Headline shares of the Asia Pacific market closed mixed on Tuesday, 09 September 2014, as continued tensions in Ukraine and concerns about Scotland's upcoming referendum for independence (18 Sept) kept investors risk appetite under pressure. The MSCI Asia Pacific Index slipped 0.4% to 147.76, heading for its lowest close since Aug. 13.
According to a YouGov poll released on Sunday, support for independence of Scotland jumped again to 51% and surpassed the anti-exit camp for the time since the referendum campaign begins. Another poll showed today that 38% of respondents said they would vote Yes to independence in the Sept. 18 referendum, up from 32%, while 39% favoured the status quo.
Economists noted that the chance of independence now drives a "steep rise" in financial uncertainties". A key concern is, in case of independence, how London and Edinburgh are going to share related assets and liabilities, as BoE's role of the lender of last resort to Scottish banks. There were even talks of an "abrupt" out flow of bank deposits from Scotland within days of Yes result in the referendum.
UK chancellor of exchequer Osborne said over that weekend that a plan of actions will be announced in the next few days to "give more powers to Scotland; more tax powers, more spending powers, more powers over the welfare state." And, major focus will be on whether such measures could turn the tide. But most likely, all the uncertainties would at least continue to pressure the pound until the vote on September 18.
Among Asian bourses
Aussie market snaps four-day losing streak
Australian market closed higher for the first time in five consecutive sessions, with shares of the mining and financial sectors being major gainer. The benchmark S&P/ASX 200 Index advanced 30.90 points to 5607.90 and the broader All Ordinaries Index gained 29.30 points to 5608.20. Traded volume was light, 1.95 billion shares worth of A$3.45 billion, for the second day with a number of holidays in the region and a busy tail-end of the week.
The financial stocks were up, with gains from three of Australia's four big banks were the main driver of the day. Commonwealth Bank of Australia advanced 0.3% to A$81.54, Westpac Banking Corp 0.1% to A$34.61 and ANZ Banking Group 0.6% to A$33.48. National Australia Bank dropped 0.1% to A$34.63, extending yesterday's 0.5% slump as Credit Suisse said the lender's Clydesdale Bank division in Scotland could take a hit if the Scottish vote in favour of independence from Britain next week.
Materials and resources stocks surged, led by BHP Billiton and Rio Tinto which both rose by 1.23% to A$36.10 and A$61.77, respectively. Fortescue Metals rose 1% to A$4.04.
Brambles shares fell 0.4% to A$9.48 after the logistics business announced the purchase of British-based Ferguson Group for A$554 million. Ferguson provides more than 18,000 containers for the offshore gas industry.
WorleyParsons also announced an acquisition, picking up US gas and oil consultancy MTG. Its shares lifted 0.8% to A$15.91.
Nikkei rises as yen depreciates to weakest level since 2008
Japanese share market finished the session modest higher, as greenback strengthening above 106 level against the yen underpinned buying in related stocks. But gains were limited as continued tensions in Ukraine and concerns about Scotland's upcoming referendum for independence (18 Sept) kept investors risk sentiments under pressure. The Nikkei 225 index rose 0.28%, or 44.04 points, to 15749.15, while the Topix index of all first-section shares added 0.08%, or 0.98 points, to 1299.62.
Exporters gained as the yen weakened. In the afternoon the dollar bought 106.23 yen, compared with 106.03 yen in New York Monday. A stronger greenback benefit Japanese exporters by increasing their overseas earnings in yen terms while giving them scope to price goods more competitively in foreign markets.
Mazda added 1.6% to 2,569 yen. Toyota Motor Corp, the world's biggest automaker, advanced 0.3% to 6,127 yen. Sony Corp. added 1.2% to 2,042 yen.
NSK jumped 2.9% to 1,470 yen as Nomura raised its rating to buy from neutral and lifted its target price to 1,700 yen from 1,400 yen. Jtekt Corp jumped 5.1% to 1,734 yen after the brokerage lifted its outlook for the shares to 2,000 yen from 1,800 yen.
SoftBank, the biggest investor in Alibaba Group Holding, surged 4.5% to 7,969, on the back of swelling enthusiasm for Chinese e-commerce giant Alibaba Group Holdings' ongoing investor IPO roadshow. SoftBank holds a 34% stake in Alibaba.
Shanghai Composite closes at 19-month high
Mainland China shares closed mixed after swinging between gains and losses on Tuesday, 09 September 2014, as investors withdrawing some profit off the table following strong recent gains and after data showed imports unexpectedly dropped. The benchmark Shanghai Composite closed 0.09 point higher at 2326.53, the highest level since 3rd March 2013 when index closed at 2347.18. The CSI 300 declined 0.2% to close at 2,445.22, halting a six-day.
The General Administration of Customs said on Monday that exports in the world's second-largest economy jumped 9.4% on year in August, higher than expectations for 8% rise, but slower than July's 14.5% growth rate. But imports fell an annual 2.4%, missing estimates for a 1.7% increase, which led to an all-time high trade surplus of US$49.8 billion, exceeding forecasts for a surplus of US$40 billion.
Shares of lenders and developers declined on profit booking following stellar gains recently. Bank of Beijing Co. slid 2.5% to 7.71 yuan and Poly Real Estate Group Co. fell 2% to 5.80 yuan.
People.cn Co., the online unit of the Communist Party's newspaper, retreated 1% to 49.32 yuan, paring a monthly rally to 45%.
Sensex, Nifty retreat from record highs on profit-booking
Indian stock market drifted lower today, due to profit-taking by funds and retail investors amid weak European cues and concerns an increase in US interest rates will reduce the attractiveness of higher-yielding emerging-market assets including Indian stocks. The 30-share BSE index Sensex ended at 27265.32, down 54.53 points and the 50-share NSE index Nifty closed at 8152.95, down 20.95 points.
Cipla gained 2.73% to Rs 578.80 after announcing the commercial collaboration with UK-based S&D Pharma in the Czech Republic and Slovakia to focus on its core therapy areas.
Ashok Leyland gained 5.31% to Rs 40.65 after announcing it has bagged orders worth nearly Rs 1500 crore for supply of buses under JNNURM-II scheme.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index added 0.29% to 9434.77. Singapore's Straits Times index rose 0.23% to 3342.96. Malaysia's KLCI has gained 0.16% to 1874.12. New Zealand's NZX50 fell 0.34% to 5243.70. Indonesia's Jakarta Composite index sank 0.94% to 5197.12. Markets in South Korea and Hong Kong are closed for a holiday.
Powered by Capital Market - Live News
