Headline equities of the Asia Pacific market closed mostly higher in lacklustre trade on Thursday, 27 November 2014, on hopes that China government would loose monetary policy further to support the world's second-biggest economy stimulus in China after last week's surprise cut in interest rates.
Investors appeared to shrug off data showing weaker industrial profits, as the markets kept their upward momentum following an interest rate hike by the central bank late last week. That action has raised hopes China will take further measures to prevent growth from dropping below 7%.
China's industrial profit swung to a decrease in October, as net income for the top companies fell 2.1% from a year earlier, compared to a 0.4% increase for September profit, the National Bureau of Statistics data showed on Thursday. On a year-to-date basis, the companies' profit growth slowed to 6.7% in the January-October period, compared with a 7.9% rise in the first nine months, and a 10% increase in the first eight months, official data showed.
Many of the market participants opted sideline ahead of meeting of the Organisation of the Petroleum Exporting Countries (OPEC) later in the global day and as of the US Thanksgiving holiday. The US markets closed on Thursday and open for shortened trade on Friday.
Among Asian bourses
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Nikkei stocks weaken on strong yen
Japanese share market finished softer for second consecutive day, as profit booking continued after climbing a highest level since 2008 on Tuesday and as yen appreciation against the greenback. However, a record close on Wall Street overnight supported the Nikkei at lower levels. The Nikkei 225 Stock Average declined 0.78% to 17248.50.
The yen strengthened against the dollar and the euro Asian trade on Thursday in thin trade amid the U.S. Thanksgiving holiday. The dollar was at Y117.35 from Y117.72 late Wednesday in New York. The euro was at Y146.74 from Y147.24.
As the dollar eased to Y117.37, down from Y117.85 at the Wednesday Tokyo stock close, investors sold the forex-sensitive names, with Sharp Corp falling 2.4% and Sony Corp down 1.9%. Some tech exporters bucked the trend, however, supported by gains overnight for their U.S. shares, with Panasonic Corp. added 0.4% after its American depository shares (ADS) added 0.7%, while Toshiba Corp rose 1% after its ADS gained 0.9%. Shares of auto-parts maker
Takata Corp fell 4.8% on its regulatory troubles in the U.S., and Honda Motor Co shaved 3.3% on reports the company had recalled cars with Takata airbags in early 2002, two years earlier than previously thought. On the upside for automotive, however, SPK Corp. rallied 4.9% on reports the auto-parts trader would continue its practice of annual dividend hikes at least until fiscal 2019.
China-linked shares weakened on reports that China is expected to lower its economic growth target for the first time in three years. Citing Communist Party sources, the reports said China will cut its target by 50 basis points to around 7%. China's Central Economic Work Conference is slated to decide its 2015 growth target next month. Hitachi Construction Machinery fell 1.9%, while Kubota lost 2.5%.
Aussie market ends flat
Australian share market closed edge above neutral line, as gains from healthcare, consumer staple and the banks offset weak performances from the energy and mining sectors on sagging oil and iron ore prices. The S&P/ASX 200 index rose 4.70 points, or 0.09%, to 5400.90 and broader All Ordinaries index closed 1.10 points, or 0.02%, to 5381.40.
The major banks extended gain for second day after the RBA deputy governor Philip Lowe's comments on possible interest rate cut. Westpac Banking Corp rose 0.5% to A$33.23 and ANZ Banking Group climbed up 0.2% to A$32.45. Commonwealth Bank of Australia added 0.6% to A$81.50 and National Australia Bank rose 1.5% to A$32.93.
Banks of Queensland shares rose 1.5% to A$12.42 after acting chief executive Jon Sutton told investors at the bank's annual meeting home loan approvals had jumped 20% between September and October, thanks to brokers and an advertising campaign.
The healthcare stocks rallied with Medibank Private gaining 3.8% to A$2.18 on its third day as a listed company. Ramsay Health Care added 1.9% to a record A$54.50 while CSL gained 2.7%s to A$83.02. But Mayne Pharma Group lost 16% to A$0.63 after admitting it was facing headwinds with its franchise for the Doryx acne treatment in the United States.
Shares of mining and energy companies were biggest drag on the market, on sagging oil and iron ore prices. Brent crude slumped 1.5% to $US76.62 a barrel ahead of meeting of the Organisation of the Petroleum Exporting Countries (OPEC) later in the global day. The price of iron ore slumped a further 1.6% to $68.49 per tonne, as concerns about a slowdown in China continued to bubble. Among energy shares, Woodside Petroleum slipped 2.8% to A$38.47, Santos dropped 3.1% to $11.61, Origin Energy fell 3.2% to $13.17 and Oil Search lost 2.6% to $8.47. Among miners, Resources giant BHP declined 1.6% to A$32, while Rio Tinto, Australia's biggest iron ore miner, sank 0.6% to A$58.02. BC Iron shed 4.6% to A$0.56 and Atlas Iron lost 2.6% to A$0.19. EVOLUTION MINING dropped 6.6% to A$0.57. Fortescue Metals Group, the third-largest exporter of the steel-making commodity, bounced 2.5% to A$2.86.
