The regional market began the week on the back-foot, as risk sentiment dampened on following dive on Wall Street last Friday and as a commodity rout deepened. US stocks closed down for the second straight day on Friday amid concerns ranging from falling crude oil prices, anxiety over an oil glut during a demand slowdown, and the global response to the Federal Reserve's rate hike. But the regional benchmark indices recouped losses later afternoon, as a steady stream of equities news filtered through.
Brent crude prices, which touched a seven-year low of $36.32 on Friday, were trading at $36.47 at 0245 GMT as production around the world remained at or near record highs, and a strong dollar following last week's U.S. rate increases weighed on demand. A break of $36.20 would take it to ground last trod in 2004. U.S. crude lost 25 cents to $34.48 a barrel, close to Friday's 2015 lows.
Among Asian bourses
Australia market finishes higher
Australian share market finished the session marginally above the neutral line after recouping early losses, thanks to late hour bargain hunting in material and resources stocks. At the close, the benchmark S&P/ASX 200 index rose 2.30 points, or 0.05%, to finish at 5109 points.
Shares of material and resources companies were top gainers in the Sydney market, due to bargain hunting following heavy slump in recent sessions and news that China's smelters are considering deeper production cuts. Global miner BHP Billiton rebounded 1.5% to A$17.34, while rival Rio Tinto grew 1% to A$42.88. Smaller iron ore player Fortescue climbed up 2.6% to A$1.77, after the price of iron ore rose 1.7 per cent on Friday to above $40 a tonne, a two-week high. Gold miner Newcrest Mining jumped 2% to A$12.65. Oil and gas producer Woodside Petroleum rose 1.4% to A$27.14 and Santos grew 4% to A$3.60.
Financial shares were also higher, with Commonwealth Bank of Australia up 0.4% to A$81.92, National Australia Bank up 0.1% to A$28.82, and Australia & New Zealand Banking Group up 1.2% to A$26.79, while Westpac Banking Corp declined 0.1% to A$32.25.
Shares of Crown Resorts rose 4 per cent to A$12.00, extending an 8.7 per cent gain last week on reports that controlling shareholder James Packer, the former chairman, is in talks to privatise some of the company's assets. Early on Monday the company said Mr Packer has stepped down as director, which could make it easier for him to act.
Nikkei ends marginally softer
The Japanese share market finished the session tad below neutral line, after trimming intraday losses during late afternoon. The Tokyo market suffered heavy selloff in morning trade as risk sentiment hit by tracking drop in Wall Street of Friday and sharp appreciation of yen against the dollar amid worries that the central bank will be reluctant to expand its easing program in the coming year. But, the market trimmed losses late afternoon as bargain hunters stepped in and chased for heavily battered stocks on view recent selloff was overdone. Total 21 out of 33 TSE industry groups declined, with the day's notable losers comprised Securities & Commodities Futures, Metal Products, Electric Appliances, Precision Instruments, and Pharmaceutical, issues, while major gainers included Nonferrous Metals, Iron & Steel, and Pulp & Paper issues. The 225-issue Nikkei Stock Average declined 31.70 points, or 0.17%, to 18955.10. The Topix index of all Tokyo Stock Exchange First Section issues slipped 5.82 points, or 0.38%, to 1531.28.
The Japanese market fell sharply in morning, with Nikkei 225 losing around 2%, after a confusing statement from the Bank of Japan on Friday. The Bank of Japan tweaked its monetary policy on Friday, a surprise announcement that brought confusion because it wasn't clear if the action represented more stimulus. The BoJ said it would start buying government bonds with longer to run until maturity, and would buy an additional 300 billion yen of equities a year. However, Haruhiko Kuroda, the BoJ governor, subsequently insisted that the changes were no more than a technicality.
Toshiba Corp shares tumbled 9.8% after reports that the electronics giant is likely to announce a net loss of more than 500 billion yen for the fiscal year to March 2016, as it prepares to fix its unprofitable consumer electronics businesses. The company released a statement before the Tokyo open, confirming that a large loss would be expected if a restructuring plan were approved.
