Headline equities of the Asia Pacific market closed mostly down after wavering between positive and negative territory on Friday, 30 January 2015, as a late earnings-led surge on Wall Street overnight failed to overshadow concerns over global growth. The MSCI's broadest index of Asia-Pacific shares outside Japan edged down about 0.2%.
Shares in regional market opened the day higher, as investment sentiment got a lift from Thursday's US gains, which saw major US indexes surging almost 1% or more as Apple Inc and Boeing Co extended gains after strong earnings reports this week. US jobless claims figures also helped bolster the mood, with the number of Americans filing new claims for unemployment benefits last week marking its biggest weekly decline since November 2012, falling to its lowest since April 2000.
But the regional market quickly turned around, as investors rushed for profit booking on cautious ahead of fourth-quarter US gross domestic product data later on Friday and ahead of China's official data on manufacturing that due over the weekend. The China's official purchasing managers' index is due out Sunday, followed by a similar survey by HSBC on Monday
Among regional bourses
Australia market gains for seventh straight session
The Australian share market ended higher, registering seventh session of consecutive rise. The gains came on account of rebound in resources stocks and continued hunt for high-yielding stocks amid anticipation that the central bank will lower interest rates at next week's policy meeting. The benchmark S&P/ASX 200 Index rose 0.34% to 5588.30 and the broader All Ordinaries Index gained 0.35% to 5551.60. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index rose 1.6% and 1.5%, respectively, for the week. In the January 2015, the S&P/ASX 200 Index rose 3.3% and the All Ordinaries went up 3%.
Financial stocks extended gains on growing speculation that the central bank could cut interest rates as early as next week. Commonwealth Bank of Australia advanced 0.6% to A$89.33, ANZ Banking Group 0.2% to A$33 and National Australia Bank 0.4% to A$35.63, while Westpac Banking Corp fell 0.5% to A$34.46 amid news it was selling its businesses in five smaller Pacific-Island nations but keeping those in Fiji and Papua New Guinea.
Shares of materials and resources companies rebounded on bottom fishing after heavily sold in recent months as commodity prices have weakened. Among the major miners, BHP Billiton was up 1.1% to A$29.26, while Rio Tinto ended 0.9% higher at A$57.56. Fortescue Metals rebounded 5.8% to A$2.36 as both Macquarie and RBC Capital Markets issued upbeat notes about the iron-ore extractor.
Newcrest Mining fell 1% to A$13.56 on profit taking after climbing nearly 24% over the month. On Friday, it increased full-year production guidance by 100,000 ounces to between 2.3 million and 2.5 million ounces.
Energy stocks also ended with the gains. Woodside Petroleum added 1.6% to A$34.28, Santos gained 1.9% to A$7.88 and Oil Search rose 0.9% to A$7.77. Whitehaven Coal fell 4.6% to A$1.24 after reporting a wider half-year loss as a deepening slump in global coal prices overshadowed record sales.
Nikkei ends modest 0.39% higher
Japanese share market ended higher, as risk sentiments boosted up after better than expected domestic industrial output and retail sales data for last month. Meanwhile, buying momentum underpinned further by impressive earnings reports from several bellwether firms such as Nomura Holdings and Advantest Corp. The benchmark Nikkei Stock Average advanced 0.39% to close at 17674.39, while the broader Topix has lost 0.11% to close at 1415.07. For the week, the Nikkei index added 0.9%. For the month of January, the market was up 1.3%.
Japan's retail sales rose 0.2% year-on-year for a sixth straight month in December, following a revised 0.5% rise in November, data by the Ministry of Economy, Trade and Industry (METI) showed on Thursday. The sales data indicating an evidence of a gradual recovery in private consumption as the economy climbs out of recession.
Also data released on Friday showed manufacturing output increased 0.3% in December from a year earlier and by 1% from the month before, suggesting the world's third-largest economy may be turning the corner on a recession brought on by a hefty sales tax hike. However, inflation moderated to 2.5% from a year earlier, compared with 2.7% in November. The core consumer price index, excluding food, fell 0.2% from the month before. Meanwhile, Japan's jobless rate dipped to 3.4% from 3.5% the month before.
Chip testing equipment maker Advantest surged 9.3% to 1512 yen, thanks to solid third quarter numbers. The firm booked 4.7 billion yen net profit, up 43% on year, and raised its full-year guidance.
Brokerage bellwether Nomura Holdings added 1.5% to 634.50 yen after the firm booked 3Q results showing a net profit of 70 billion yen. The firm also announced plans for a share buyback with a ceiling of 30 billion yen, or 1% of outstanding shares.
Shinsei Bank added 5.4% to 215 yen after booking an April to December nine-month net profit of 52.36 billion yen, almost double the year-ago figure, and well ahead of estimates. It also raised its full-year guidance.
SoftBank Corp fell 3.4% to 243 yen after Alibaba Group Holding reported lower-than-expected revenues for the third quarter. SoftBank has a 32.59% stake in Alibaba.
China stocks tumble ahead of manufacturing PMI data
Mainland China share market declined for fourth consecutive session, as investment sentiment dampened by fresh investigations into stock margin trading and on caution before this weekend's manufacturing data. The Shanghai Composite Index closed down 1.6% at 3210.36, putting the market down 4.2% since last Friday, the biggest weekly decline since December 2013.
