Investors were largely sitting sideline amid continuing uncertainty over the pace of the US economic recovery and ahead of looming major political events, such as a British referendum over whether or not to remain in the European Union later this month and Japan's upper house election in July.
Japan's core private-sector machinery orders slumped 11.0% on month in April in payback for the 5.5% rise in March, the steepest contraction in almost two years and far more than the 3% dip economists were expecting. That took the year-on-year rate of contraction to -8.2%, also much more than the 1.8% fall economists were expecting.
In China, the latest data showed that consumer inflation rose less than forecast in May as pressure from high food prices eased. The consumer price index (CPI) rose 2% in May, compared with a 2.3% increase in April. The producer price index (PPI) fell 2.8% in May, easing from a 3.4% drop in April, and rose 0.5% month-on-month.
Oil prices fell into the red on Thursday, as traders took profits following a few positive sessions. Brent and U.S. crude were both off 1% or more each at Europe's close, trading at $52.03 and $50.70 respectively.
Among Asian bourses
Nikkei ends 0.97% down
The Japan share market finished lower, as selloff was triggered by a strengthening yen and gloomy Japanese machine order data for April. The 225-issue Nikkei average advanced 162.51 points, or 0.97%, to end at 16668.41. The Topix index of all first-section issues dropped 13.56 points, or 1%, to 1337.41. Falling stocks outnumbered advancing ones on the Tokyo Stock Exchange by 1298 to 562 and 137 ended unchanged. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was up 1.64% to 26.66.
Shares of exporters retreated, weighed by yen appreciation against greenback. A stronger yen is generally a negative for exporter as it reduces overseas profits when converted into local currency. Toyota shares slumped 1.37% to 5,603 yen and Nissan tanked 2.50% to end at 1,051 yen. Other exporters were also down, with China-reliant industrial robot maker Fanuc falling 1.08% to 16,810 yen.
Toyota shares slumped 1.37% to 5,603 yen and Nissan tanked 2.50% to end at 1,051 yen. Other exporters were also down, with China-reliant industrial robot maker Fanuc falling 1.08% to 16,810 yen.
Australian Market ends softer
Australian share market ended lower, as weakness among the big banks, healthcare, and telecom offset gains in energy and mining shares. At close of trade, the benchmark S&P/ASX 200 index declined 8.10 points, or 0.15%, to 5361.90. The broader All Ordinaries de-grew 3.70 points, or 0.07%, to 5437.40.
Shares of banks and financial companies traded lower, with Commonwealth Bank down 0.9% to A$76.30, ANZ Banking Group down 0.9% to A$254.50, Westpac Banking Corp down 0.9% to A$30.33, and National Australia Bank down 0.2% to A$26.41.
Shares of materials and resources players advanced, on the back of higher commodity prices, led by further gains in oil prices above US$51 per barrel. Base metal and iron ore prices also moved higher overnight. Among the big miners, BHP Billiton added 0.4% to A$19.61 and Rio Tinto rose 0.6% to A$45.44. Iron ore miner Fortescue was up 3.5% to A$3.27. Energy shares also gained ground, with Santos adding 1.5% to A$4.81 and Origin rising 0.8% to A$6.
Indian market slides as crude boils
Negative cues from global markets and concerns arising from higher global crude oil prices pulled Indian stocks lower. The barometer index, the S&P BSE Sensex, fell 257.20 points or 0.95% to settle at 26,763.46. The Nifty fell 69.45 points or 0.84% to settle at 8,203.60.
The recent run up in crude oil prices has sparked concerns of its adverse impact on India's macroeconomic fundamentals. Until recently, lower global commodity prices led to optimism regarding India reining in its fiscal and current account deficit. With India importing about 80% of its crude requirements, there are now concerns that higher crude oil prices will result in widening of India's current account and fiscal deficit and increase fuel price inflation.
Brent for August 2016 settlement was current off 55 cents to $51.96 a barrel. The contract had risen by $1.07 a barrel or 2.08% to settle at $52.51 a barrel yesterday, 8 June 2016. Prices rose overnight amid ongoing supply outages in Nigeria and a weaker dollar.
Index heavyweight and IT major Infosys dropped after the company's chief operating officer UB Pravin Rao was quoted as saying yesterday, 8 June 2016, that the company would face volatility in revenue over the next few quarters. Stocks of public sector banks extended their recent gains triggered by media reports that the Reserve Bank of India may ease bad-loan recognition norms for lenders. Dr Reddy's Laboratories edged lower on reports that the US Consumer Product Safety Commission has sought civil penalty against the drug maker for alleged violation of provisions related to child resistant packaging.
Shares of oil exploration and production (E&P) gained as crude oil prices rose. BPCL edged higher after the Reserve Bank of India (RBI) raised the ceiling on investment in the company's shares by foreign institutional investors (FIIs) to 49% of the company's equity from earlier 24%.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 lost 0.3% to 6970.55. South Korea's KOSPI index fell 0.1% to 2024.17. Malaysia's KLCI dropped 0.4% to 1650.51. Indonesia's Jakarta Composite index dropped 0.8% to 4876.79. Singapore's Straits Times index fell 0.7% to 2843.80. Markets in Hong Kong, China and Taiwan were shut for a national holiday
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
