Asia Pacific share market ended mixed on Friday, 05 February 2016, on caution ahead of the closely watched U.S. jobs report, which could provide clues on the Federal Reserve's monetary policy outlook.
Risk sentiments were subdued amid speculation the U.S. Federal Reserve would hold off on raising interest rates after the head of the Dallas Federal Reserve Bank said the agency should be patient because of slowing growth and tightening financial conditions. His New York counterpart made similar statements on Wednesday.
Market attention is focused on the U.S. government's employment report for last month, which will be released later in the global day. A weaker than expected figures would add to other downbeat economic data that's been piling up in recent days, including contracting U.S. and Chinese factory activity and a disappointing U.S. service sector index. Taken together, it could all be used to support the case for the Fed putting off further interest rate hikes, a prospect that's already helped push down the dollar.
Crude Oil fell amid doubts that efforts to get oil producing countries to meet about boosting prices would succeed. Venezuela's oil minister met with his counterpart in Qatar and will meet on Sunday with his counterpart in Saudi Arabia but no nation has supported a meeting. Optimism about a meeting sparked earlier in the week by a Russian statement that Saudi Arabia had suggested a production cut have faded.
U.S. crude futures were flat at $31.73 a barrel in Asian hours, after falling 1.7% overnight. Globally traded Brent was down 0.35% at $34.37, following a 1.6% decline during U.S. trading hours.
Among Asian bourses
Australia Stocks end softer
Australian share market finished edge below neutral line on last trading session of the week, Friday, 05 February 2016, as weakness in financial and retail stocks were mostly offset by gains by the energy and miners. At the close, the benchmark S&P/ASX 200 index declined 4.20 points, or 0.08%, to 4976.20 points, while the broader All Ordinaries index fell 3.70 points, or 0.07%, to 5025.60 points.
Shares of retailers were heavily sold off as the Australian Bureau of Statistics found retail trading was flat across December pointing to a lack of confidence late in the year despite strong lead-ins in prior months. The latest Australian Bureau of Statistics (ABS) Retail Trade figures showed that Australian retail turnover was relatively in December 2015, following a rise of 0.4% in November 2015, seasonally adjusted. Woolworths closed 0.7% down at A$23.76 and JB Hi-Fi dropped 1.3% to S$22.12.
Shares of media firms retreated, with News Corp shares down 3.6% to A$17.34 after reports of sharp fall in profit and revenue, hurt by a tough print advertising market. The company flagged more cost cutting across its newspapers in the UK and Australia. Ten Network was 2.34% lower to A$1.045, while Nine Entertainment fell 5% to A$1.42.
Nikkei falls on stronger yen
Japan share market finished lower for fourth consecutive session, as risk sentiments dented after yen appreciated to mid-116 level against the greenback and crude oil prices resumed slide. Around two-third of Topix industry groups declined, with notable decliners comprised realty, financial business, bank, insurance, brokerage and construction shares. The 225-issue Nikkei Stock Average ended down 225.40 points, or 1.32%, at 16819.59. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 19.84 points, or 1.43%, lower at 1368.97.
Financial stocks declined, with realty, lender, and construction material stocks being major loser on fading Federal Reserve rate hike expectations. Mitsubishi UFJ Financial Group Inc dropped 3.5% to 538 yen, Aozora Bank 1.9% to 364 yen, Shinsei Bank 2.6% to 153 yen, Sumitomo Mitsui Financial Group Inc 3.3% to 3430 yen, Mizuho Financial Group Inc 4.6% to 182 yen, and Bank of Yokohama 2.4% to 530 yen. Taiheiyo Cement Corp fell 2.8% to 309 yen, Sumitomo Osaka Cement Co 1.8% to 446 yen, and Nippon Sheet Glass Co 3.7% to 78 yen.
Automakers dropped as the strengthening yen damped their profit outlook, with Mazda Motor Corp. sinking 4.8% to 1843 yen after reporting net income fell. Nissan Motor Co. tumbled 3.3% to 1074 yen, while Toyota Motor Corp. lost 1.9% to 6625 yen ahead of its earnings report.
Toshiba Corp. plunged 10.5% to 178 yen after widening its loss outlook to a record 710 billion yen as the industrial group continues restructuring in the wake of an accounting scandal.
