MSCI's broadest index of Asia-Pacific shares outside Japan declined 1.1% to 460.09, heading for its lowest close since Dec. 20.
Investment rationale turned bearish across the regional bourses after official data showed growth in China's services sector fell to a four-month low in December as business expectations dropped, adding to evidence that the world's second-largest economy lost steam into the close of 2013.
The official purchasing managers' index (PMI) for the non-manufacturing sector dropped to 54.6 in December from November's 56, the National Bureau of Statistics said on Friday. A separate PMI survey of the services industry by Markit Economics and HSBC will be released on Jan 6. That survey covers smaller, private firms than the official PMI.
The services PMI followed two manufacturing PMIs out this week that showed growth in China's factories slowing in December as export orders weakened. The manufacturing Purchasing Managers' Index compiled by HSBC and Markit (released on Thursday) stood at 50.5, unchanged from the initial flash reading released earlier last month, but lower than the final November print of 50.8, indicating weakness in the Chinese manufacturing sector. The moderation of December's final HSBC China Manufacturing PMI was mainly due to slower output growth. The HSBC report came one day after the official Purchasing Managers' Index (PMI), published by the National Bureau of Statistics, dipped to 51.0 in December from November's 51.4, as export orders and output weakened.
Adding to downward pressure were losses on Wall Street, where the Dow and S&P 500 slipped after end 2013 at record highs, while the Nasdaq fell from its strongest level of the year. The decline in US market came on speculation speculation of more rapid tapering from the Fed after manufacturing grew in December at the second-fastest pace in more than two years, fueled by a gain in orders that will help propel the U.S. expansion.
The Institute for Supply Management's factory index eased to 57 from the prior month's 57.3, which was the highest since April 2011, the Tempe, Arizona-based group said today. Readings above 50 indicate growth. Other data showed construction spending rose more than forecast in November and jobless claims declined last week.
Among Asian bourses, markets from Shanghai to Sydney all finished in the red. Singapore share market marking their first losses in 10 sessions, while Thai market extended their slide to new 16-month lows. Japanese markets are closed for a holiday. Global equities soared by about $9.6 trillion in 2013 as central-bank stimulus helped the U.S. economy gain momentum and Europe recover from its longest recession.
In Australia, shares of the Australian financial market declined, with the benchmark S&P/ASX 200 Index falling 0.33% to 5350.10, as investors chalked up to profit taking following solid gains in 2013. The benchmark index posted 15% annual gain in 2013. Nearly every sector moved lower today with the exception of the gold, realty and healthcare sectors which were slightly higher.
Metals and mining was the worst-performing sector in Sydney bourse, with BHP Billiton falling 1.1% to A$37.77 and Rio Tinto loosing 0.5% to A$68.36. Fortescue Metals lost 1.9% to A$5.82. Oz Minerals was weaker by 0.3% to A$3.25.
Shares of gold-mining companies advanced, after gold prices rose on Thursday after losses in the prior two sessions. The Comex gold futures price was up 0.9% to US$1,225.20 per ounce. Newcrest Mining added 2.60% to A$8.67, Evolution Mining 1.53% to A$0.67 and Kingsgate Consolidated 6.31% to A$1.095.
Upscale retailers extended their weakness, with Harvey Norman Holdings erasing 0.9% to A$3.16 and Myer Holdings erasing 1.09% to A$2.73. Grocers were mixed, with Wesfarmers falling 0.16% to A$43.98 while Woolworths adding 0.33% to A$34.
Energy stocks were mostly lower after crude oil prices dipped over the week following news Libya is due to re-open a major oilfield increasing global supply. Santos lost 0.8% to A$14.56, while Australia's biggest oil producer Woodside Petroleum, dropped 1.1% to A$38.13. On Thursday the company announced it had lost a multibillion dollar contract to sell 1.5 million tonne a year of liquefied natural gas to Japan. Aurora Oil and Gas was unchanged at A$2.98 after reducing its cost estimates to develop shale wells in Texas, while increasing the number of wells it plans to drill and predicting a more than 50% production increase in 2014.
Cabcharge dropped 3.5% to A$3.87 after the Victorian Taxi Services Commission announced on Thursday that the surcharge for paying a taxi fare by credit or debit card in the state will be halved from 10% to 5% from next month.
Telstra Corporation rose 0.2% to A$5.27. It has been reported Telstra is one of a number of major international telcos that has had high level talks with Google about participating in a proposed global balloon WiFi network.
Rupert Murdoch's 21st Century Fox (FOX) announced the sale of its 47% stake in Star China TV which operates three Mandarin TV stations, for an undisclosed sum. FOX shares rose 0.7% today to A$38.97.
The world's largest money manager BlackRock emerged today as a new substantial shareholder of mining services company Forge Group (FGE), explaining the company's recent share price hike. FGE fell 6.6% today to A$1.42.
In China, shares in the China's financial market extended falling streak on Friday, January 03, 2014, as risk off selling intensified on evidence that the world's second-largest economy lost steam into the close of 2013. The benchmark Shanghai Composite index declined 26.25 points to finish at 2083.14, while the CSI 300 Index dropped 31.20 points to close at 2290.78.
Among SSE sectors, nine out of ten sectors of the SSE index declined, with financial sector was worst performer amongst the SSE sectoral peers, falling 2%.
Most of the sectoral heavyweights declined, with shares in financials and industrials companies leading losses. Citic Securities, China's biggest listed brokerage, fell 2.9% to 12.23 yuan. China Life, the nation's biggest insurer, lost 2.6%. SAIC, China's largest carmaker, slumped to 13.45 yuan. Hisense Electric, the country's biggest manufacturer of flat-panel televisions, retreated to 10.97 yuan.
