.
Shares of Australian financials companies finished weaker, with National Australia Bank down by 0.4% to A$34.01, Westpac Banking Corp down 0.2% to A$32.44 and Commonwealth Bank down 0.6% to A$75.75. Stocks of bourse operator ASX rose 1.6% to A$36.25 after lifting its 1H profit by almost 11% to A$189.6 million thanks to a large number of listings and improved market activity. Shareholders will receive a higher interim dividend of 88.2c per share to be paid on 26th March.
Telecommunications was the best-performing sector in Sydney, up 0.8%, with Telstra Corp up 0.8% to A$5.15 after reporting a 9.7% increase in first-half net profit to A$1.7 billion and increase in interim dividend for the first time in almost a decade to 14.5 cents per share. Singapore Telecommunications, which owns Telstra's main competitor Optus, added 1.6% to $3.14 after announcing profit for Optus jumped 41.4%, despite lower revenue and weakness in mobile phone subscriptions.
Qantas Airways climbed up 6.3% to A$1.19 after Federal Treasurer Joe Hockey flagged the government was considering providing assistance as the company tries to shore up its credit rating.
In New Zealand, equities on the New Zealand stock market climbed, alongside most of the regional peers that held steady, as investors were cautiously optimistic after upbeat trade data from China eased concerns over the global economy and helped take some of the sting off the recent emerging markets turmoil. Investors look ahead to results from jeweller Michael Hill International and Vital Healthcare Property Trust tomorrow. By the provisional closing, the NZX 50 Index rose 3.556 points or 0.1% to 4873.528. Within the index, 23 stocks rose, 22 fell and five were unchanged.
Auckland International Airport declined 0.5% to $3.62, after the Commerce Commission reaffirmed that Christchurch International Airport is setting prices too high, reminding investors of the threat of regulation.
In China, key benchmark indices of the Mainland China stock market declined today, registering first fall in five consecutive sessions, as profit taking triggered across the board on speculation a recent rally were excessive. The benchmark Shanghai Composite Index dropped 11.55 points to finish at 2098.40 while the CSI 300 Index declined 11.70 points to 2279.55.
The selloff pressure dominated across the Mainland bourses, with shares of technology and healthcare companies leading the downfall. Meanwhile, shares of retailers, industrials, energy, utilities and consumer goods counter also suffered notable losses.
Shares of technology companies declined the most in Mainland China market amid profit taking after sharp rally last year. Yonyou Software plunged 8.1% to 19.03 yuan, paring gains to 85% over the past year. Leshi Internet Information & Technology (Beijing) Co. plunged 6.6%.
Shares of coal miners declined after the Economic Information Daily reported today, citing Wind data, that sixteen Chinese listed coal companies are reporting losses or declines in profits for 2013. Seventeen of 27 listed coal companies have issued profit alerts or preliminary earnings reports as of yesterday, according to the newspaper. Shenhua Energy dropped 1% to 14.04 yuan. China Coal Energy Co., the nation's second-largest producer, declined 1.1%.
Realty shares also finished weaker, with Poly Real Estate leading declines for developers, retreating 2% to 7.85 yuan after January contracted sales fell 3%. Gemdale Corp. retreated 2.6% to 6.06 yuan.
The People's Bank of China skipped another open market operation on Thursday, capping a week in which it has allowed the 450 billion yuan in liquidity added during the lead up to the Chinese New Year holiday to flow out. Tuesday's decision to skip the operation meant 330 billion yuan in reverse repo transactions were allowed to unwind, while today's sees another 120 billion yuan leaving the system. The 450 billion yuan in transactions allowed unwinding this week mark the biggest weekly drain since the post-holiday period 2013. The bank added a net 75 billion yuan in the week before the holiday.
In Hong Kong, shares in city's market snapped two days of rising streak, as profit booking triggered on catching weak cues from Mainland China bourses and Wall Street overnight. The benchmark Hang Seng Index provisionally finished 120.26 points down at 22165.53. The benchmark index opened 11 points lower and saw its losses widen. It had fallen 190 points at one stage before recovering part of its losses.
Among the HK 50 blue chips, 36 stocks finished down while remaining 14 stocks ended higher. China Coal Energy Co declined 3.9% to HK$3.92 on its removal from the HSI family, while Want Want China Holdings rose 6.5% to HK$11.16 after Goldman Sachs hiked its target price, making themselves the biggest blue-chip loser and gainer. Elsewhere, HSBC (00005) edged up 0.4% to HK$81.35. Tencent (00700) nudged up 0.4% to HK$540. Mengniu Dairy (02319) jumped 3.8% to HK$39.4 after being added into the HSI family. BYD (01211) also soared 6% to HK$42.15 on its joining the HSCEI.
In Singapore, Singapore stocks edged up for a sixth session amid a mixed outing for Asian markets. The benchmark Strait Times index added 4.45 points or 0.15% to close at 3039.90. Singapore Telecommunications gained almost 2% after better-than-expected quarter earnings.
In Indonesia, shares in Jakarta market finished edge lower after trimming most of intraday losses, thanks to central bank decision to keep interest rate steady. Jakarta's Composite Index closed down 0.1%, with interest rate sensitive banks recouping early losses and ending slightly higher.
Indonesia's central bank kept its benchmark reference rate unchanged at 7.5% and said its current-account deficit had narrowed sharply in the fourth quarter.
In India, key benchmark indices closed weaker as weakness in Asian and European stocks dampened investors' sentiment. The S&P BSE Sensex fell 255.14 points or 1.25% to 20,193.35, its lowest closing level since 8 October 2013.
Cipla slumped on weak Q3 results. Coal India dropped on weak Q3 results. Bank stocks fell across the board after latest data announced after market hours on Wednesday, 12 February 2014 showed that inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 eased to 24-month low level. Sun Pharmaceutical Industries edged higher on strong Q3 results. Hindalco Industries dropped on weak Q3 results.
Indian Oil Corporation (IOC) tumbled 5.07% to Rs 244.10. IOC reported net loss of Rs 961.45 crore in Q3 December 2013 as compared to net profit of Rs 3331.96 crore in Q3 December 2012. Total income rose 1.44% to Rs 119354.01 crore in Q3 December 2013 over Q3 December 2012. The Q3 was announced after market hours today, 13 February 2014.
Hindalco Industries dropped 3.19% to Rs 100.20 on weak Q3 results. The company's net profit declined 23.04% to Rs 334 crore on 5.83% growth in revenue from operations to Rs 7273 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during trading hours today, 13 February 2014.
Sun Pharmaceutical Industries rose 0.60% to Rs 614.70 on strong Q3 results. The company's consolidated net profit surged 73.73% to Rs 1531.09 crore on 51.59% increase in total income to Rs 4446.82 crore in Q3 December 2013 over Q3 December 2012. Sun Pharmaceutical Industries declared the Q3 result during market hours today, 13 February 2014.
Coal India dropped 3.39% to Rs 260.75 on weak Q3 results. The company's consolidated net profit fell 11.39% to Rs 3894.09 crore on 2.91% fall in total income to Rs 19110.74 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Wednesday, 12 February 2014. Coal India's raw coal production rose to 118.71 million tonne (MT) in Q3 December 2013 from 117.37 MT in Q3 December 2012. Raw coal offtake fell to 117.16 MT in Q3 December 2013 from 120.45 MT in Q3 December 2012.
Elsewhere in the Asia Pacific region, South Korea's KOSPI index eased 0.46%. Taiwan's Taiex index shed 0.51%. Malaysia's KLSE Composite dropped 0.47%.
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