Asia Pacific Market: Stocks down on global growth slowdown fears

Asia Pacific share market declined on first trading session of the week, Monday, 21 September 2015, as risk aversion selloff after the Federal Reserve's decision to keep interest rates steady at record lows rekindled concerns about the pace of global economic growth.

The Fed's decision to keep rates steady on Thursday in part reflects concern about slowing growth in China and other emerging marketsconcerns exacerbated last month by Beijing's currency devaluation, which set off wild market swings. U.S. stocks tumbled Friday to their biggest one-day loss in two weeks.

The US central bank cited concerns about the global economy and a lack of inflation growth in the United States as the reasons for its decision to leave interest rates at record low after the conclusion of a two-day monetary policy meeting on 17 September 2015.

Among Asian bourses

Australia market tumbles on global growth fears

The Australian share market ended steeply down, erasing last week's gains, as anxiety about the pace of global growth triggered risk aversion selloff across the sectors, with materials and resources, energy and financial issues leading selloff. The benchmark S&P/ASX 200 index declined 104.30 points, or 2%, to 5066.20 points. The broader All Ordinaries index ended down 97.90 points, or 1.9%, at 5096.40.

Energy and resources stocks were the major drag for the day in the ASX, due to global-growth worries. Among energy shares, Woodside Petroleum was down 2.9% to A$28.83 and Papua New Guinea-focused takeover target Oil Search was 0.1% lower at A$7.48, while Origin Energy was 3.8% weaker at A$6.79. Among miners, mining heavy weights BHP Billiton declined 2.5% to A$23.85 and Rio Tinto fell 2.9% to A$49.78, while Fortescue Metals Group lost 4.1% to A$1.975.

Banks and financial stocks were also down in a broad selloff, as threats to the local economy, including the property market, appeared to weigh on the minds of investors. Among top lenders, Westpac Bank declined 2.8% to A$30.85, Australia & New Zealand Banking Group 2.4% to A$27.72, National Australia Bank 1.9% to A$30.47, and Commonwealth Bank 2.9% to A$73.62.

China market gains on small-cap shares demand

The Mainland China's stock market ended higher on the back of gains in small-cap and midcap shares, with IT, industrial and telecom players leading the rally. Market turnover was, however, thin as investors were looking to China's flash factory activity survey on Wednesday for clues on whether the economy is deteriorating more rapidly than earlier thought. The Shanghai Composite Index rose 1.9%, or 58.62 points, to 3156.54 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 3.55%, or 59.55 points, to 1738.64. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was up 4.83%, or 95.76 points, to close at 2079.06.

Shares of industrial and technology companies were some of the major winners in Beijing on reports China and the U.S. are expected to reach agreements on trade, energy, climate, finance, aviation, defence and infrastructure construction during President Xi Jinping visit to the U.S. from Sept. 22-25. Leshi Internet Information & Technology Corp surged 10% daily limit, while East Money Information Co. gained 9.2%. China Spacesat Co. and China First Heavy Industries both locked 10% upper circuit. China Railway Group jumped 7.1% on a plan to inject industrial manufacturing units into China Railway Erju Co. in exchange for assets.

China National Nuclear Power Co jumped 5.9 percent, after British Finance Minister George Osborne said on Monday that Britain welcomed the potential for majority Chinese investment in future nuclear projects. Britain will also provide 2 billion pounds ($3.1 billion) of initial support for a new nuclear power station at Hinkley Point in southwest England, a project China is backing.

Hong Kong market falls on global growth concerns

Hong Kong stock market ended softer in volatile trade, following plunge in the U.S. markets last week, after the Federal Reserve's decision to keep interest rates steady at record lows reignited concerns about the pace of global growth. The benchmark Hang Seng Index (HSI) opened down 306 points, but recovered part of its losses as the Mainland China A-share market outperformed. The Hang Seng Index dropped 163.90 points, or 0.75%, at 21756.93 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, de-grew 129.01 points, or 1.29%, to 9899.37 points. Turnover reduced to HK$70.2 billion from HK$95.5 billion on Friday.

Shares of casino operators declined after Nomura revised down its 2015-17 GGR forecasts for Macau from 17% to 5%. Galaxy Ent (00027) declined 3.9% to HK$23.35. Sands China (01928) descended 2.5% to HK$27.7. Wynn Macau (01128) slid 3.8% to HK$10.72.

Hong Kong's overall consumer prices rose 2.4% in August over the same month a year earlier, slightly smaller than the corresponding increase of 2.5% in July, according to the Census and Statistics Department. After netting out the effects of all Government's one-off relief measures, the year-on year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in August remained virtually unchanged at 2.6% as compared to July. The slightly smaller increase in the Composite CPI in August was mainly due to the special fuel rebate in electricity starting from mid-August.

Sensex ends softer

Banking and power sector stocks led a strong intraday loss trimming for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 0.56 points at 26,218.35, as per provisional closing. The 50-unit CNX Nifty fell 4.80 points or 0.06% at 7,977.10 as per provisional closing. The Sensex and the Nifty staged a recovery from a near 1% slide in early trade triggered by weakness in Asian stocks. The recovery on the domestic bourses materialized as European stocks edged higher.

IDBI Bank jumped 16.72% to Rs 69.45 after Finance Minister Arun Jaitley reportedly said in an interview to a television channel that the government is working out ways to give more operational freedom to state-run banks and hinted at IDBI Bank being one of the first test cases.

Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.8% to 8307.04. South Korea's KOPSI lost 1.6% to 1964.68. New Zealand's NZX50 fell 0.5% to 5683.52. Singapore's Straits Times index added 0.1% at 2882.27. Indonesia's Jakarta Composite index sank 0.1% to 4376.08. Malaysia's KLCI declined 1.8% to 1639.47. Japan stock market closed on Monday for Holiday

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