Headline equities of the Asia Pacific market mostly down on Tuesday, 03 March 2015, despite a positive cues from Wall Street overnight, as investors looking ahead to the release of China's growth target later this week.
The third Session of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC), the country's top political advisory body, started in Beijing on Tuesday and will continue with the opening of the national congress later in the week. The National People's Congress is set to begin its annual session on Thursday.
A total of 2,153 members of the CPPCC National Committee will discuss major issues concerning the country's development. The advisory body has no formal powers, although membership bestows a measure of prestige and provides ample opportunity for networking. Among this year's proposals are those calling for three years of maternity leave, the further loosening of China's birth policy, cheaper high-speed train tickets and the printing of new bank bills that would render worthless the stockpiles of cash held by corrupt officials.
China's ceremonial legislature starts its annual session on Thursday and is expected to announce a growth target for 2015. Last year's target was 7.5%, which China narrowly missed, posting growth of 7.4% that was the slowest in 24 years. There are expectations the target will be lowered to 7% this year as China manages a multiyear shift in its economy away from industrial led growth to more emphasis on consumers and services.
Among Asian bourses
Australia stocks fall after of RBA rate decision
The Australian share market ended lower, as the Reserve Bank of Australia (RBA) surprise decision to keep interest rates on hold triggered profit booking across the board, with shares of bullion, utilities, mining, property trusts and financials being major losers. The benchmark S&P/ASX 200 Index declined 25 points, or 0.42%, to 5933.90, while the broader All Ordinaries Index was down 23.40 points, or 0.39%, to 5902.90. Market turnover was relatively strong, with 1.85 billion shares changing hands worth of A$5.89 billion. Rising stocks underneath declining ones, with total of 610 stocks up, while remaining 774 down.
Australia's central bank kept its benchmark interest rate unchanged at a record low 2.25% on Tuesday to avoid stoking an overheating housing market that risks derailing a fragile economic recovery. Still, the Reserve Bank of Australia left open the option of further interest rate cuts this year as China's recent weakening hurts the resource-rich economy.
Woolworths gained 1.8% to $29.82 after selling its 8.8% stake in New Zealand retailer The Warehouse Group for NZ$86.9 million (A$84.1 million), less than half the price it paid eight years ago, after abandoning plans to enter the New Zealand discount department store sector. Woolworths said it had sold its 30.5 million shares in The Warehouse Group for $NZ2.85 a share - a slight premium to the market price of $NZ2.72 - to privately held trans-Tasman retailer James Pascoe Group.
Suncorp shares slumped 1.9% to A$13.75 after the insurer said cyclone Marcia was expected to cost the company between $120 million and $150 million in insurance claims. The cyclone, combined with last November's super storm in Brisbane, is expected to push Suncorp's annual natural hazard expenses to between $690 million and $720 million, above its yearly allowance of $595 million. Suncorp said the effect of the two natural disasters within six months would make it unlikely for the company to reach its return on equity target of 10% for the 2014-15 financial year.
Japan stocks mixed as yen strengthens
Japanese share market ended mixed after swinging between gains and losses, as strengthening greenback against the yen triggered profit booking. The Nikkei Stock Average ended down by 11.72 points, or 0.06%, to 18815.16, off an intra-day high of 18910.52 and day low of 18730.57. The broader Topix index grew by 1.86 points, or 0.12%, to 1526.83, the highest level since December 2007.
Trend Micro Inc was up 3.2% to 4.85 yen, on reports the company was seeking a $1.24 billion debt-for-equity swap as it prepares for a restructuring, "including closing four plants and exiting or selling its money-losing solar-panel business."
Alps Electric surged 5% to 2,842 yen, after Morgan Stanley raised the investment rating on the stock to overweight from equal-weight, citing continued improvement in its product mix as smartphone camera-actuator sales continue to grow.
Ono Pharmaceutical Co. jumped 11% to 13140 yen after Credit Suisse Group AG raised its investment rating on the stock.
Chugai Pharmaceutical Co rose 2.2% to 3685 yen after it and U.S.-based Athersys Inc announced a partnership to market an ischemic stroke treatment in Japan.
Sharp Corp declined 3.5% to 245 yen on a report that the struggling Japanese electronics firm will seek investment from its lenders, including a 150 billion yen ($1.25 billion) debt-for-equity swap.
