Asia Pacific share market closed mixed on Wednesday, 07 September 2016, weighed down by surprisingly slow U.S. service-sector growth data which raised questions about possible rate increases by the Federal Reserve in the near term.
Official data showed the U.S. Institute for Supply Management (ISM) non-manufacturing purchasers manager index (PMI) index fell to 51.4 last month from 55.5 in July. While levels above 50 still indicate expansion, it was the lowest reading since February 2010. The miss, along with Friday's disappointing nonfarm payroll data, likely spurred traders to step away from expectations of a September Fed hike.
Among Asian bourses
ASX200 edges up
Australian share market closed higher for the first time in five sessions in row, as gains in bullion, consumer discretionary, and consumer staples, and materials stocks were more than offset by selling of energy shares as crude-oil prices wobbled ahead of key U.S. inventory data. At close of trade, the benchmark S&P/ASX 200 index was up 10.60 points, or 0.2%, to 5,424.20, while the broader All Ordinaries index has gained 10.70 points, or 0.19%, to 5,521.10.
Gold miners surged on higher prices for the precious metal. Gold was near a three-week high in Asia trade after surging overnight on a weaker dollar following weak U.S. non-manufacturing data that dampened expectations of an imminent rate increase by the U.S. Federal Reserve. Newcrest Mining closed 3% higher at A$23.32while smaller Evolution Mining rallied 7.6% and Northern Star 8% to A$4.52.
Energy shares declined as crude-oil prices wobbled ahead of U.S. oil inventory data due later in the session as well as developments before an informal meeting of the Organization of the Petroleum Exporting Countries later this month. Santos closed down 5% at A$4.20 while Woodside shed 0.8% to A$28.46. Origin Energy rose 0.6% to A$5.19
Nikkei falls 0.41%
The Japan share market ended softer for the first time in six days, as exporters took a hit from yen appreciation against the greenback. The Nikkei average declined 69.54 points, or 0.41%, to end at 17012.44. The Topic index eased 3.05 points, or 0.23%, to end at 1349.53.
Shares of companies doing business overseas declined as yen appreciated against the dollar. A stronger yen is generally seen as negative for Japanese stocks as it makes exports more expensive and reduces overseas earnings when translated back into the home currency. Auto makers Nissan Motor Co ended down 1%, while Mazda Motor Corp. Fell 1.7%. Sony closed down 0.1% and Toyota fell 0.8%.
Financial stocks declined on the prospect for a continued low-rate environment. There have been some expectations that the BOJ might tweak its bond-buying operation to let the yield curve steepen, which could help life-insurance companies and banks improve their margins. Dai-ichi Life Insurance Co. fell 3.9%. Mitsubishi UFJ Financial Group Inc. lost 2.8%.
Japanese companies that are supported by domestic demand rose with Medical-information platform provider M3 Inc. rising 4.2%. Daito Trust Construction Co. gained 2.4%.
Nippon Soda Co. tumbled 11%, after Nikkei Inc. announced the chemical maker will be removed from the gauge. Online marketplace operator Rakuten Inc., which will replace Nippon Soda, surged 7.2%.
China Market ends flat
Mainland China stock market closed mixed on Wednesday, 07 September 2016, amid concern state-backed funds are smothering market moves. The CSI300 index of the largest listed companies in Shanghai and Shenzhen eased 0.05%, to 3,340.82 points, while the Shanghai Composite Index gained 0.04% to 3,091.93 points.
Infrastructure stocks climbed after the State Council said it will ease restrictions on spending in the sector. Restrictions on infrastructure spending will be eased and equal access granted to private investors in sectors such as education and medical care, according to a statement released on the State Council's website Tuesday. Policy banks will be encouraged to increase credit support to investment projects, and state-owned enterprises are being asked to step up investment in rural grid and telecommunication projects, according to the statement that cited a meeting chaired by Premier Li Keqiang. China Gezhouba Group gained 3.1% and Anhui Water Resources Development advanced 1% after the State Council's statement. Power Construction Corp of China advanced 1.8%.
Hong Kong Market snaps four day rally
The Hong Kong stock market closed down, snapping four days of winning streak, hurt by surprisingly slow U.S. service-sector growth data which raised questions about possible rate increases by the Federal Reserve in the near term. The benchmark Hang Seng Index declined 45.87 points, or 0.19%, to 23741.81 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, rose 31.80 points, or 0.32%, to 9970.19. Turnover increased to HK$79.6 billion from HK$75.6 billion on Tuesday.
Mainland insurers saw support after the CIRC announced new regulations. China Life (02628) soared 4.1% to HK$20.15. Ping An (02318) also put on 1.1% to HK$42.8.
Soft US ISM service index dampened hopes of imminent rate hike, which boosted gold prices by 2%. Taung Gold (00621) surged 9.8% to HK$0.112. China Gold (02099) and Zhaojin Mining (01818) also put on 7.6% and 1% to HK$17.64 and HK$8.45.
Sensex snaps two-day winning streak
Indian benchmark indices settled with small decline in a volatile trading session as investors booked profit in recent outperformers. The barometer index, the S&P BSE Sensex, fell 51.66 points or 0.18% to settle at 28,926.36. The Nifty shed 25.05 points or 0.28% to settle at 8,917.95.
Bharat Heavy Electricals (Bhel) surged on high volume after the company reported strong Q1 result during market hours today, 7 September 2016. The stock jumped 15.54% to Rs 159.85. Bhel's net profit surged 54.21% to Rs 77.77 crore on 20.84% growth in total income to Rs 5871.78 crore in Q1 June 2016 over Q1 June 2015.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 rose 0.9% to 7571.11 South Korea's KOSPI index fell 0.2% to 2061.88. Taiwan's Taiex index grew 0.8% to 9259.07. Singapore's Straits Times index shed 0.1% to 2893.65. Indonesia's Jakarta Composite index rose 0.2% to 5381.35. Malaysia's KLCI eased 0.02% to 1689.57.
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