Asia Pacific share market closed mixed on Wednesday, 09 March 2016, as risk sentiments hit by volatile commodities and oil prices and heavy slump in China's exports.
China trade data has become the seismic centre for concerns over the global economy. China's much worse-than-expected February trade data revived concerns about the economic health of the world's number two economy -- a key driver of global growth. Data from the China's General Administration of Customs showed that exports lost 20.6% from a year earlier to 821.7 billion yuan (US$126 billion) last month, while Imports cut 8% to 612.2 billion yuan. As a result, trade surplus in February landed at 209.4 billion yuan, a sharp reduction from the surplus of 406.2 billion yuan in January.
Market participants are awaiting for the outcome of the European Central Bank's board meeting on Thursday. There are expectation that the European Central Bank (ECB) to ease monetary policy further in its effort to boost low inflation and support economic recovery in the euro zone. Expectations are that the ECB will cut its deposit rate further into negative zone from current minus 0.3% and increase its bond-purchase program by euro 10 billion to euro 70 billion a month at a monetary policy meeting tomorrow, 10 March 2016.
Among Asian bourses
Nikkei drops for third day
Japan share market declined for third consecutive session, as risk sentiments pressured by weak lead from Wall Street overnight and the yen's ascent particularly against the dollar. However losses were limited ahead of the results of the European Central Bank's board meeting on Thursday. Every industry category on the main section except fishery, agriculture and forestry, and information and communication issues lost ground, led by marine transport, nonferrous metal, and iron and steel issues. The 225-issue Nikkei Stock Average ended down 140.95 points, or 0.84%, from Tuesday at 16642.20. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 15.39 points, or 1.14%, lower at 1332.33.
Major Japanese exporters struggled on the back of the yen's strength. A strong yen is a negative for exporters as it usually reduces their overseas profits when converted into local currency. Toyota slipped 0.2% to 5976 yen and Nissan, which counts China as a crucial market, lost 1.3% to 1,077 yen, while Honda dropped 1% to 3110 yen. China-linked industrial robot maker Fanuc slumped 1.42% to 17935 yen.
Shares of energy related stocks declined after oil prices extended Tuesday's slide on deep-rooted fears about a global oversupply. Energy explorer Inpex was off 2.60% to 919.1 yen, while JX Holdings dipped 1.53% to 456.6 yen.
NTT Docomo surged 2.8% after Mizuho Securities raised its investment rating on the telecommunications carrier. Peers KDDI and NTT were also upbeat.
Australia Market ends at fresh two-month high
Australian share market advanced to fresh two-month high, as gains in the banking stocks were more than offset by losses in energy and materials stocks. At the close, the benchmark S&P/ASX200 index rose 49.20 points, or 0.96%, at 5157.20, while the broader All Ordinaries index added 46.20 points, or 0.89%, to 5215.70.
Shares of major banks enjoyed strength. ANZ Banking Group advanced 2% to A$25.48, Westpac 2.3% to A$32.53, Commonwealth Bank 1.1% to A$76.31 and National Australia Bank 2.6% to A$27.55.
Material and resources and energy stocks extended losses, as investors continued to fret over soft Chinese trade figures. Mining giant BHP Billiton declined 1.9% to A$17.86 and Rio Tinto lost 2.1% to A$44.30. Fortescue Metals Group ended down 2.9% to A$2.71. Woodside Petroleum slipped 2.7% to A$26.83, Santos 2.6% to A$3.79 and Origin Energy 1.2% to A$5.02.
China Market ends down
Mainland China stock market declined for the first time in seven straight sessions, on fresh concerns over China's economy after weaker-than-expected trade data. The benchmark Shanghai Composite Index slid 1.34%, or 38.83 points, to 2,862.56, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 2.12%, or 37.10 points, to 1,713.44. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, fell 35.76 points, or 1.15%, to 3071.91.
Shares of steel producers plunged after reports that the governor of Hebei, a northern province near Beijing, said the province aims to close 60% of its steel factories by 2020. Shanghai Hualian Mining was down 8.2%, and Shandong Jinling Mining (000655.SZ) lost 8%.
Coal producers led declines for energy companies, with Yanzhou Coal Mining Co. and Shanxi Lu'an Environmental Energy Development Co. sliding at least 7%. PetroChina Co., another favorite of state funds buying, dropped 0.2%.
Shares of property developers were also lower after Pan Gongsheng, vice governor of the People's Bank of China, said the central bank plans to tighten regulation of financing that had helped fuel a housing boom in top-tier cities.
Hong Kong Stocks extend losses
The Hong Kong stock market declined, pressure by a drop on Wall Street overnight and weaker oil prices after disappointing Chinese trade data. The benchmark Hang Seng Index declined 15.32 points, or 0.08%, to 19996.26 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 63.74 points, or 0.75%, to 8441.48 points. Turnover reduced to HK$56.9 billion from HK$62.6 billion on Tuesday.
Shares of Cathay Pacific (00293) soared 5% to HK$14.04 after it reported 2015 earnings growth of 90%. It was the top blue-chip winner. Wharf (00004) also reported its earnings during lunch hour, with 2015 net falling 55% to HK$16 billion. But it still put on 1% to HK$43.5.
Mainland developers were mixed after S&P forecast that China's property sales will grow 5%-10% for the year. COLI (00688) and CR Land (01109) gained 1% and 2% to HK$19.84 and HK$25.3 respectively. Evergrande (03333) slipped 2% to HK$5.74.
Commodity markets retreated dramatically overnight, with iron ore price plunging 8.8%. Vale (06210) dived 14% to HK$30.45. Glencore (00805) also down 13% to HK$15.56. Oils majors were also lower, with both CNOOC (00883) and PetroChina (00857) retreating 2% to HK$9.03 and HK$5.25.
Sensex, Nifty attain highest closing level in more than five weeks
Gains in stocks of private sector banks, cement firms and index heavyweights Infosys and Reliance Industries (RIL) led upmove for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 134.73 points or 0.55% to settle at 24,793.96. The Nifty rose 46.50 points or 0.62% to settle at 7,531.80.
Metal and mining stocks edged lower as global commodity prices fell after a recent rebound. Maruti Suzuki India rose after the company announced the launch of its first compact urban sport utility vehicle (SUV) Vitara Brezza. Container Corporation of India declined after the floor price for the offer for sale (OFS) for divestment of Government of India's (GoI) 5% stake in the company was set at a discount to previous session's closing price. Hindustan Unilever rose after the company announced that the company and Pond's HLL ex-Mercury Employees Welfare Association, representing the ex-employees of the former thermometer factory in Kodaikanal, have reached a settlement with regard to dispute over economic rehabilitation after closure of this factory.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.2% to 6457.26. Taiwan's Taiex index shed 0.4% to 8634.11. South Korea's KOPSI rose 0.4% to 1952.95. Malaysia's KLCI fell 0.1% to 1686.35. Singapore's Straits Times index added 1.1% at 2810.43. Indonesia's Jakarta Composite index sank 0.4% to 4811.04.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
