Asia Pacific blue chips shares mostly declined on Tuesday, 27 October 2015, as investors booked recent gains on caution ahead of three central bank meetings plus a number of important economic data later in the week.
The Federal Reserve meets later today and tomorrow in the second-last policy meeting for 2015 which will be most closely watched. While it is widely anticipated that the Fed would stand on the sideline this month, investors are interested in seeing policymakers' outlook on economic growth and guidance for future tightening. The Reserve Bank of New Zealand (RBNZ) meeting due Thursday would also bring no change in the monetary decision despite persistent decline in commodity prices and a softer set of economic data for New Zealand. The Bank of Japan (BoJ) meeting due on Friday will also closely watch amid speculation of additional stimulus to counter a downturn in the world's third largest economy.
Meanwhile, UK and US will release GDP data on Tuesday and Thursday respectively. Markets have been pushing back expectation of rate hike from BoE and Fed and any change in the economic outlook will have further impact on the expectations. Inflation data form Eurozone, Japan and Australia would be released throughout the week.
Among Asian bourses
Nikkei falls 0.9% on profit booking
The Japanese share market retreated from Monday's near two-month closing high, as investors opted to lock in gains before central bank meetings in the United States and Japan later this week, as well as a rush of company earnings. Total 31 TSE first-section sector sub-indexes ended down, with Oil & Coal Products, Iron & Steel, Mining, Insurance, Marine Transportation and Nonferrous Metals issues being major losers. The Nikkei Stock Average declined 170.08 points, or 0.9%, to end at 18777.04 points. The broader Topix index lost 1.02%, or 15.88 points, to 1543.11 at the close.
Total 31 TSE first-section sector sub-indexes ended down, with Oil & Coal Products led declines after crude oil dropped to near a two-month low. Energy explorer Inpex Corp. lost 3.1%, while Japan Petroleum Exploration Co. sank 4%.
Advantest Corp. sank 2.2% after the maker of electronics lowered its full-year profit forecast by 44% on deteriorating sales. The results weighed on other semiconductor-related companies, including Sumco Corp., which slumped 5.7%, and Screen Holdings Co., which fell 1.3%.
Seven & I Holdings surged 3.2% after reports that U.S. hedge fund Third Point bought a stake in the Japanese retailer and wants the company to downsize its general merchandise business to improve profitability.
Australia market loses ground
The Australian share market ended softer for second consecutive session after fluctuating between gains and losses, amid caution ahead of three central bank meetings plus a number of important economic data. Shares of energy and material sectors were top losers in the ASX, while healthcare, consumer staple and consumer discretionary issues being major gainers. The benchmark S&P/ASX 200 index declined 1.80 points, or 0.03%, to 5346.20 points, while the broader All Ordinaries index sank 1.70 points, or 0.03%, to 5384.60 points.
The banks and financial stocks ended mixed. Commonwealth Bank of Australia closed 0.3% higher at A$77.74 and ANZ Banking Group ended 0.1% up at A$28.94. Westpac Banking Corp fell 0.2% to A$31.77, while National Australia Bank was in a trading halt pending an announcement.
Oil explorer stocks were lower in reaction to drop in Brent Crude prices below $44 a barrel overnight on worries that the oversupply in oil products would swell from unseasonably warm weather and the waning maintenance cycle for U.S. refineries. Woodside Petroleum declined 2.5% to A$30.30, Santos 1.3% to A$6.34, and Origin Energy 3.6% to A$5.64.
Shares of material companies were also down, with BHP Billiton lower by 0.9% to A$24.57 and Rio Tinto down by 1.9% to A$52.81. Junior iron ore miner Fortescue Metals tumbled 9% to A$2.33
Pension services firm Link Group, Australia's biggest initial public offering so far this year, spiked as much as 11% on its market debut.
China market raises to two month high
The Mainland China stocks ended at two-month high after recouping intraday losses late afternoon, with shares of technology, industrial and consumer goods companies being major gainers and helped to overshadow losses in commodity related stocks. The Shanghai Composite Index rose 0.14%, or 4.76 points, to close at 3434.34 points, the highest level since Aug. 21, when index closed at 3507.74. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 0.65%, or 13.30 points, to 2043.78. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, rose 1.44%, or 36.48 points, to close at 2563.96.
Defense stocks were up on concerns about military tension in the South China Sea after a U.S. navy patrol sailed close to islands claimed by Beijing. Aerospace Communications Holdings Group Co. and shipbuilder CSSC Offshore & Marine Engineering Group Co. both locked at 10% upper circuit.
Commodity producers were down, amid drop in crude oil prices overnight, with oil majors PetroChina and Sinopec fell over 1% each. Shares of Gold miners Shandong Gold and Zhongjin Gold lost 2.6% and 3% respectively, as prices of the yellow metal traded flat on Tuesday. Anhui Conch Cement Co. losing 0.9% after third-quarter profit fell 40%.
Hong Kong market ups in cautious trade
Hong Kong stock market closed higher in cautious trade, ahead of Fed's rate-decision meeting, with retailer stocks leading advances. The benchmark Hang Seng Index rose 26.48 points, or 0.11%, to 23142.73 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, fell 32.89 points, or 0.31%, to 10714.79 points. Turnover reduced to HK$69 billion from HK$72.8 billion on Monday.
Retailer stocks rose, with Belle International (1880.HK) leading rally, up 6% to HK$7.70 on strong fund buying after it reported better-than-expected first-half earnings. Anta Sports (2020.HK) advanced 8.7% to HK$21.95, Samsonite (1910.HK) 2.6% to HK$25.50, and Prada (1913.HK) 3.8% to HK$31.55. Esprit (00330) soared 23% to HK$8.24 after it reported that 1QFY2016 revenues grew 9.1% in local currency.
Realty stocks were weaker, with COLI (00688) down 0.8% to HK$25.95 despite reporting 17% jump in 9-month operating profit, meanwhile, its subsidiary China OVS PPT (02669) plunged 12% to HK$1.19 after yesterday's rally of 27%. CR Land (01109) also dipped 1.4% to HK$21.5.
China Longyuan (00916) sank 5.3% to HK$7.93 after both BofAML and Citi Research lowered their target prices for the power generation firm.
Sensex ends down
Indian stock market closed in red as sentiment remained cautious ahead of the US Federal Reserve's two-day policy meet scheduled later in the day. Quarterly results and the expiry of monthly derivative contracts on Thursday also affected market sentiments. Sensex closed 108.52 points, or 0.40%, down at 27253.44 while Nifty closed 32.95 points, or 0.40%, down at 8,227.60.
Lupin plunged over 5% after reporting second-quarter net profit much below market estimates, due to lower revenue from the United States, its largest market.
TVS Motor Company share price surged over 7% after the company reported 22.78% year-on-year (yoy) rise in its net profit figures for the quarter ended September 30, 2015.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index declined 0.5% to 8701.32. South Korea's KOPSI fell 0.2% to 2044.65. Singapore's Straits Times index slipped 1% at 3052.53. Indonesia's Jakarta Composite index sank 0.4% to 4674.06. Malaysia's KLCI fell 0.6% to 1696.95. New Zealand's NZX50 gained 0.5% to 6001.
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