Shares of rare-earth makers were up on reports State Council approved a plan to set up large rare-earth groups that will get government policy support. Baotou Rare-Earth rose 3%. China Minmetals Rare Earth Co. gained 3.2%. Rising Nonferrous Metals Share Co. added 1.5%.
In Hong Kong, shares in HK market retreated as risk aversion selloff after a gauge of China's services industries fell to a four-month low. The benchmark Hang Seng Index provisionally ended 522.77 points lower at 22817.28, while Hang Seng China Enterprises Index fell 272.58 points to 10436.76.
Among the HK 50 blue chips, All but one of the blue chips fell. Mainland lenders led the slide. ICBC dropped 2.7% to HK$5.06, while Agricultural Bank of China, the nation's third-biggest lender, retreated 2.9% to HK$3.67. CM Bank (03968) fell 3.2% to HK$15.74.
Insurers and brokerage players were also lower. China Life (02628) slipped 3.4% to HK$23.05. Citic Sec (06030) and Haitong Sec (06837) retreated 4.7% and 3.1% to HK$20.45 and HK$13.04.
Coal stocks went lower after Jefferies Hong Kong Ltd. said benchmark Qinhuangdao coal prices may collapse. China Shenhua Energy Co, the nation's biggest coal producer, dropped 4.4% to HK$22.85 and Yanzhou Coal Mining Co. fell 3.9% to HK$6.36.
Shares of precious metal miners rose on the back of rebound in bullion prices in the international market overnight. Gold climbed as much as 1.2% to $1,238.93 an ounce on speculation demand for the haven asset will increase in Asia. Zhaojin Mining gained 2.6% to HK$4.67, while Zijin Mining Group Co, China's largest producer of the precious metal, climbed 2.4% to HK$1.72.
Belle International slumped 5.1% to HK$8.54 after Sunwah Kingsway cut its price target 16% to HK$9, citing adverse impact from counterfeit products and unauthorized dealers.
Land Registry today announced that the number of sale and purchase agreements for all building units received for registration in December was 6,003, an increase of 18.6% from November but down 34.2% from a year earlier. The 12-month moving average for December was 5,875, 4.3% below the 12-month moving average for November and 39% below that for the same month last year. The total consideration for sale and purchase agreements in December was HK$53.7 billion, up 23.7% month-on-month and up 29.1% year-on-year. Among the sale and purchase agreements, 4,667 were for residential units, an increase of 23.1% from November and up 42% from a year ago. The total consideration for sale and purchase agreements in respect of residential units was HK$35 billion, up 15% from a month earlier and up 103.7% over the same period last year.
In Thailand, shares in Thai market extended losses, with the Thai SET index down 0.4% at 1,226.48. It earlier hit 1,208.60, the lowest since August 2012, as investors sold off large caps and tourism-related stocks such as Thai Oil and Central Plaza Hotel.
The Thailand benchmark index ended the week nearly 6% lower, the worst week since August 2013, after Thursday's selloff that wiped more than 5% off the gauge amid escalating political tensions at home.
Anti-government protesters have planned mass rallies to shut down Bangkok on Jan. 13, calling for a postponement of the Feb. 2 polls and paving the way for a political reform. The red-shirt United Front for Democracy against Dictatorship said on Thursday it would also stage a mass rally to counter the planned anti-government demonstrations.
In Malaysia, shares in Kuala Lumpur market eased, on fund selling of last year's favorites including Petronas-linked stocks. The benchmark KLSE Composite index was down 1% to finish at 1834.74.
At Bursa Malaysia, Tenaga Nasional wiped out 2.02 points from the KLCI when it fell 18 sen to RM11. SapuraKencana Petroleum lost 16 sen to RM4.57 and erased 1.96 points. Genting Bhd shed 16 sen to RM10.08. Petronas Dagangan fell the most, down 58 sen to RM30.40 and Petronas Gas 22 sen lower at RM23.60.
In Singapore, shares in Singapore market fell down, snapping nine-day winning run on tracking fall in other Asian stock markets which were roiled by risk aversion. The Straits Times Index shed 1.36% to 3,131.47. The benchmark had advanced 3.7% in the previous nine sessions to a one-month high, but ended flat last year, dragged by weakness in the real estate sector.
In India, key benchmark indices fell for the third day in a row. The S&P BSE Sensex lost 37 points or 0.18% to settle at 20,851.33, its lowest closing level since 19 December 2013. The Sensex has lost 319.35 points or 1.5% in three trading days from a recent high of 21,170.68 on 31 December 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 726.60 crore from the secondary equity markets on Thursday, 2 January 2014, as per data from Securities & Exchange Board of India.
Tata Power Company and Reliance Infrastructure, both, dropped for second day in a row after the Delhi government on 1 January 2014 ordered CAG audit of their finances. Tata Power Company dropped 3.83%. Reliance Infrastructure lost 0.96%.
Just Dial jumped 7.32% to Rs 1,603.50 after hitting a record high of Rs 1,648 in intraday trade. The scrip has jumped 40.61% from a recent low of Rs 1,140.35 on 16 December 2013.
Bank stocks pivotals edged lower after Prime Minister Dr. Manmohan Singh expressed concern about the failure in controlling persistent inflation. State Bank of India declined 1.52%. AXIS Bank (down 0.95%) and ICICI Bank (down 0.75%) declined. HDFC Bank rose 0.99%. Indian Bank fell 1.79%.
Infosys rose 2.61%. The company announced after market hours that it has appointed Mr. B. G. Srinivas and Mr. U. B. Pravin Rao as Presidents of the company, reporting to Mr. S. D. Shibulal, Chief Executive Officer & Managing Director. These appointments are effective immediately. The business portfolios will be realigned under the two Presidents.
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