Asia pacific share market declined on Tuesday, 28 July 2015, echoing losses on the Wall Street overnight and concerns over China share price volatility. The MSCI Asia Pacific Index declined 0.5% to 140.26, extending its five-day fall to 3.5%.
US stocks fell overnight after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) has been scheduled on Tuesday, 28 July 2015, and Wednesday, 29 July 2015, to decide on interest rates in the United States. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
Among Asian bourses
Australia stocks end softer
The Australian share market ended softer, as losses in bullion, technology, consumer discretionary, industrial and material blue chip stocks were more than offset by gains in energy, utilities and healthcare stocks. The benchmark S&P/ASX 200 Index ended 5.20 points, or 0.09%, down at 5584.70, after having swung between a decline of as much as 1.1% and a gain of 0.3% during the course of the session. The broader All Ordinaries Index lost 8.20 points, or 0.15%, to 5571. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was up 3.1% to 16.34, suggesting a 4.5% swing in the equity benchmark index in the next 30 days.
Gold stocks handed back some of Monday's strong gains as spot prices for the metal slipped in Asia trading to remain below the psychological level of $1,100 a troy ounce. Newcrest Mining sank 2% to A$11.54, Perseus Mining lost 2.9% to A$0.33, and Regis Resources fell 4.7%.
Shares of energy players were up, with Woodside Petroleum rising 1.7% to A$34.44 and Santos adding 2.7% to A$11.45. Origin Energy gained 2.7% to A$11.45, on reports its Australia Pacific LNG liquefied natural gas joint venture with ConocoPhillips and Sinopec is firmly on track to export its first fuel in the second half of the year.
Healthcare stocks were broadly higher, buoyed by a 1.6% rise in CSL to A$96.17 after blood products maker said that the U.S. Food and Drug Administration had accepted a license application for one of its therapies for patients with haemophilia.
Myer (MYR) was up 0.8% to A$1.195 on news the department store owner will cut staff at more than half its 67 stores. Reports suggest this will be done through a voluntary redundancy program to reduce costs.
Nikkei falls on weak offshore lead
Japanese share market eased, as risk sentiment hurt by tracking losses on the Wall Street overnight and concerns over China share price volatility. However, market trimmed losses late afternoon on reports Bank of Japan share-buying. The Nikkei Stock Average declined 21.21 points, or 0.1%, to end at 20328.89 points. The broader Topix index lost 0.52%, or 8.44 points, to close at 1629.46 points.
Nitto Denko fell 4.1% on reports that the company's first-quarter earnings will likely show an 19% operating profit rise on year to about 23 billion yen, casting doubt over whether the firm can achieve its own 52 billion yen forecast for the first half of the current business year.
Stanley Electric added 7.5% after lifting its full-year sales estimate by over 4% to 392 billion yen. The Company reported a first-quarter operating profit of 9.2 billion yen.
Canon added 0.2% after the firm lifted its full-year sales projection by 70 billion yen, or 5.4% on year, to 3.93 trillion yen. The electronic maker posted operating profit fall of 5.3% to 104.7 billion yen for June quarter.
China market extends losses
Mainland China's stock market ended lower for a third-straight day in volatile trade, despite an unprecedented effort by the government of the world's second largest economy to shore up prices following a month-long rout. The benchmark Shanghai Composite Index ended 62.56 points, or 1.68%, down at 3663 points, after falling as much as 5% and rising as much as 1% earlier. The index has shed 11% since Friday and down nearly 30% from its mid-June high. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 2.24%, or 48.39 points, to 2111.70 points.
The People's Bank of China on Tuesday promised to maintain its policy stance in a rare statement. At the same time it injected CNY50 billion into the system. The PBOC's actions are being interpreted as a response to Monday's sharp share-market fall and a demonstration of Beijing's determination to support the stock market. Overall prices remain stable, the PBOC said in an early morning statement aimed at dismissing fears about a monetary-policy shift as a result of recent rising pork prices.
The Shanghai Composite Index fell 8.48% on Monday for its biggest one-day loss in more than eight years. It was mainly a result of a market rumor that China Securities Finance Corp., Beijing's main vehicle in recent stock-market intervention, had repaid some of its interbank loans suggesting an exit is on the way. The China Securities Regulatory Commission said late Monday CSFC isn't exiting the market and will continue to act as a stabilizer.
Shares of energy, industrial and technology companies dropped the most among 10 industry groups in Beijing. China Railway Group slumped 8%. PetroChina Co declined 4.2%. Hundsun Technologies Inc plunged by the daily limit of 10% for a second day
Hong Kong market ends higher
The Hong Kong stock market ended higher, as investors chased for bottom fishing on heavily battered stocks after Beijing vows to step up purchases of stocks. The benchmark opened 82 points lower and saw its losses widen to more than 200 points as the Shanghai market lost the 3,600 mark. But it quickly rebounded and soared nearly 600 points at another point. The Hang Seng Index ended 151.98 points, or 0.62%, higher at 24503.94 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, decreased 57.63 points, or 0.51%, to 11173.04 points. Turnover reduced slightly to HK$115.27 billion from HK$116 billion on Monday.
Chinese government measures to step up purchases of stocks, announced late Monday, appeared to reassure some investors. China Securities Finance Corp., a state-backed agency that provides margin financing and liquidity, hasn't exited the stock market, China Securities Regulatory Commission spokesman Zhang Xiaojun said in a statement after the close of trading on Monday.
Shares of oil majors closed higher. CNOOC (00883) gained 2.7% to HK$9.62. PetroChina (00857) added 2% to HK$7.62. Sinopec (00386) edged up 0.5% to HK$5.82.
Mainland developers were weaker. CR Land (01109) slipped 2.7% to HK$21.4. COLI (00688) fell 1.8% to HK$24.8.
Aviation counter were softer. China East Air (00670) plunged 4.4% to HK$6.6 after it placed shares at a premium price to Delta Air Lines. China South Air (01055) sank 1.4% to HK$7.86. Cathay Pacific (00293) softened 0.4% to HK$18.92.
Brokerage counters were weaker. GF Sec (01776) slid 5.7% to HK$14.32. HTSC (06886) dipped 1.3% to HK$16.14. CGS (06881) inched down 0.6% to HK$6.76.
Sensex drifts lower
Indian index heavyweight and housing finance major HDFC led losses for key benchmark indices. Shares of the housing finance major edged lower after the company reported a muted growth in bottom line in Q1 June 2015. The barometer index, the S&P BSE Sensex, was provisionally off 102.76 points or 0.37% to 27,458.62. The market sentiment was edgy after the latest data showed that foreign portfolio investors (FPIs) pressed sales of Indian stocks yesterday, 27 July 2015. Shares of upstream oil companies declined as crude oil prices declined. Most power generation stocks declined.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said yesterday, 27 July 2015, that inflation targets should not be changed every three years as that would mean changing goal posts as soon as the system starts to internalize it.
Foreign portfolio investors sold shares worth a net Rs 859.94 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 238.66 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.3% to 8582.49. South Korea's KOSPI was marginally higher at 2039.10. New Zealand's NZX50 dropped 0.4% to 5848.39. Singapore's Straits Times index declined 1% at 3281.09. Indonesia's Jakarta Composite index lost 1.2% to 4714.76. Malaysia's KLCI fell 0.6% to 1699.70.
Powered by Capital Market - Live News
