Oil's slump gathered momentum, with U.S. crude extending losses at a six-year low on concern weakness in China's economy will exacerbate the global glut. West Texas Intermediate crude lost 0.5% to $42.03 per barrel, after settling at its lowest price since March 2009.
The People's Bank of China set the yuan fixing at 6.3975 against the U.S. dollar on Friday, stronger than Thursday's central parity of 6.4010.Today's fixing is also slightly higher than Thursday's close price of 6.3990. The Chinese yuan showed sign of stabilization after the central bank soothed market sentiments on Thursday.
China's central bank said on Thursday that there was no basis for further depreciation of the yuan given strong economic fundamentals, in a bid to reassure jittery global markets after it devalued the currency earlier in the week. As the yuan fell for the third straight day, the People's Bank of China (PBOC) said China's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provided strong support to the exchange rate.
Among Asian bourses
Australia: Stocks fall to 7-month low
The Australian share market ended at seven-month low in volatile trade, as investors opted for caution ahead of the weekend. Most of sectors were lower, with energy, materials, and retailers stocks being major losers. The benchmark S&P/ASX 200 Index declined 31.40 points, or 0.58%, to 5356.50 points, while the broader All Ordinaries Index fell 29 points, or 0.54%, to 5360 points. Total of 2.3 billion shares traded today worth A$4.8 billion. 448 stocks rose, 491 fell and 326 finished unchanged. For the week, the benchmark S&P/ASX200 lost 2.2%.
Shares of energy companies suffered the heaviest price falls as investors responded to lower oil prices which saw WTI crude futures fall by 2.5% to US$42.23/bbl in overnight trade with the selloff continuing in Asian trade. Santos plunged 9% to A$5.99, as investors fretted over the possibility the debt-laden company would need to raise capital. Woodside Petroleum was down 3.6% to A$32.84. Origin Energy de-grew 4.5% to A$9.67 and Oil Search lost 3.2% to A$6.70.
Materials and resources stocks also ended down, with BHP Billiton falling 0.7% to A$25.32 and Rio Tinto sinking 1.6% to A$51.13. Fortescue Metal sank 1.9% to A$1.785 amid uncertainty about China's appetite for the steelmaking ingredient and its falling purchasing power with the slide in the yuan and rise in the dollar.
Atlas Iron (AGO) rose 3.3% despite posting a A$1.4 billion annual loss. The ore producer has been heavily impacted by a halving in the iron ore price over the financial year. AGO shares have slumped by 80% this calendar year.
Sonic Healthcare (SHL) fell 1.1% to A$20.25 after the medical diagnostics company lost an expected contract in Alberta, Canada likely to generate more than $C200m in annual revenue over a term spanning ~15 years.
Japan stocks fall ahead of GDP data
Japanese share market finished the session weaker, dragged down by profit-taking amid caution before the release of Japan's growth data on Monday and lingering concerns about the Chinese economy. Total of 24 out of 33 TSE sectors declined, with Iron & Steel, Mining, Oil & Coal Products, Machinery, and Marine Transportation sectors being major gainers. The Nikkei Stock Average declined 76.10 points, or 0.37%, to end at 20519.45 points. The broader Topix index ended 3.49 points, or 0.21%, lower at 1664.46 points, capping a weekly loss of 0.9%.
Investors are keeping eyes on Japan's April-June gross domestic product data due Monday. As per reports, the nation's real GDP likely to shrink an annualized 1.9% in June quarter, due to weaker exports and consumer spending.
Shares of Commodity-related suffered heavy losses in Tokyo after oil prices hit fresh six-year lows. U.S. oil prices fell in overnight trading on a mix of concerns about global economic growth, rising crude supplies and a major U.S. refinery outage. Light sweet crude for September delivery fell 2.5% to $42.23 a barrel, touching its lowest point since March 3, 2009. During trading Friday, Brent crude on London's ICE Futures exchange fell by one cent to $49.23 a barrel. Oil explorer Inpex Corp. slumped 1.8% to 1278 yen, while Nippon Steel & Sumitomo Metal Corp. dropped 2.2% to 277 yen.
