Asian market opened weaker today as risk sentiments curbed by tracking weak finish of Wall Street stocks overnight. Also borderline growth in China's manufacturing activity curbed investor appetite for further risk. The regional market, however, recouped most of lost ground before finishing the trade.
Trading activity was light across the Asian market as investors shied away from any major moves ahead of the release of U.S. jobs data later in the day that will provide the latest gauge of the U.S. economy's strength. While a report yesterday showed jobless claims in the U.S. jumped to a nine-week high, employment data due today is expected to show an improving labour market.
Data yesterday showed claims for U.S. unemployment benefits rose to 344,000, the most since Feb. 22. Separate reports showed the Institute for Supply Management's gauge of U.S. manufacturing increased in April, while household purchases, which account for about 70% of the world's largest economy, jumped by the most since August 2009.
The Fed, which announced its fourth straight $10 billion cut to stimulatory bond buying April 30, says the job market in the world's largest economy is improving.
Among Asian bourses, Australian share market closed slightly firmer by the close of trade, as strength in shares of financials, healthcare, industrials and consumer staples companies helped to offset losses in mining, realty and energy counters. The benchmark S&P/ASX200 rose 9.30 points to 5458.10, while the broader All Ordinaries jumped by 8.40 points to 5438.80. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each were down by 1.4% over the past week.
Banks and financials were higher, led by Macquarie Group, rising 0.9% after the investment firm generated its highest profit for six years. MQG made a net profit of A$1.265 billion for the 12 months to March 3, up 49% from A$851 million a year ago. MQG flagged in March it was expecting its profit to rise by 40-45%. A second dividend of A$1.60 per share will be paid, with a special dividend of A$1.16. Among banks, ANZ Banking Group rose 0.8% to A$34.34, Westpac Banking Corp 0.5% to A$34.57, and Commonwealth Bank of Australia 0.6% to A$79.14 while National Australia Bank fell 0.4% to A$34.56.
Materials and resources stocks were mixed, with resources giant BHP Billiton down by 0.6% to A$37.27 after recent weakness in commodity prices, while Rio Tinto added 0.3% at A$60.98 and Fortescue Metals Group 1.2% to A$4.91.
Treasury Wine Estates Ltd. increased 6.5% to A$4.09 after the Australian newspaper said Pernod Ricard SA is interested in buying its U.S. assets.
In Japan, Japanese share market finished the session slightly lower by the close of trade on Friday, 02 May 2014, as profit-taking set in after the prior session's strong rise. Meanwhile weakness in Sony shares after an earnings forecast cut also weighed on the market. The benchmark Nikkei 225 index eased 27.62 points to finish at 14,457.51, while the Topix index of all first-section shares was flat, inching up 0.02%, or 0.28 points to 1,182.48. Tokyo financial markets will be closed on Monday and Tuesday.
Shares of heavily weighted shares declined on profit booking following strong buying in Thursday's trade. Tokyo Electron lost 1.0%, Fast Retailing slipped 0.2%, and auto parts maker Denso dropped 1.0%.
Land developers and financials advanced on bottom fishing following steep losses over the last few weeks. Sumitomo Realty & Development gained 2.0% and Nomura Holdings added 0.6%.
Sony Corp declined 0.6% after the company issued a profit warning, slashing full-year operating-profit forecast for the just-ended fiscal year to Y26 billion from Y80 billion, and said it expects a wider loss to fix its unprofitable PC and television businesses.
IHI Corp gained 5.4% after U.S. hedge fund Third Point revealed in letter to investors dated Thursday that fund manager Daniel Loeb said IHI's margins will expand in two core business areas aerospace and defence. Another reason behind Mr Loeb's bullishness is a presumed rise in the value of IHI's real estate assets located near where the 2020 Tokyo Olympic village will be built.
In Hong Kong, shares in the city's market finished the session modestly higher, as investors chased for bottom fishing following steep fall in previous session and on report that China revised up the FY2014 railway FAI target to 800 billion yuan from 700 billion yuan. The benchmark Hang Seng index was up 0.57% to 22260.67, while Hang Seng China Enterprises Index added 0.23% to 9802.46.
Among the HK 50 blue chips, 31 rose and 16 fell while remaining 3 stocks closed steady. Galaxy Entertainment Group 3% to HK$62.70, contributing 13-points gains to the benchmark Index and becoming the best-performing blue chip in percentage change term. China Unicom declined 1.9% to HK$11.68, contributing 4-points losses to the benchmark Index and becoming the worst-performing blue chip in percentage change term. .
Shares of railway builders rallied sharply after HSBC reported that the Chinese government will increase railway investment by at least 23% to support economic growth. China Railway Group gained 9.3% to HK$3.77. China Railway Construction Corp. advanced 7.3% to HK$6.88.
Gaming companies also rallied after government data showed Macau casino revenue increased 10.6% from a year earlier to 31.3 billion patacas ($3.9 billion) in April. Galaxy Entertainment Group, controlled by billionaire Lui Che-woo, rose 3% to HK$62.70. Sands China added 2.1% to HK$57.80. Wynn Macau jumped 4% to HK$31.8 after reporting strong quarterly earnings.
China telecom carriers were generally weaker on the impact of VAT tax, which will replace the sales tax from June. China Unicom (00762) declined 1.8% to HK$11.68. China Mobile (00941) edged down 0.8% to HK$73.1. China Telecom (00728) was unchanged at HK$3.98. Internet players staged rebound. Tencent (00700) added 2.5% to HK$495.4. Kingsoft (03888) ascended 2.1% to HK$24.35. IGG (08002) jumped 12.5% to HK$6.03.
Hong Kong's value of total retail sales in March, provisionally estimated at HK$39.6 billion, dropped 1.3% over a year earlier, data from the Census and Statistics Department showed. The revised estimate of the combined value of total retail sales for January and February increased 6.7% over the same period a year earlier. For the first quarter of 2014, total retail sales rose 4.2% in value over the same period a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales in March fell 2.3% over a year earlier. The revised estimate of the combined volume of total retail sales in January and February grew 7.9% over the same period a year earlier. For the first quarter of 2014, total retail sales expanded 4.7% in volume over the same period a year earlier.
In India, key benchmark indices settled marginally lower amid a choppy trading session. The barometer index, the S&P BSE Sensex, was provisionally down 25.53 points or 0.11%, off close to 180 points from the day's high and up about 5 points from the day's low.
Coal India rose 0.99%. The company said during market hours that as per provisional basis the production in April of the company and its subsidiaries was 100% of its targeted production at 37.51 million tonnes. Offtake in April was 90% of its targeted offtake at 40.54 million tonnes.
Hindustan Construction Company surged 7.09% after the company reported a net profit of Rs 24.40 crore in Q4 March 2014 as against net loss of Rs 50.30 crore in Q4 March 2013. Hindustan Construction Company (HCC)'s turnover rose 20% to Rs 1184 crore in Q4 March 2014 over Q4 March 2013.
Shriram City Union Finance surged 4.14% after consolidated net profit rose 20.49% to Rs 151.36 crore on 0.85% decline in total income to Rs 833.94 crore in Q4 March 2014 over Q4 March 2013.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index added 0.86%. New Zealand's NZX50 rose 0.46%. South Korea's KOSPI index was down 0.12%. Singapore's Straits Times index fell 0.37%. Indonesia's Jakarta Composite Index edged down 0.03%. Malaysia's KLSE Composite fell 0.13%. China Market closed for holiday.
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