Asia Pacific share market mostly down on Thursday, 22 December 2016, mirroring the fall of US stocks overnight and softer crude oil prices. Risk sentiments were also downbeat on caution ahead of the release of U.S. economic data later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan erased modest early gains to slip 0.7% as of 0935 GMT.
Investors are waiting for a range of economic indicators, including the third revision of U.S. third-quarter gross domestic product, to gauge the strength of the world's largest economy. Durable goods orders for November and weekly initial jobless claims are also scheduled to be released.
Among Asian bourses
Nikkei falls on profit taking
The Japan share market declined, as profit taking continued on tracking the fall of US stocks overnight as well as lower oil prices. The 225-issue Nikkei average shed 16.82 points, or 0.09%, to end at 19,427.67. The broader Topix index of all first-section issues fell 0.07%, or 1.12 points, to 1,543.82. For the week, Nikkei average was up 0.13% while the Topix index fell 0.44%. Financial markets are closed on Friday or a national holiday.
Financials faced fresh pressure as Italy's ailing banking sector buckles under billions of dollars of bad loans, which many fear could collapse, sending shockwaves through global markets. Even the Italian parliament's approval of a 20 billion euro ($20.9 billion) support package was not enough to soothe nerves. In Tokyo, banking giant Mitsubishi UFJ Financial fell 0.49% to 745.3 yen while Sumitomo Mitsui Financial sank 0.69% to 4,603 yen.
Exporters were mixed on following the falls in the key U.S. market gauges. Japan Display declined 4.64% to 349 yen, while NEC was down 1.90% at 309 yen and Olympus lost 5.07% to end at 3,925 yen. But Honda rose 1.21% to 3,570 yen after it said it was in talks with a Google spin-off to jointly develop self-driving technology.
Australia Market extends gain for fourth day
Australian share market finished session at a new high for 2016 today, as the banks continue to find buyers, offsetting losses in healthcare stocks, with local investors shrugging off a fall in Wall St futures. The S&P/ASX 200 index entered its fourth straight day of gains, up 0.38%, or 21.12 points, at 5,634.47. Rising stocks outnumbered declining ones on the Australia Stock Exchange by 566 to 426 and 315 ended unchanged. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 3.01% to 10.217 a new 52-week low.
Financial stocks, which have been beneficiaries of the rally sparked by Donald Trump's election as US President, led the gains with the benchmark financial index up for a fifth straight, hovering around over 16-month highs. The big four banks powered the day's gains. Commonwealth Bank closed 60 cents higher at A$82.69, ANZ rose 42 cents to A$30.72, National Australia Bank gained 24 cents to A$30.80 and Westpac advanced 20 cents to A$32.68.
Sentiment was also buoyed by iron ore recovering from its 5-day slide, ending higher on Wednesday and copper holding steady on the London Metal Exchange. Fortescue Metals, which has had a phenomenal run this year, gained 1.9% while Rio Tinto rose 0.7%. However, BHP Billiton, which has significant oil exposure, shed 1.4% as oil prices fell on Wednesday on news of rising crude inventories in the United States and Libya expecting to boost production.
Oil and gas producers were mixed after global oil prices fell overnight on news Libya plans to boost oil production and US crude oil inventories showed a surprised lift its stockpiles. Brent crude oil dropped 1.6% to $US54.49 a barrel. Woodside Petroleum rose 36 cents to A$31.40, Oil Search climbed 5 cents to A$6.93, while Santos eased 5 cents to A$3.92. Fuel retailer and supplier Caltex Australia dropped 36 cents to A$30.45 after it announced a A$325 million deal to buy Kiwi fuel retailer Gull New Zealand.
China Stocks mixed
Mainland China stocks were little changed, as strength in shares of state-owned enterprises (SOE) was offset by persisting tight liquidity in the wake of a bond scandal. The Shanghai Composite Index rose 0.07% to 3,139.56, reversing an earlier decline of 0.34%. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.13% to 1,993.37. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, dropped 0.27% to close at 1,986.27 points.
Markets sentiments were dampened by news the insurance regulator was making it much harder for insurers to get new licences, in the latest move to rein in some insurers' aggressive stock investments that have raised concerns. A recent bond scandal also weighed on sentiment after China's central bank asked its branches to look into entrusted bond holding agreements between some commercial banks and non-financial firms.