Industrial players were also down, with Kubota Corp falling 3.8% to 2036 yen after reports showed that machinery orders in June fell 7.9% from the previous month.
Nexon Co.'s shares jumped 19.5% to 1950 yen after online game company announced solid earnings results with net profit rising 56% for the six month ended June 2015.
China stocks ends higher
Mainland China's stock market ended higher in choppy trading session, as the central bank fixed the yuan's central parity slightly stronger from Thursday's level after guiding it lower for previous three straight days. 7 out of 10 SSE sectors ended well above the neutral line, with shares of telecom, energy, healthcare, and utilities sectors being major gainers The benchmark Shanghai Composite Index rebounded 0.27%, or 10.78 points, to end at 3965.33 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 0.5%, or 11.61 points, to 2310.40 points. Total volume of A shares traded in Shanghai was 64.75 billion shares, while Shenzhen volume was 32.68 billion shares.
Property heavyweights were among the gainers underpinning the rise in Shanghai; Poly Real Estate and Gemdale elevated 2.1 and 1.1%, respectively, while Vanke notched up 0.5%.
Hong Kong market ends softer
Hong Kong stock market closed softer in quiet trade. The Hang Seng Index ended 27.77 points, or 0.12%, higher at 23991.03 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 20.86 points, or 0.19%, to 11060.06 points. Turnover reduced significantly to HK$64.2 billion from HK$86.8 billion on Thursday.
HSBC (00005) dipped 0.7% to HK$68. The global bank and eight other banks have agreed to pay HK$15.6 billion to settle a FX rigging lawsuit.
CNY stabilized today after days of decline. BOCHK (02388), the settlement bank of CNY, rebounded 3% to HK$29.4. It was the second-largest blue-chip winner. Citic (00267) was the biggest blue-chip gainer. It ended up 6% to HK$14.94. Its unit Citic Dameng (01091) soared 30% to HK$1.
Sands China (01928) announced its earnings during lunch break. Its interim net fell 46% to US$734 million. The company declared no dividend. It jumped 1% to HK$33.9. Galaxy Ent (00027) put on 1% to HK$34.25.
Sensex jumps on rate cut hopes
Indian benchmark indices surged as market sentiment was boosted by hopes of a possible rate cut by the Reserve Bank of India after data released today, 14 August 2015 showed wholesale price index (WPI) for July 2015, slipped further into negative terrain and stood at -4.05% as compared to -2.4% in June 2015. Data earlier this week showed consumer price inflation tumbled in July 2015. The S&P BSE Sensex jumped 517.78 points or 1.88% to settle at 28,067.31. The CNX Nifty surged 162.70 points or 1.95% to settle at 8,518.55.
Hindalco Industries rose after the company reported strong Q1 June 2015 earnings at the operational level. BPCL dropped after announcing strong Q1 results. Realty and bank stocks led rally on hopes of a rate cut by the central bank on falling inflation. Telecom stocks gained.
Meanwhile, the government is reportedly sounding out political parties over scheduling a two-day session of Parliament in September ahead of the Bihar elections to pass the Goods and Services Tax Bill, seen to be a crucial piece of tax reform linked to the Narendra Modi government's effort to improve ease of business and boost revenues. The monsoon session of Parliament ended yesterday, 13 August 2015, without passage of any major bills amid political tussle between the government and the opposition parties.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 489.91 crore into secondary equity market yesterday, 13 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 545.86 crore yesterday, 13 August 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.1% to 8305.64. New Zealand's NZX50 declined 0.7% to 5696.45. Singapore's Straits Times index rose 0.7% at 3114.25. Indonesia's Jakarta Composite index jumped 0.02% to 4585.39. Malaysia's KLCI grew 1.5% to 1596.82.
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