Asia Pacific share market closed mostly lower on Thursday, 03 November 2016, with investors opting for less risky assets after Wall Street fell for a seventh straight session overnight on prospect of a hike in U.S. interest rates in December as well as volatility stemming from a tense U.S. election campaign.
The Federal Reserve kept interest rates unchanged on Wednesday, but said the economy had gained steam and job gains remained solid, expressing more optimism for a rate hike next month. It was the last Fed decision before next week's presidential election between Democrat Hillary Clinton and Republican Donald Trump, a race that has rattled markets by opinion polls showing a tightening White House race.
While most national polls still favour Clinton, investors are also starting to factor in the possibility that Trump might pull off a victory on Nov. 8, deepening investor anxiety given uncertainty about his stance on issues including foreign policy, trade relations and immigrants.
Among Asian bourses
Australia Market slips for third day
Australian share market closed lower for third straight session, with investors opting for less risky assets after Wall Street fell for a seventh straight session overnight and on caution ahead of next week's hotly contested US presidential election. Opinion polls showing a tightening White House race between Democrat Hillary Clinton and Republican Donald Trump have rattled markets. At the closing bell, the benchmark S&P/ASX 200 index dropped 3.40 points, or 0.07%, to 5,225.60, while the broader All Ordinaries index was down 4.40 points, or 0.08%, to 5,306.60.
The financials index closed down 0.2%, with Commonwealth Bank of Australia and Westpac Banking Corp weighing on the index most. Australia and New Zealand Banking Group was up about 0.6%, after posting its full year results on Thursday.
Building and construction materials company Boral declined 4.2%, after the company reported that first half FY2017 was expected to be lower than first half FY2016 for Boral Australia.
South32 closed down 1.5% despite the company announcement it will acquire the Metropolitan coking coal mine and its associated 16.7% interest in the Port Kembla Coal Terminal.
Warrnambool Cheese and Butter Factory shares jumped up 5.2% after it booked a profit of A$20.8 million in the six months ended September and lifted revenue 10% to A$325.9 million.
China Market rises after private survey shows signs of economic strength
Mainland China stock market finished session firmly in green terrain, after a private survey showed more signs of economic stability. Meanwhile, sentiment also spurred by the upcoming Shenzhen-Hong Kong Stock Connect scheme. The benchmark Shanghai Composite Index went up 0.84% to close at 3,128.94 points, while the Shenzhen Component Index finished 0.48% higher at 10,743.96 points. The CSI 300 index of the 300 biggest companies traded in Shanghai and Shenzhen went up 0.95% to close at 3,365.09 points. The ChiNext Index, which tracks China's NASDAQ-style board for high-tech and emerging start-ups, gained 0.32% to 2,153.18 points.
Earlier in the day, a private survey showed growth in China's services sector accelerated in October, reinforcing the view that the world's second-largest economy is on a steadier footing. The Caixin/Markit services purchasing managers' index (PMI) rose to 52.4 in October on a seasonally adjusted basis from 52.0 in September, posting the strongest reading since June. Investors are also responding to headline news that a global roadshow promoting the Shenzhen-Hong Kong Stock Connect scheme has been completed.
Industrial, construction and state-owned firms surged as investors bet that the government will favor infrastructure projects and fiscal spending to bolster growth. China State Construction Engineering and China Communications Construction both locked at 10% upper circuit.
Hong Kong Stocks end down in cautious mood
The Hong Kong stock market finished the session lower, after Wall Street fell for a seventh straight session overnight, with investors bracing for the prospect of a hike in U.S. interest rates in December as well as volatility stemming from a tense U.S. election campaign. The Hang Seng Index fell 0.56% or 126.99 points to 22683.51, while the Hang Seng China Enterprises Index shed 0.4% or 37.86 points to 9482.01. Turnover increased slightly to HK$54.9 billion from HK$54.7 billion on Wednesday.
Local property counters were mixed after latest interest rate future showed the odds for a Fed's rate hike in December is 78%.. Sino Land (00083) and SHKP (00016) fell 1% to HK$12.56 and HK$115.8. Kerry (00683) put on 2% to HK$24.85.
Citi Research expects that HKBOR may follow the potential hike of the US rate, resultingin notable net interest income growth. It named BOCHK (02388) as its top pick in the sector. The stock gained 1% to HK$27.4. Citi also raised its target price for Hang Seng Bank (HSB)(00011) to HK$140 and upgraded its rating to "neutral". HSB edged up 0.1% to hK$140.5.
HKEx (00388) said its 9-month earnings fell 30%. Goldman Sachs said there were no major surprises in the results. The stock ended down 1% to HK$200.
Sensex drops for fourth straight session
Indian benchmark indices edged lower in what was a volatile session of trade. The barometer index, the S&P BSE Sensex, fell 96.94 points or 0.35% to settle at 27,430.28. The Nifty 50 index shed 29.05 points or 0.34% to settle at 8,484.95.
Wipro dropped 2.1%. The company announced the appointment of Gilles Grange, as the regional head of its operations in France. In his new role, Gilles will be responsible for building and strengthening the company's presence in France by pursuing new business opportunities and growing its visibility in the region. He will be based in Paris, and report to Christophe Martinoli, Vice President and Head of Continental Europe. The announcement was made after market hours today, 3 November 2016.
NMDC shed 3.61%. The company announced that it has kept unchanged price of lump iron ore at Rs 2,100 per wet metric tonne and that of fines iron ore price at Rs 1,760 per wet metric tonne with effect from 3 November 2016 compared with prices in October. The announcement was made after market hours today, 3 November 2016.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 lost 1.1% to 6778.94. Indonesia's Jakarta Composite index fell 1.4% to 5329.50. Taiwan's Taiex shed 0.8% to 9067.27. South Korea's KOSPI index added 0.3% to 1983.80. Malaysia's KLCI was down 0.7% at 1648. Singapore's Straits Times index eased 0.2% to 2802.08.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