NTT DoCoMo Inc rose 2.8% to 2230 yen on news it would be conducting a test of 5G wireless service with Nokia Corp.
China stocks tumble on growth woes
Mainland China share market finished the session sharply down, dragged down by profit booking across the board amid mounting worries about a slowing economy which trumped enthusiasm for the central bank's latest interest-rate cut. Meanwhile, selloff pressure intensified on concerns about increase supply of new stocks offerings and ahead of China's ceremonial legislature annual session on Thursday. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, stumbled 93.36 points, or 2.59%, to 3507.90, while the Shanghai Composite Index declined 73.23 points, or 2.2%, to 3263.05.
The securities regulator has approved initial public offering plans for 12 companies on Monday, with some analysts expecting the IPOs to lock about 3 trillion yuan ($478.10 billion) of capital next week. When the securities regulator approved the previous batch of IPOs in early February, it froze about 2 trillion yuan at one point, putting downward pressure on the stock market.
Total of nine out of ten SSE industry groups declined, with financial issue leading retreat, down by 3.7%, followed by telecommunication service (down 2.7%), energy (down 2.7%), consumer staples (down 1.9%), industrials (down 1.6%), utilities (down 1.6%), consumer discretionary (down 1.5%), material (down 0.8%), and information technology (down 0.5%).
Among the most active stocks -Bank Of China was down 3.4% to 3.97 yuan; China State Construction Engineering Corp down 2.5% to 6.22 yuan; and Agricultural Bank of China down 3.3% to 3.25 yuan. TCL Corp was down 2.5% to 5.08 yuan and BOE Technology down 2.5% to 3.10 yuan. Dongxu Optoelec was up 4.3% to 9.16 yuan.
Hang Seng falls 0.7%
Hong Kong share market finished session on a negative note, as excitement over a weekend China's interest rate cut was extinguished by worries over the release of China's growth target. The benchmark index opened 97 points higher which marked the intra-day high. It dipped in afternoon session after the Shanghai market index lost the 3300 level. The Hang Seng Index ended down 184 points or 0.7% to 24702 off an intra-day high of 24984 and day low of 24663. Turnover rose slightly to HK$79.9 billion from HK$79.7 billion on Monday.
Macau gaming authority said gross gaming revenues (GGR) in Macau plunged 48.6% to MOP19.5bn in February, the biggest decline since the data have been compiled. But casino operators were mostly higher. Galaxy Ent (00027) put on 2% to HK$40. Sands China (01928) also rose 1.7% to HK$35.9. Wynn Macau (01128), which reports earnings tomorrow, ended up 2.42% to HK$21.15. MGM China (02282) soared 3.2% to HK$18.48.
Oil majors fell on lower crude prices on woes of rising inventory. PetroChina (00857) dipped 2.1% to HK$8.76. CNOOC (00883) and Sinopec (00386) slipped 1.1% to HK$11.06 and HK$6.43 respectively.
China telecom carriers were all lower. China Unicom (00762), which reports earnings report tomorrow, ended down 2.2% to HK$12.38. China Mobile (00941) also fell 2.2% to HK$102.5. China Telecom (00728) slid 3.4% to HK$4.87.
Nifty hits record high above 9,000
Gains in IT stocks and index heavyweights Reliance Industries and HDFC led rally as 50-unit CNX Nifty hit record high above the psychological 9,000 level. As per provisional closing, the S&P BSE Sensex was up 132.71 points or 0.45% to 29,591.85. The 50-unit CNX Nifty was up 39.50 points or 0.44% at 8,996.25.
IT stocks advanced. Index heavyweight Reliance Industries (RIL) surged after the company after market hours yesterday, 2 March 2015, in a disclosure to BSE said that Life Insurance Corporation of India (LIC) has raised its stake in the company. Coal India dropped on turning ex-dividend today, 3 March 2015. L&T advanced after the company said that its construction division secured orders worth Rs 2215 crore across various business segments over the last two months.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 424.79 crore yesterday, 2 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 180.35 crore yesterday, 2 March 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.23% to 2001.38. Taiwan's Taiex added 0.05% to 9605.77. New Zealand NZX50 was up 0.02% to 5893.66. Indonesia's Jakarta Composite index fell 0.06% to 5474.62. Singapore's Straits Times index rose 0.54% at 3422.11. Malaysia's KLCI was up 0.23% to 1821.25.
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