Property stocks fell after President Xi Jinping said China's approach to regulating its red-hot property market would include financial, fiscal, tax, land, and regulatory measures as Beijing looks to develop a long-term mechanism for an industry prone to speculation.
Energy shares received a boost from index heavyweight PetroChina Co Ltd, which climbed to a nearly one-year intraday high on restructuring hopes.
Hong Kong Stocks slip on profit taking
The Hong Kong stock market closed lower, as investors elected profit taking before the Christmas and New Year holiday season. Meanwhile, weakness in mainland bourses also weighed down sentiments. Nearly all sectors retreated, with financial stocks among the biggest decliner. Hong Kong's benchmark Hang Seng Index closed 0.8% lower at 21,636.20. The Hang Seng China Enterprises Index, known as the H-shares index, fell 1.41% to 9,200.24. Turnover increased to HK$50.2 billion from HK$47.6 billion on Wednesday.
The gauge has slumped more than 10% since its Sept. 9 high as rising funding costs in Hong Kong and the mainland weighed on property developers and a weakening yuan turned investors off Chinese assets. The Hang Seng Index has declined 5.1% in December and lost 7.1% in the fourth quarter, while it's down 1.3% this year.
Market heavyweights were lower. China Mobile (00941) slid 1.04% to HK$80.9, while Tencent lost 0.38% to HK$181.50 and HSBC (00005) dipped 0.87% to HK$62.55.
Chinese insurers were pressured on news that China Insurance Regulatory Commission will tighten new license issuance. CPIC (02601) plunged 3.06% to HK$26.95. China Life (02628) fell 1.72% HK$20.05. PICC P&C (02328) dropped 1.64% to HK$11.98, while China Taiping (00966) sank 1.88% to HK$15.68.
Bohai-Rim Steam-Coal Price Index continued its losses. China Shenhua (01088) dropped 3.1% to HK$14.38, making itself the top blue-chip loser.
Indian Indices settle below key psychological levels
Gravity gripped Indian bourses for the seventh straight trading day today. The barometer index, the SandP BSE Sensex, dropped 262.78 points or 1% at 25,979.60. The Nifty 50 index shed 82.20 points or 1.02% at 7,979.10. The Sensex settled below the psychological 26,000 and Nifty ended below the crucial 8,000 level.
Shares of metal and mining companies fell after copper prices declined in the global commodities market. Hindalco Industries (down 4.41%), Vedanta (down 4.14%), National Aluminium Company (down 4.19%), Jindal Steel and Power (down 4.95%), Steel Authority of India (down 2.73%), Tata Steel (down 2.69%), Hindustan Copper (down 2.67%), NMDC (down 2.42%), Hindustan Zinc (down 2.43%), Bhushan Steel (down 0.36%) and JSW Steel (down 1.76%), edged lower. Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2017 delivery was currently down 1% at $2.4720 per pound on the COMEX.
Cement stocks also suffered losses in weak market. Shree Cement (down 4.8%), ACC (down 0.87%), Ambuja Cements (down 1.01%), and UltraTech Cement (down 1.25%) declined. Grasim Industries declined 1.2%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
TCS shed 0.13% after the company announced that London Mutual Credit Union (LMCU) implemented the migration of their technology platform to run on TCS BaNCS on the Cloud to redefine customer experience.
Sun Pharmaceutical Industries slipped 0.85% after reports that the company has signed an agreement between subsidiaries of both the companies and will close following anti-trust clearance and further closing conditions. The agreement has been signed for an upfront payment of $175 million and additional milestone payments.
Singapore shares extend losses
Singapore share market retreated, following losses in the United States and lower crude prices. The benchmark Straits Times Index (STI) slid 19.66 points, or 0.68%, to 2,882.04.
The drop in crude prices weighed heavily on oil and gas-related plays. Rig-builder Sembcorp Marine sank 5.5 cents, or 3.9%, to $1.365, while parent company Sembcorp Industries lost five cents, or 1.7%, to $2.87.
Keppel Corporation slipped seven cents, or 1.2%, to $5.83. This was despite news that its unit Keppel Infrastructure Holdings has been named the preferred bidder by national water agency PUB to build and operate Singapore's fourth desalination plant for a concession period of 25 years.
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