Data on Sunday showed that Chinese industrial profit dropped 1.4% last month. Japan's retail sales and industrial production released on Monday, showing Japan industrial production down 1% mom in November and retail sales down 1% yoy. Both were below expectations.
Looking ahead, US data will be the main focus in the week. Trade balance, consumer confidence, pending home sales, jobless claims and Chicago PMI will be watched but are not expected to trigger much volatility. European calendar is near empty with only M3 money supply featured. China will release PMI manufacturing on Friday, which is January 1 holiday, and that could set the tone in risk markets next week.
Among Asian bourses
Japan stocks up on easing hope
Japan share market closed higher on renewed stimulus speculation after weaker than expected Japanese industrial production and retail sales data. Total 30 out of 33 TOPIX Sector Indices advanced, with Pulp & Paper, Marine Transportation, Electric Power & Gas, Iron & Steel, and Nonferrous Metals issues being major gainer. The 225-issue Nikkei Stock Average advanced 104.29 points, or 0.56%, to 18873.35. The Topix index of all Tokyo Stock Exchange First Section issues grew 13.03 points, or 0.86%, to 1529.22.
Earlier today, official data showed Japanese industrial production data fell for the first time in three months in November. The 1% decline came after a 1.4% rise in October and was larger than median economists' expectation of 0.4% drop. Data also showed overall retail sales fell 1% year-over-year in November, the first decline in two months. The below expectations data puts more pressure for the Bank of Japan and the government to stimulate the economy.
Shares of Sharp Corp. jumped 7.3 on reports that Taiwan's Hon Hai Precision Industry, one of the largest suppliers of electronics products, proposed buying the Japanese company for 300 billion yen.
China market tumbles after weak industrial profit data
The Mainland China stock market ended steep lower, as risk sentiments hammered after weaker than expected industrial profit data for November and a looming revamp of the country's initial public offering (IPO) system. Most sectors lost ground, with industrial and banking stocks leading the decline. The Shanghai Composite Index stumbles 2.59%, or 94.13 points, to close at 3533.78. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 2.18%, or 51.35 points, to close at 2308.38. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, lost 2.12%, or 59.24 points, to close at 2735.49.
The National Bureau of Statistics said on Sunday that net profits of China's industrial companies fell 1.4% year on year in November, marking a sixth consecutive month of decline, although the figures improved from October's 4.6% fall. In the January-November period, profits of manufacturing firms totalled 5.54 trillion yuan, down 1.9% year on year while they shrank 2% in the first 10 months.
Shares of industrial and financial companies tumbled the most among SSE 10 sector indices. China Life Insurance Co., the nation's largest insurer, dropped the most in three weeks, while China Cosco Holdings Co. plunged by the maximum daily limit. China Telecom Corp. tumbled after the nation's anti-graft authority announced an investigation into the chairman of the company.
Hong Kong Market falls 1%
The Hong Kong stock market ended down, as investors opted to withdraw profit off the table on tracking heavy selloff in the Mainland A-share market after industrial companies' profits declined and the China's anti-graft authority announced an investigation into the chairman of China Telecom Corp. The benchmark Hang Seng Index declined 218.51 points, or 0.99%, to 21919.62 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 163.75 points, or 1.65%, to 9789.46 points.
Shares of energy players declined on tracking weakness in crude oil future prices. Brent crude oil prices lost 0.2% at $37.80 a barrel in Asia trade Monday, although prices found some support last week. U.S. prices rose 5.7% over four sessions. PetroChina (00857) lost 1.7% to HK$5.29. Sinopec (00386) sank 3.4% to HK$4.78 and CNOOC fell 1.2% to HK$8.31.
Shares of telecom companies tumbled, with China Telecom Corp leading losses, down 1.3% to HK$3.68, after China's anti-corruption watchdog announced on Sunday that the company's Chairman, Chang Xiaobing, is being investigated for alleged disciplinary violation. China Mobile (00941) softened 0.9% to HK$87.80. China Unicom (00762) was down 0.8% to HK$9.49.
Sensex hits 3-week high on value-buying
Indian stock market rose to highest level in more than three weeks in afternoon trade, as investors bought beaten-down stocks and ahead of the expiry of derivatives contracts later this week. At 31.25 IST, the 30-share BSE index Sensex was up 159.22 points or 0.6% at 25,997.93 and the 50-share NSE index Nifty was up 49.6 points or 0.6% at 7,910.65.
Barring metal, consumer durables and capital goods, all other BSE sectoral indices were trading in the green. Among them, healthcare index gained the most by 1%, followed by auto 0.8%, banking 0.8% and infrastructure 0.7%. On the other hand, metal index was down 1%, followed by consumer durables 0.2% and capital goods 0.1%.
Shares of ICICI Bank rose as much as 2.1%, bouncing back from a fall of 1.5% on Thursday after a central bank report raised concerns over weak corporate balance sheets and bad loans among banks.
Tata Power shares rose 2.33% after the company on Thursday signed an agreement with Russia for energy projects in the country.
Insurer Max India Ltd surged as much as 7% to its highest level since December 8 after a court approved a demerger of its business.
Bharti Airtel fell 1.6% and Idea Cellular slipped 0.8% after Reliance Industries rolled out its 4G network for employees, a move seen by many as a soft launch and precursor to full-scale launch next year. Reliance shares were up 0.63%.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.1% to 8358.49. South Korea's KOPSI de-grew 1.3% to 1964.06. Indonesia's Jakarta Composite index rose 0.9% to 4561.81. Malaysia's KLCI jumped 0.5% to 1672.38. Singapore's Straits Times index dropped 0.1% at 2874. Australia and New Zealand markets closed in observance of Boxing Day.
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