Consumer-staples stocks lead China market rally
The Mainland China stock market ended sharply higher, as risk sentiments bolstered on bet the government will accelerate reform of state-owned enterprises. Meanwhile, bargain buying in blue chips stocks were also inspired by recent wave of share acquisitions by yield-seeking insurance firms. All 10 SSE industry groups advanced, with shares of consumer-staples led gainers. The Shanghai Composite Index advanced 1.77%, or 63.51 points, to close at 3642.47. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 0.96%, or 22.39 points, to close at 2357.99. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, declined 0.01%, or 0.34 points, to close at 2829.92.
Shares of consumer-related companies advanced the most among 10 SSE industry group in shanghai. Yili Industrial locked 10% upper circuit and Henan Shuanghui surged 10% daily limit. Kweichow Moutai Co., the nation's biggest maker of baijiu liquor, climbed 4.7%.
Shares of brokerages companies gained as China and Hong Kong regulators approved the first cross-border mutual funds. Citic Securities Co. advanced 4.1%, while Haitong Securities Co. gained 2.6%.
Shares of China Vanke suspended for trading, pending an announcement about a "major restructuring", after Chairman Wang Shi said he did not welcome Shenzhen Jushenghua Co, the property and insurance group which recently became its largest shareholder.
Hong Kong Market closed higher
The Hong Kong stock market ended edge higher in quiet trade, as strength in the Chinese equity market helped investors shrug off the gloom in U.S. and European stocks. The benchmark index opened down 114 points at 21,641, which marked the intra-day low. It quickly recovered the lost ground and soared as much as 115 points at one stage to an intra-day high of 21,871 on the back of higher Shanghai market. Most of sectors advanced, with financial stocks being major gainer. The benchmark Hang Seng Index advanced 36.12 points, or 0.17%, to 21791.68 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 112.58 points, or 1.17%, to 9746.991 points.
Shares of energy and resources companies ended higher, as bargain hunting spurred on heavily batter stocks, defying lingering concerns about weak demand for oil and commodities due to global economic sluggishness. PetroChina (00857) rose 0.8% to HHK$5.13. CNOOC (00883) grew 0.1% to HK$7.86.
Property developers stocks were down. Sino Land (00082) dipped 2% to HK$11.42. SHKP (00016) dipped 1% to HK$94.05 on talks that its former chairman Walter Kwok has recently arranged financing with private bank. It was said that Kwok has pledged his stake in SHKP for fund.
Aviation counters soared on lower oil prices. China South Air (01055) surged 10% to HK$6.21. Air China (00753) advanced 3% to HK$6.43. China East Air (00670) leaped 4% to HK$4.59.
Sensex registers modest gains
Indian stock market ended with a positive note as gains in index heavyweights ITC and Infosys along with gains for metal stocks. The barometer index, the S&P BSE Sensex, rose 216.68 points or 0.85% to settle at 25,735.90. The Nifty rose 72.50 points or 0.93% to settle at 7,834.45. Bank stocks edged higher after the government tabled the bankruptcy bill in Lok Sabha for its discussion and passage.
Sun Pharmaceutical Industries edged lower in choppy trade after the company received a warning letter from the United States Food and Drug Administration (USFDA) for its facility located at Halol in Gujarat. Mahindra & Mahindra (M&M) edged higher on reports that the company is developing petrol engines for its existing vehicles after the Supreme Court temporarily banned the sale of large diesel cars in Delhi.
Mahindra & Mahindra (M&M) gained 2.64% to Rs 1,277.15 on reports that the company is developing petrol engines for its existing vehicles after the Supreme Court temporarily banned the sale of large diesel cars in Delhi.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.3% to 8282.17. South Korea's KOPSI grew 0.3% to 1981.19. New Zealand's NZX50 added 0.2% to 6120.82. Indonesia's Jakarta Composite index added 0.5% to 4490.68. Malaysia's KLCI sank 0.9% to 1629.09. Singapore's Straits Times index dropped 0.3% at 2845.55.
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