Asia Pacific share market declined on Monday, 15 September 2014, , as risk aversion selloff triggered after slew of weaker-than-expected China's activity data (industrial production, retail sales, and fixed asset investment) in August and on caution ahead of the US Federal Reserve two-day policy meeting starting tomorrow. The MSCI Asia Pacific excluding Japan Index dropped 1.1% to 495.18.
Regional stocks commenced trading with soft note today, on tracking a weak lead from offshore after Wall Street fell on Friday. Meanwhile, selloff pressure intensified after disappointing China factory production, retail sales and asset investment data released over the weekend raised concerns about the pace of economic growth in the world's second-biggest economy.
The China's National Bureau of Statistics (NBS) said on Saturday, 13 September 2014, that the total value added of the industrial enterprises above designated size was up by 6.9% year-on-year in August, lower by 2.1 percentage points than that in July 2014 and, a lowest level since the global financial crisis. From January to August, the total value added of the industrial enterprises above designated size was up by 8.5%.
Also, NBS said on Saturday, 13 September 2014, the investment in fixed assets (excluding rural households) reached 30,578.6 billion yuan during January to August 2014, up by 16.5% year-on-year in nominal terms, but dropped by 0.5 percentage points over that in the first six months. In August, the investment in fixed assets (excluding rural households) increased 1.23% month-on-month.
The NBS said on Saturday, 13 September 2014, the total retail sales of consumer goods reached 2,113.4 billion yuan, up by 11.9% year-on-year. From January to August, the total retail sales of consumer goods reached 16,610.8 billion yuan, up by 12.1% year-on-year.
Meanwhile, investors risk sentiments also dented amid concerns about the early rate hike from the Fed. Improving U.S. retail sales and consumer confidence have fuelled expectations that the Fed will emphasize the strengthening economy as a precursor to an earlier-than-expected interest-rate hike. The Fed meeting concludes late Wednesday with a summary of economic projections and a press conference by Chairwoman Janet Yellen.
Among Asian bourses
Weak global cues dents Aussie shares
Australian share market ended lower, as risk aversion selloff continued after disappointed China's industrial production figures and on caution ahead of the highly anticipated meeting of the United States Federal Reserve Open Market Committee later in the week. All the 10 ASX sectors declined with shares of realty, financial, material, energy, and industrial companies being major losers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each declined by 1% to 5473.50 points and 5475.40 points, respectively. Turnover was relatively healthy with 2.17 billion shares worth of A$4.02 billion traded today.
Materials and resources stocks stumbled as iron ore and base metal prices declined after disappointing Chinese industrial production data. Resources giant BHP Billiton sank 0.4% to A$35.64, while main rival Rio Tinto was down 0.4% to A$61.66. Iron ore miner Fortescue Metals Group added 0.5% to A$3.96 as the Australian dollar dropped to a fresh six-month low of US$0.8984, cushioning the impact of weak China economic data over the weekend.
Rare earths miner Lynas Corp shares fell 13.3% to A$0.13 as talks with Japanese investment bank Nomura to refinance a US$325 million debt package hit the wall.
Arrium trading was halted for an equity capital rising of A$754 million A to pay down debt, amid falling iron-ore prices.
Shanghai Composite ends at fresh 18-month high on stimulus bets
Mainland China share market closed higher after reversing earlier losses, as the latest disappointing economic data reinforced speculation that Beijing could generate more economic stimulus measures. The nine out of ten SSE sectors advanced, with shares of energy, material, technology, telecom and consumer goods companies being major gainers. The benchmark Shanghai Composite advanced 7.19 points to finish at 2339.14, marking its highest closing level since March 6, 2013, when it closed at 2347.18. The CSI 300 index declined 1.17 points to 2437.19.
Coal miners strengthened on hopes that a sector-wide production cutback will help arrest the slide in coal prices. Shanxi Antai Group rose by its 10% daily upside limit to 3.55 yuan, Datong Coal Industry gained 4.9% to 6.66 yuan and Shaanxi Coal Industry added 4.1% to 4.80 yuan.
Sinopec share ended 0.7% lower at 5.60 yuan as profit taking after it announced plan on Sunday to sell a nearly 30% stake in its sales-and-marketing unit to 25 investors in a deal worth 107.1 billion yuan ($17.5 billion), as Beijing continues to inject private capital into state-owned enterprises to boost returns and efficiency. Expectations of a share sale have fuelled a 29% rise in Sinopec's stock price so far this year.
Hang Seng falls for seventh day
Hong Kong share market finished sharply lower, as risk aversion selloff flared after slew of weaker-than-expected China's activity data (industrial production, retail sales, and fixed asset investment) in August and on caution ahead of the United States Federal Reserve two-day policy meeting starting tomorrow. The Hang Seng Index ended 238.33 points, or 0.97%, down at 24356.99. The benchmark index has fallen for seven consecutive trading days, losing a total of 962 points during the period. Market turnover rose to HK$66.64 billion from HK$61.17 billion on last Friday.
Shares of Macau gaming players fell, dragged by SJM's (00880) staffs taking to the street again. The staffs sought to improve their wage and benefits. Galaxy Ent (00027) dipped 3% to HK$52.3. Sands China (01928) slipped 1.4% to HK$46. SJM declined 2% to HK$17.68.
Shares of Sinopec plunged 6.8% to HK$7.25, the worst performing blue chip today, after the company announced to sell 29.99% stake in Sinopec Marketing to 25 investors for RMB107 billion. Yizheng Chemical (01033) soared 80.2% to HK$3.19 after Sinopec has agreed to inject oil engineering assets into the company.
Sensex ends below 27000 level
Indian stock market ended lower on heavy selling by funds and retail investors after weak industrial output data raised doubts about economic recovery. The 30-share BSE index Sensex plunged 244.48 points to end at 26816.56 and the 50-share NSE index Nifty fell 63.50 points to end at 8042.
On Friday, the government released Index of Industrial Production (IIP) and Consumer Price Index (CPI)-based inflation data. IIP rose 0.5% in July as compared with 3.9% in the previous month, the slowest in four months, data released by the statistics office showed. CPI inflation slowed to 7.8% in August from nearly 7.96% in the previous month. Wholesale price inflation shrank to 3.74% in August, its lowest level since October 2009, as compared with 5.19% in July.
Investors were, however, cautious ahead of the Supreme Court verdict on coalfield allocations, which may come any day before 27 September. The apex court had ruled on 25 August that all coal block allocations since 1993 are illegal.
Metal shares closed lower after disappointing factory production data from China, which signalled the slowdown in the world's second biggest economy is deepening. Bhushan Steel fell 5% to Rs.128.25, Jindal Steel and Power fell 4.72% to Rs.225, Coal India fell 1.66% to Rs.352, Sesa Sterlite fell 1.86% to Rs.285.10, JSW Steel fell 1.54% to Rs.1,326, NMDC fell 1.22% to Rs.174.30.
Mastek ended at Rs.272.25, up 16.10% after it said that it will demerge its insurance product and services business in to a separate listed company to be named as Majesco.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index declined 0.06% to 9217.46. South Korea's KOSPI index dropped 0.3% to 2035.82. Singapore's Straits Times index was down 0.99% to 3312.47. Malaysia's KLCI has lost 0.45% to 1847.30. New Zealand's NZX50 dropped 0.25% to 5210.86. Indonesia's Jakarta Composite index added 0.02% to 5144.90. Japanese markets are closed for a holiday.
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