China Market falls ahead of Lunar New Year
Mainland China stock market ended down ahead of the Lunar New Year, when markets will remain closed for a week starting February 8. Investors largely shrugged off government moves to raise investment ceilings for overseas investors on view it won't lead to an immediate surge in foreign buying of Chinese equities. The Shanghai Composite Index ended down 0.63%, or 17.53 points, at 2763.49. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, declined 20.97 points, or 0.7%, to 2963.79. For the week, SSEC was up 0.9% while CSI300 gained 0.6%. For the week, SSEC was up 0.9% while CSI300 gained 0.6%. Trading was thin on Friday as many traders have already left for the Lunar New Year holiday. Mainland markets will be closed all of next week.
The State Administration of Foreign Exchange has unveiled new rules on Thursday that would allow investors under the Qualified Foreign Institutional Investor scheme (QFII) scheme to buy more stocks and bonds, and make it easier for them to move money out of the country. Market expert expects the rule won't have any immediate impact on the market. Indeed, there are signs that some foreign investors are pulling money out of China's stock market, on concerns about economic growth and the value of the Chinese currency.
Shares of resources shares were firm, with top steelmakers Wuhan Steel and Baoshan Steel leading rally on expectations of industry consolidation. China will cut crude steel capacity by 100 million-150 million tonnes within the next five years in a bid to tackle a glut that has dragged prices down to multi-year lows and saddled firms with huge debts.
Hong Kong Market ends higher
The Hong Kong stock market ended higher in quiet trade on tracking positive lead from Wall Street overnight and ahead of long weekend holidays. The benchmark Hang Seng Index was up 105.08 points, or 0.55%, to 19288.17 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 80.47 points, or 1.01%, to 8054.87 points. Turnover reduced to HK$55.4 billion from HK$65.4 billion on Thursday. The local stock market will close on 8-10 February.
Shares of BEA (00023) shot up 6.2% to HK$23 becoming the top blue-chip gainer after hedge fund Elliott Management challenged its management and called on the bank to sell itself at HK$60 per share. BEA dismissed the argument as "fundamentally conflicting".
HSBC (00005) added 1% to HK$52.35. It was reportedly that the global banking giant's 28,000 staffs in the UK would enjoy wage hike this year.
Tencent (00700) gained 1% to HK$143.9. Deutsche Bank expects Tencent's 4Q total revenue to grow 30% to RMB27.3 billion.
CKH Holdings (00001) dipped 2% to HK$95.15 on market talks that EU issued statement listing potential threats to competition from CKH's proposed acquisition of 02 UK via its unit Three UK.
CR Power (00836) was the worst blue chip loser today. It slid 4% to HK$12.02 after the power producer announced to spend RMB1.09 billion to form a JV, which will develop power projects in Guangdong.
Dah Sing Financial (DSF)(00440) surged 12% to HK$42.45 on reports that AIA (01299) and China Life (02628) could be interested in its DSF's life insurance operation. Dah Sing Banking (02356) also shot up 6% to HK$12.94.
Indian indices extend gains in late trade
Stocks of public sector banks, metal and mining firms and pharma companies led the rally for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 327.92 points or 1.35% at 24,666.35, while the Nifty rose 85.10 points or 1.15% at 7,489.10, as per the provisional closing data.
Lupin jumped after the company reported strong financial performance on sequential basis in Q3 December 2015. The stock jumped 10.72% at Rs 1,829.20. Lupin's consolidated net profit rose 29.6% to Rs 529.80 crore on 5.6% growth in net sales to Rs 3357.70 crore in Q3 December 2015 over Q2 September 2015. Consolidated net profit fell 11.9% to Rs 529.80 crore on 6.8% growth in net sales to Rs 3357.70 crore in Q3 December 2015 over Q3 December 2014.
Bosch edged lower after announcing third quarter results. The stock fell fell 5.17% at Rs 16,100. The stock was volatile. The stock hit a high of Rs 17,646 and a low of Rs 16,005 in intraday trade. The company's net profit rose 99.12% to Rs 220.77 crore on 12.7% growth in total income to Rs 2786.08 crore in Q3 December 2015 over Q3 December 2014.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.26% to 6153.80. South Korea's KOPSI rose 0.1% to 1917.79. Malaysia's KLCI gained 0.34% to 1662.46. Singapore's Straits Times index added 2.5% at 2623.21. Indonesia's Jakarta Composite index rose 2.85% to 4798.95.
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