The Wall Street benchmark, which tends to set the tone for most bourses, fell on Wednesday to its lowest level since April 12, amid a lacklustre corporate earnings season and after some mixed data left investors unsure about the health of the global economy and prospects for US monetary policy.In particular, a relatively soft ADP report on private sector employment just 156,000 positions were created in April is seen boding ill for the official monthly US labour data due at the end of the week.
China services Purchasing Managers' Index came in at 51.8 in April, down from 52.2 a month ago, survey data published by Markit showed on Thursday. A score above 50 indicates expansion but the latest reading signals a slowdown in growth. Private sector activity expanded for the second straight month in April driven by services, while output broadly stagnated at manufacturers. The Caixin composite output index fell to 50.8 in April from 51.3 in March.
Among Asian bourses
Australia Market closes in green
Australian share market ended slight higher, as gains in energy, industrials, and financial stocks were more than offset elsewhere. At close of trade, the benchmark S&P/ASX 200 rose 8 points, or 0.15%, to 5279.10. The broader All Ordinaries grew 8.90 points, or 0.17%, to 5344.50.
Shares of energy companies closed strongly after global oil prices held relatively steady for the first time in four sessions. US Nymex crude added 0.3% to $US43.78, although global benchmark Brent crude eased 0.7% to $US44.62. Santos lifted 1.43% to A$4.26 and Woodside inched up 0.0.52% to A$27.24.
The banks and financial ended stronger, with Westpac Banking Corp up 0.6% to A$30.49, National Australia Bank up 2% to A$27.84, Commonwealth Bank up 0.3% to A$74.85, and ANZ Banking Group up 1.8% to A$25.34.
Metal mining stocks continued slide, with BHP Billiton down 9.4% to A$18.79, following yesterday's more than 9% falls, after the company said it is facing a massive compensation case over the Samarco mine disaster in Brazil. The company said federal prosecutors are seeking about A$57 billion in compensation. Rio Tinto - which also sank sharply on Wednesday - was 0.73% higher to A$48.20.
Australian retail turnover rose 0.4% in March 2016, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures. This follows a rise of 0.1% in February 2016.
The latest Australian Bureau of Statistics (ABS) International Trade in Goods and Services data showed that the balance on goods and services was a deficit of A$2,163m in March 2016 in seasonally adjusted terms, a decrease of A$881m (29%) on the deficit in February 2016.
China Market ends higher
Mainland China stock market ended tad higher after recouping losses late afternoon after private survey data showed that activity in China's services sector expanded in April, but the gains were slightly less robust than in March. Most of the SSE sectors declined, but airline stocks surged after China's central government on Wednesday unveiled plans to promote airline transportation by pledging to open up low-altitude air space. The benchmark Shanghai Composite Index advanced 6.57 points, or 0.22%, to 2997.84. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, grew 4.46 points, or 0.14%, to 3213.92.
Shares of airline companies surged after China's central government on Wednesday unveiled plans to promote airline transportation by pledging to open up low-altitude air space. China's biggest carriers, including Air China, China Eastern Airlines and China Southern Airlines all jumped more than 3%.
Hong Kong Market falls 0.37%
The Hong Kong stock market finished lower in volatile trade, as risk sentiment was soured by overnight weakness on Wall Street, and amid fresh signs that the China's nascent economic recovery is resting on weak foundations. The benchmark Hang Seng Index dropped 76.01 points, or 0.37%, to 20449.82 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 70.64 points, or 0.81%, to 8626.73 points. Turnover reduced to HK$56.5 billion from HK$61.4 billion on Wednesday.
Worries are mounting that the China's debt-fuelled recovery in the first quarter could be short-lived, amid signs that fresh liquidity has failed to energise China's economic muscles, with the spill-over boosting property and commodity prices instead. A private survey showed on Thursday that activity in China's services sector expanded in April, but the gains were slightly less robust than in March.
Shares of CKI Holdings (01038) rose 2% to HK$75.2, becoming the best performing blue chip, while New World (00017) ended down 2% to HK$7.44, becoming the worst performing blue chip, after Goldman Sachs' downgrade to "neutral".
HSBC (00005) dipped 1% to HK$49.65. HSBC Private Bank has filed an appeal against the SFC's fine of HK$600 million in connection with its sale of Lehman Brothers-related notes. The hearings are currently held. StanChart (02888) slid 3.3% to HK$57.85 after its management was criticized for high pay in yesterday's AGM in London.
AIA (01299) bucked the downtrend, rising 2% to HK$45.8. Henderson Land (00012) and Sino Land (00083) slipped 1% to HK$47.25 and HK$11.9 after the investment bank lowered its industry view for HK property sector to "neutral".
Melco Dev (00200) put on 3% to HK$8.92. Its associate Melco Crown has agreed to spend US$800 million for share repurchase. Sands China (01928) edged up 0.4% to HK$27.55. JP Morgan said Macau government may prohibit betting via telephone starting next Monday. Analysts see this policy may hurt the business of VIP rooms.
Hong Kong's value of total retail sales in March, provisionally estimated at HK$34.7 billion, dropped 9.8% compared with the same month in 2015, according to the Census and Statistics Department.
Indian indices snap 3-day losing streak
Capital goods stocks and index heavyweights HDFC and ITC led gains for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 160.48 points or 0.64% to settle at 25,262.21. The Nifty rose 28.95 points or 0.38% to settle at 7,735.50.
Shares of Idea Cellular slumped on concerns of increase in debt burden and interest costs after a foreign brokerage reportedly said in a research note that the company may spend about Rs 8627 crore ($1.3 billion) in adding data spectrum in key markets in the upcoming spectrum auction around July 2016. Similar concerns weighed on the Bharti Airtel counter. Index heavyweight and housing finance major edged higher, with the stock extending post-result gains. Adani Ports and Special Economic Zone (APSEZ) dropped on reports that a foreign brokerage has reduced its price target on the stock, citing slowdown in the company's core port earnings growth.
Wipro rose 0.54% to Rs 542.70. The company after trading hours today, 5 May 2016, announced that it has successfully implemented its Software as a Service (SaaS) platform- Managed File Transfer as a Service (MFTaaS) on Amazon Web Services (AWS) for organizations, thereby helping them integrate digitally with their clients, partners and employees. Wipro anticipates that the MFTaaS platform can potentially reduce up to 30% in TCO (Total Cost of Ownership) for its clients vis-a-vis traditional deployments, the company said in a statement.
Shares of Idea Cellular edged lower on concerns of increase in debt burden and interest costs after a foreign brokerage reportedly said in a research note that the company may spend about Rs 8627 crore ($1.3 billion) in adding data spectrum in key markets in the upcoming spectrum auction around July 2016. The stock fell 5.39% at Rs 113.15.
Bharti Airtel also edged lower on concerns of increase in debt burden and interest costs after this same foreign brokerage said in the research note that the company may selectively buy 4G airwaves in the coveted 700 Mhz band in a few circles in the upcoming spectrum auction around July 2016. The stock fell 1.64% at Rs 354.90.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 was up 0.8% to 6876.48. Taiwan's Taiex index slid 0.2% to 8167.96. Malaysia's KLCI lost 0.75% to 1645.09. Singapore's Straits Times index shed 0.2% to 2767.81.
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