China's National Statistics Bureau said on Monday that the domestic producer price index (PPI) contracted 1.3% last month after falling 1.6% in August. In a separate report, the Statistics Bureau said China's consumer price inflation rose to 3.1% last month from 2.6% in August. Over the weekend, China, the world's second-largest economy, said that exports from China were down 0.3% in September, while imports to China rose 7.4%, resulting the trade (export + import) surplus growth trimmed at 3.3% YoY to $15.2 billion in September, compared with 7.1% growth to $28.6 billion in August.
Risk sentiments were also bearish as US policymakers are still deadlocked regarding reopening the government which dragged on for a third week with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a US sovereign default.
With the October 17 deadline to increase the US debt ceiling looming, Republican leaders have said they would vote to extend the government's borrowing authority for six weeks while a spokesman for President Barack Obama said he would likely sign a bill to increase the nation's ability to borrow money. But, Republicans and Democrats in the US Congress were unable to strike a budget deal to reopen the government on Sunday, which had been partially shut down for two weeks. After efforts in the House of Representatives to reach a fiscal deal failed last week, negotiations on ending the shutdown and avert a potential federal default have shifted to the Senate.
According to the US Treasury, the United States will run out of cash to meet its financial obligations on October 17, and failure to raise the $16.7-trillion debt limit will trigger the first default on the US debt in history.
Among Asian bourses, the Australian share market declined today, weighing the benchmark S&P/ASX200 down by 0.44% to finish at 5207.90, while the broader All Ordinaries lost 0.43% to 5206.50. The fall in the Sydney market came after surprise fall in Australian home loan approvals data, unexpected drop in exports from China, and the threat of default by the world's largest economy later this week.
The Australian Bureau of Statistics said on Monday that Approvals for the purchase of owner-occupied homes in Australia had fallen a seasonally adjusted 3.9% in August from July, following six straight monthly gains. The value of loans for investment housing was unchanged from July, the bureau said. Finance approvals to build new houses rose 2.2% in August from July. But approvals to buy new homes fell 4.0%, while lending for already built houses fell 4.6% in the month.
Shares of precious-metal miners tumbled the most in the Sydney as bullion prices fell on Friday amid hopes for a US budget/debt deal with the Comex December futures price down by $28.70 an ounce, or 2.2%, to $1268.20 per ounce. Newcrest Mining declined 3.8% to A$10.10, Kingsgate Consolidated 3.3% to A$1.46 and Perseus Mining 5.2% to A$0.455.
Materials and resources blue chips also weaker, with BHP Billiton falling 0.2% to A$35.06 and Fortescue Metals Group 0.6% to A$4.97, while Rio Tinto edged up 0.1% to A$61.65.
OZ Minerals (OZL) shares fell 9.3% after cutting its annual copper production forecasts for the second time this year due to set backs at its Prominent Hill mine in South Australia.
BlueScope Steel (BSL) declined 1.9% after announcing it has agreed to acquire OneSteel's sheet and coil distribution assets to improve efficiencies
In New Zealand, NZ shares went lower, with the NZX 50 Index falling 6.603 points, or 0.1%, to 4734.167. Within the index, 24 stocks fell, 16 rose and 10 were unchanged.
Diligent dropped 15% to NZ$4.12 in New Zealand, adding to its 14% decline on Friday, when the boardroom software company said it signed 122 net new client agreements in the three months ended Sept. 30, down from 168 a year earlier. The company has previously flagged that it is restating three years of revenue because of miscounting.
SkyCity, the Auckland-based casino and hotel operator, slipped about 1% to NZ$4.03 and was the most traded stock on the NZX 50, with about 3.5 million shares changing hands.
In China, shares in the Chinese market advanced, as investors confidence were boosted by government data showing a faster-than-expected rise consumer price index in September. The Shanghai Composite picked up 0.43% to 2,237.77, following last week's gain of 2.5%.
Shares of industrial sector were biggest gainer in Shanghai, with rail related companies leading the way up, after on speculation they may help build Thailand's high-speed train system. China showed interest in developing Thailand's high-speed train system and Thailand wants to partially pay China with agricultural products, Prime Minister Yingluck Shinawatra told reporters after talks with Chinese Premier Li Keqiang in Bangkok on October 11.
Among railway stocks, CSR Corp locked 10% upper circuit at 4.31 yuan. China CNR Corp rose by 10% daily limit at 4.59 yuan. China Railway Group jumped 9.9%. China Railway Construction Corp climbed 9% to 5.43 yuan after saying it won a project worth about 20 billion yuan ($3.27 billion) to build infrastructure and public projects on the southern island province of Hainan.
Shares of property developers declined the most in Shanghai after the China Securities Journal said the government may accelerate the establishment of long-term controls on the property market. Vanke, the nation's biggest listed property developer, fell 2.5% to 9.20 yuan. Poly Real Estate dropped 2.7% to 9.90 yuan, while China Merchants Property Development Co slid 3.3% to 24.17 yuan.
In India, Indian benchmark indices retained positive in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 93.62 points or 0.46%, up close to 125 points from the day's low and off about 25 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
The market sentiment in India was also boosted by provisional data showing that foreign funds remained net buyers of Indian stocks on Friday, 11 October 2013. Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.
IndusInd Bank rose in volatile trade after the private sector bank reported strong Q2 results. The stock was up 1.2% at Rs 433.20. The scrip hit high of Rs 439.95 and low of Rs 422 so far during the day. The bank's net profit jumped 31.96% to Rs 330.23 crore on 18.88% growth in total income to Rs 2435.30 crore in Q2 September 2013 over Q2 September 2012. The bank announced Q2 result during market hours.
Indian IT major TCS jumped 4.38% to Rs 2,217, with the stock extending intraday high ahead of its Q2 result tomorrow, 15 October 2013. The stock hit record high of Rs 2,217.95 in intraday trade.
Telecom stocks edged higher on reports that the Indian government is expected to give a go-ahead to trading and sharing of spectrum between telecom operators, while also recommending a uniform Spectrum Usage Charge (SUC) for various telecom services. Tata Teleservices (Maharashtra) (up 3.17%), Reliance Communications (up 0.9%), and Bharti Airtel (up 0.42%), gained.
Elsewhere in the Asia Pacific region, Indonesia's Jakarta Composite Index gained 0.74%. South Korea's KOSPI fell 0.23%. Taiwan's Taiex lost 0.9%. Malaysia's KLSE Composite shed 0.06%. Singapore's Straits Times index was down 0.45%. Japan and Hong Kong market closed for public holiday.
Powered by Capital Market - Live News