The market was facing pressure from both the regulators, who have been cracking down on fast fund inflows into equities, and profit taking after a 37% rally in the fourth quarter. Some investors are retreating after finding the market doesn't present too many investment opportunities at this stage.
Much of the malaise is due to concerns over the presence of high levels of leverage in the stock market. Fears of another clampdown weighed on the market for much of this week too. A news report from the official news agency Xinhua released late on Wednesday said that the securities regulator will inspect margin trading activities at 46 companies, though it said the regulator that the inspections were a normal event that "should not be over-interpreted".
All ten SSE industry groups declined, with shares of industrial issue falling the most, down 3.6%, followed by information technology (down 2.1%), energy (down 1.7%), financial (down 1.1%), materials (down 1%), consumer discretionary (down 1%), and utilities (down 0.9%). Meanwhile, healthcare, consumer staples and telecommunication services issues all declined by 0.4%.
Shares of financial companies, especially brokerages, continued to fall today, with Haitong Securities losing 1.8% and Founder Securities falling 2.2%.
Stocks in the industrial sector declined the most in Beijing today ahead of official data on manufacturing that is due over the weekend. Shanghai Electric Group Co. lost 4.5% and Shanghai Mechanical & Electrical Industry Co. fell 2.6%.
Hang Seng ends 0.36% down
Hong Kong share market ended down for second day in row, as investment sentiments dampened on tracking drop in Mainland A-share market and on caution ahead of China's official manufacturing data due over the weekend. The Hang Seng Index ended down 88.80 points or 0.36% to 24507.05, off an intra-day high of 24771.37 and day low of 24450.05. Turnover decreased to HK$85.13 billion from HK$89.47 billion on Thursday.
Shares in Hong Kong market opened higher today, on tracking gains for U.S. markets overnight, but soon fell back to the flat line as a heavy fall in index heavyweight Tencent Holdings dragged on the market after New York-listed rival Alibaba Group Holding earnings undershot estimates. Meanwhile, selloff pressure intensified on tracking decline in Mainland A-share market which fell amid concern regulatory scrutiny of margin lending and on caution ahead of official data on manufacturing that is due over the weekend.
Within HK 50 blue chips, 17 stocks rose and 31 fell, while remaining 2 stocks ended steady. Hengan International (01044) put on 3.9% to HK$92.25 after Goldman Sachs put the stock into its conviction buy list, while Galaxy Entertainment (0027) declined 3.1% to HK$40.90, making themselves the biggest blue chip winner and loser.
Macau gaming players fell across the board as the government plans to submit a bill to the legislative council proposing a full smoking ban in casinos and all public space. Galaxy Ent (00027) dipped 3% to HK$40.9 becoming the worst blue-chip loser. Sands China (01928) fell 2.9% to HK$38.05. SJM (00800) and Wynn Macau (01128) slipped 4% and 3.6% to HK$11.44 and HK$21.65. Melco Crown (06883) declined 2.7% to HK$62.55. Melco Dev (00200) and MGM China (02282) dropped 2% to HK%15.58 and HK$18.92.
Most of the major tech stocks declined, with Tencent retreating 1.9% to HK$132, after stock in Alibaba plunged 8.8% overnight. Alibaba's two Hong Kong-traded subsidiaries also suffered significant losses, with Alibaba Pictures Group dropping 7.2% to HK$1.54, and Alibaba Health Information Technology sliding 3.8% to HK$5.12. Online game operator IGG Inc retreated 3.4% to HK$2.85, software developer Kingsoft Corp fell 3.1% to HK$18.62, rival Kingdee International Software Group gave up 4.6% to HK$2.52 and game developer Boyaa Interactive International shed 1.3% to HK$5.38.
Sensex, Nifty settle at over one-week low
Indian stocks tumbled the most in three weeks after two of the nation's largest lenders reported higher bad-debt provisions and the government sold shares in Coal India Ltd. that fetched it $3.6 billion. The S&P BSE Sensex fell 498.82 points or 1.68% to settle at 29,182.95, its lowest closing since 22 January 2015. The CNX Nifty fell 143.45 points or 1.6% to settle at 8,808.90, its lowest closing level since 22 January 2015.
Shares of a number of PSU bank stocks dropped after a sharp post result setback in BoB counter. ICICI Bank dropped after the bank reported an increase in sticky loans in Q3 December 2014. Coal India dropped as the divestment of the government's up to 10% stake in the state-run Coal major was concluded through the stock exchanges mechanism through a single trading session today, 30 January 2015. Power equipment major Bharat Heavy Electricals (Bhel) hit 52-week high. NTPC rose after declaring Q3 result.
HCL Technologies scaled a record high after the company's board of directors at its meeting held today, 30 January 2015 recommended a liberal 1:1 bonus issue. Power generation stocks gained on renewed buying. Realty stocks edged higher on reports the finance ministry has floated a draft cabinet note to amend the Foreign Exchange Management Act to permit overseas funds in real estate investment trusts (REITs).
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.69% to 9361.91. South Korea KOSPI sank 0.09% to 1949.26. New Zealand's NZX50 shed 0.27% at 5744. Singapore's Straits Times index was 0.81% lower at 3391.20. Indonesia's Jakarta Composite index was up 0.51% to 5289.40. Malaysia's KLCI fell 0.05% to 1781.26.
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