Woolworths shares gained 2.2% to A$31.25, after the supermarket giant Chief executive Grant O'Brien reiterated the retailer's forecast of net profit growth between 4% and 7%.
Shanghai Composite extends gain for 6th day
Mainland China share market closed higher, registering advance for sixth consecutive session, on hopes that government would further loose monetary policy to support the world's second-biggest economy after last week's surprise cut in interest rates. The Shanghai Composite ended 26.14 points, or 1%, higher at 2630.49, a highest closing since August 2011. Full-day turnover was strong, with 364.08 billion shares changed hand worth of 338.96 billion yuan. The index has risen 7.3% in last six trading days.
The Chinese stocks continued rising following a surprise cut in interest rates at the end of last week -- the first such move in more than two years by China's central bank. The People's Bank of China trimmed its benchmark lending rate by 0.40% to 5.6%, and deposit rate was cut by a smaller 0.25% to 2.75%.
There is also The PBOC rumour that central bank could cut reserve-requirement ratios, which have remained unchanged at 20% for major banks and 18% for smaller banks since May 2012.
Shares of financial companies advanced the most in Shanghai on liquidity injection h after the PBOC lowered its lending and deposit rates last week sign that PBOC may consider cutting reserve-requirement ratios. New China Life Insurance Co. surged 10% to 42.38 yuan after company targets double-digit premium growth from newly added policies. Founder Securities Co. also jumped by 10% daily limit to 9.74 yuan. Bank of Communications added 4.3% to 4.85 yuan. China Everbright Bank rose 7.8% to 3.45 yuan.
Hang Seng falls 0.45% on profit booking
Hong Kong share market closed down, as investor booked profit made recently after weaker than expected Chinese industrial-profit data for October and as the arrests of dozens of pro-democracy protesters as police acted on court orders to clear barricades from major streets. The Hang Seng Index declined 107.7 points, or 0.45%, to 24004.28, off an intra-day high of 24228.11 and low of 23962.44. Turnover declined to HK$72.88 billion from HK$87.60 billion on Wednesday.
Shares in insurance companies extended gain for second day after Shanghai announced new policies to support the insurance sector and vowed to develop a modern insurance-service system and build the city into an international insurance center by 2020. China Life Insurance Co rose 0.8% to HK$27, PICC Property & Casualty Co 0.4% to HK$15.18, China Pacific Insurance Group Co 0.5% to HK$32.50, and Ping An Insurance Group Co 0.4% to HK$64.20.
Energy stocks closed down on the back of declining international crude prices. Cnooc fell 0.7% to HK$12, while China Petroleum & Chemical Corp slid 0.2% to HK$6.43 and PetroChina Co fell 0.7% to HK$8.70.
The tech sector suffered wide losses, with online-game developer Baioo Family Interactive falling 1.3% to HK$0.78, rival Forgame Holdings off 1% to HK$15.24 and software developer Kingsoft Corp lower by 1.3% to HK$18.76. Tencent Holdings slipped 0.5% to HK$125.10.
Sensex, Nifty ends higher in choppy trade
Indian stock marker provisionally closed slight higher in choppy trade as caution prevailed ahead the release of July-September economic growth data on Friday and the RBI policy review on Tuesday. The Sensex provisionally closed 0.19%, or 52.72 points, higher at 28438.91 points, while the National Stock Exchange's broader barometer 50-share CNX Nifty jumped 0.22%, or 18.45 points, to end at 8494.20 points.
The government will issue gross domestic product (GDP) data for the September quarter and fiscal deficit data for October on 28 November. The Reserve Bank of India (RBI) will announce its monetary policy on 2 December.
Shares of oil marketing companies rose after the price of Brent crude, the world benchmark for oil, touched $76.28 a barrel, the lowest since September 2010. Hindustan Petroleum Corp., Bharat Petroleum Corp. and Indian Oil Corp closed higher.
Shares of Jaypee group companies were lower after news reports said the enforcement directorate had registered a case against Jaiprakash Associates for money laundering and violations of environment laws. Jaiprakash Associates and Jaypee Infratech fell down.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.47% to 9165.31. South Korea KOSPI was up 0.06% to 1982.09. New Zealand's NZX50 fell 0.04% to 5455.38. Singapore's Straits Times index slipped 0.25% at 3340.96. Malaysia's KLCI declined 0.67% to 1829.91. Indonesia's Jakarta Composite index added 0.24% to 5145.31.
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