Headline shares of the Asia pacific share market closed mixed after trimming losses late afternoon on Tuesday, April 16, 2013, as bargain hunters began buying following steep selloff yesterday. The MSCI Asia Pacific Index was down 0.2%, a second day of losses, paring losses of as much as 1% earlier.
Regional bourses begun today's trading with pessimistic note as weak economic data from the world top two economies, steep pullback in commodity prices, and big losses on Wall Street overnight shook investors. Meanwhile a deadly bombing in the U.S. also rattled confidence.
Market participants are now turning attention to Germany's ZEW economic sentiment indicator to gauge the economic development in Europe's largest economy.
Global market had suffered heavy selloff on Monday after latest Chinese economic data renewed worries about the strength of China's economy at a time when U.S. economic data has disappointed and Europe remains embroiled in its government debt crisis.
The National Bureau of Statistics said on Monday that growth in the world's second-largest economy slowed to 7.7% in the first quarter from 7.9% in the final quarter of last year. Industrial output growth decelerated to 8.9% year on year in March, down from 9.9% in February. Retail sales also disappointed, with growth at 12.6% year on year in March, suggesting cautious households are being slow to support the government's goal of raising domestic consumption.
Also Read
On top of the disappointing data from China, economic figures on Monday showed a drop in US homebuilder confidence. A separate report showed weak manufacturing in the Northeast. On Friday, the Commerce Department said retail sales fell 0.4% in March from the previous month, reinforcing views that the U.S. recovery is losing some steam.
Market participants are now turning attention to Germany's ZEW economic sentiment indicator to gauge the economic development in Europe's largest economy.
In the Asia Pacific market, the Australian share market ended the day tad softer after recovering most of initial loses, with losses in miners and energy heavyweights were somewhat offset by gains in realty and utilities stocks. The benchmark S&P/ASX200 index dropped 17.10 points from prior day to finish at 4950.80, while broader All Ordinaries index lost 22.70 points to close at 4944.10.
Minutes of the April Monetary Policy Meeting of the Reserve Bank Board noted that the outlook for inflation, as currently assessed, would provide scope for further easing should that be necessary to support demand. The central bank noted that recent data suggested that interest-sensitive parts of the economy were responding to the historically low levels of rates and it remained likely that this had further to run. At the same time, the factors weighing on the economy - including the high exchange rate, the waning growth of mining investment, and fiscal consolidation - were likely to persist. The key issues were what the balance of these factors would turn out to be. With growth forecast to be a little below trend in 2013, and inflation close to target, members judged that it was appropriate for the stance of policy to be accommodative.
New Zealand shares fell, as weaker economic data from China and the US weighed on equity markets and commodity prices. OceanaGold, NZ Oil & Gas and Fonterra Shareholders Fund were among decliners. The NZX 50 Index fell 26.87 points, or 0.6%, to 4427.83. Within the index, 30 stocks fell, 11 rose and nine were unchanged.
Tokyo share market also ended tad softer, as bargain hunters began buying after Nikkei Stock Average approached near to 13,000 marks early today. the Nikkei Stock Average down by 54.22 points to end the day at 13,221.44, while broader Topix index lost 14.79 points to 1119.20. The Nikkei Stock Average touched an intraday low of 13,004.46 in morning trade on tracking overnight losses on overseas markets as well as a pause in the yen's decline. Investors were also discouraged because of explosions at the Boston Marathon and the uncertain outlook of North Korea's behavior.
Export-related stocks hat hard in Tokyo after the dollar's dip below 96-yen overnight and remained at lower 97 yen level Asian trade. Sony Corp sank 4.1% to 1590 yen, Canon Inc 1.8% to 3610 yen, Hitachi 2.5% to 597 yen, and Bridgestone Corp 1.8% to 3625 yen. In the auto sector, Honda Motor Co erased 1.7% to 3820 yen and Toyota Motor Corp 3.5% to 5450 yen. Shares of wireless telecom Softbank Corp plunged 6.8% to 4365 yen after Dish Network Corp topped its bid for U.S. peer Sprint Nextel Corp.
China share market closed higher after recouping initial losses, with the benchmark Composite Index bounced 0.6% to 2,194.85, registering first gain in four days in row. Investors chased for bottom fishing after the benchmark indices fell to lowest level for the year early today amid worries about the recovery of the world's second-largest economy. The measure lost approx 11% from a Feb. 6 high amid concern steps to cool property prices will drag on economic growth.
Hong Kong market ended lower, registering third day of straight fall, hit by risk off selling after weak Chinese economic growth (GDP) figures, falling commodity prices and big losses on Wall Street shook investors. A deadly bombing in the U.S. also rattled confidence. The benchmark Hang Seng index dropped 100.64 points or 0.46% from previous session to finish at 21,672.03 on trading turnover of HK$62.80 billion.
Singapore shares were also firmer, with the Straits Times Index was trading 0.3% higher in afternoon, led by Keppel REIT after posting a 7.6% rise in its first-quarter distributable income. Keppel REIT said its first quarter distributable income rose to S$52.2 million ($42.2 million) compared with a year earlier, boosted by property income from higher occupancies in its Singapore and Australia properties.
Indian shares were trading higher around afternoon, led by banks and oil companies as lower global commodity prices boosted expectations of lower costs and a cut in interest rates. The Bombay Stock Exchange S&P BSE Sensex index was up 1.3% at 18598 points.
Elsewhere, Indonesia's Jakarta Composite added 0.7%, Malaysia's KLSE Composite rose 0.1%, and Taiwan's Taiex rose 0.5%. South Korea's Kospi Index ended 0.1% higher after sliding as much as 1.2% earlier.
Powered by Capital Market - Live News
