Asia Pacific share market ended softer on Monday, 28 September 2015, on caution ahead of key economic indicators scheduled for release this week across the region, with key focus in Japan, China and the U.S.
Market participants are cautiously awaiting for Bank of Japan corporate sentiment survey as well as China's official September purchasing manufacturing managers' index (PMI) and the final Caixin/Markit PMI, both due on Thursday. Meanwhile, U.S. nonfarm payrolls data for September is expected on Friday.
The China's manufacturing PMI reports will be closely watched after Caixin's preliminary reading for September touched a six-and-a-half-year low of 47, well below the key 50-level.
Investors also continued to react to comments by Federal Reserve Chair Janet Yellen last week. Prospects for the US economy generally appear solid, Federal Reserve Chairwoman Janet Yellen said in her speech late Thursday, 24 September 2015 after US markets had closed. She argued in favor of hiking interest rates this year, giving more clarity to Fed watchers.
Among Asian bourses
Financial stocks drive up Australia market
The Australian share market ended solidly higher, as investors chased for heavily beaten stocks following last week's 2.5% drop. All ASX sectors advanced, with financial, energy, IT, utilities, and industrial issues being major gainers. The benchmark S&P/ASX 200 index added 71.40 points, or 1.42%, to end at 5113.50 points, while the broader All Ordinaries index gained 68.40 points, or 1.35%, to 5145.10 points.
Financial stocks were stronger, with big-four lenders being major gainers, as investors picked up beaten down stocks, as investors picked up beaten down stocks. Among top lenders, Commonwealth Bank led rally among major banks, up 1.8% to A$30.24, meanwhile Australia & New Zealand Banking Group added 1.5% to A$27.40, National Australia Bank 1.7% to A$30.30, and Westpac Bank 1% to A$30.24.
Energy stocks were also higher after crude-oil prices strengthened Friday as drilling in the U.S. declined and positive economic data boosted demand expectations. Brent, the global benchmark, saw a 2.4% weekly gain. Among other energy shares, Woodside Petroleum led rally, up 2.9% to A$29.91, on the back of report from Credit Suisse suggesting the company should consider buying back its shares rather than pursuing a takeover of Papua New Guinea-focused Oil Search. Meanwhile, Origin Energy added 4.1% to A$6.81 and Santos 1.3% to A$4.71. Oil Search fell 0.7% to A$7.51.
Shares of M2 Group jumped 13.4% to A$9.55 after it agreed to a merger with rival Vocus Communications in a deal that would build Australia's fourth-largest telecom company, with a market value of more than A$3 billion. The deal marks the latest shake-up of the industry as smaller companies strive to break the dominance of Telstra Corp. over phone and Internet services, and as Australia continues to roll out a national broadband network. Vocus shares fell 7.4% to A$6.01
Nikkei falls on profit booking
The Japanese share market wiped out most of last Friday's gain today, as investors booked profit on fading speculation for further monetary easing after Prime Minister Shinzo Abe statement that he wasn't considering an immediate stimulus package. The selloff was also triggered as more than 1,000 of 1,886 companies in the Topix went ex-dividend today. Total 26 out of the 33 Topix's industry groups ended down, with Pulp & Paper, Iron & Steel, Wholesale Trade, Securities & Commodities Futures, Nonferrous Metals, Insurance, and Pharmaceutical issues being major decliners. The Nikkei Stock Average dropped 235.40 points, or 1.32%, to end at 17645.11 points. The broader Topix index dropped 1.04%, or 15.14 points, to 1438.67 at the close in Tokyo. Trading houses Mitsubishi, Mitsui and Itochu posted hefty losses due to increased position-adjustment selling as well as the ex-dividend effects. Steel makers Kobe Steel and JFE Holdings were hit by heavy selling, along with nonferrous metal producers Mitsubishi Materials and Dowa Holdings.
Mitsui Mining & Smelting sank after Daiwa Securities cut its target price on the stock by about 30%. The brokerage maintained its neutral rating.
Japanese retail shares bucked the trend with sellers of home and office goods leading the way. Electrical appliance retailer Yamada Denki, household goods seller Izumi and office-products retailer Askul all ended with hefty gain.
Railway operator JR Tokai, clothing retailer Fast Retailing and airline JAL rose sharply on growing hopes for an increase in the number of Chinese visitors to Japan during seven straight holidays from Thursday in China.
China market ekes out gain
The Mainland China's stock market eked out gains, on the back of strength in technology, consumer discretionary, healthcare, and telecom stocks. But market gain was limited amid shrinking margin lending ahead of the weeklong National Day holiday and after industrial profits in August suffered their biggest drop since October 2011. The Shanghai Composite Index added 0.27%, or 8.41 points, to 3100.76 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, d added 2.4%, or 40.80 points, to 1737.92. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was up 5.01%, or 101.29 points, to close at 2122.26.
Chinese industrial profits declined 8.8% on year in August, their sharpest pace since 2011, according to the National Statistics Bureau.
Shares of technology companies advanced the most in Beijing. Leshi Internet Information & Technology Corp. surged 10%, while Hundsun Technologies Inc. jumped 4.4%. Wangsu Science & Technology Co. jumped 10%
Shares of banks were among the biggest losers, with Industrial and Commercial Bank of China, Bank of China and Bank of Communications down by more than 1% each.
Oil majors PetroChina and Sinopec also fell over 1% each, tracking a 1% decline in crude oil prices.
Sensex falls on weak global cues
Indian stock market ended lower, as sell-off sparked by tracking weak global cues and caution a day ahead of the central bank's policy meet. The barometer index, the S&P BSE Sensex, fell 246.66 points or 0.95% at 25,616.84. The 50-unit CNX Nifty fell 72.80 points or 0.93% at 7,795.70.
The Reserve Bank of India is expected cut its key repo rate to a four-year low to help support the domestic economy at a time when consumer inflation is at a record low, but may express caution about easing further as price risks still loom.
Top Sensex gainers were Dr Reddy's (5.54%), Lupin (+2.21%), HUL (+1.43%), TCS (+0.83%) and SBIN (+0.73%), while the major losers were Tata Motors (-6.06%), VEDL (-4.4%), Sun Pharma (-3.42%), Infosys (-2.91%) and Coal India (-2.81%).
Elsewhere in the Asia Pacific region: New Zealand's NZX50 rose 0.2% to 5699.13. Singapore's Straits Times index slipped 1.4% at 2791.92. Indonesia's Jakarta Composite index dropped 2.1% to 4121.50. Malaysia's KLCI sank 0.4% to 1608.43. Financial markets in South Korea, Hong Kong and Taiwan were closed Monday for public holidays.
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