Asia Pacific share market ended sharply below neutral line on Monday, 16 November 2015, as appetite for risk assets weighed by Paris terror attacks over weekend. The MSCI Asia Pacific Index declined 0.6% to 131.47.
Risk sentiment was badly dented by Friday's brutal terrorist attacks in Paris. The attacks, which occurred across seven locations, killed 132 people and hundreds more injured.
On Sunday, France launched extensive airstrikes against Islamic State's stronghold in Syria, after the government blamed the extremist group for attacks in Paris on Friday. Islamic State said the Paris attacks were payback for France's military involvement in the Middle East. G20 leaders are convening a summit on Sunday and Monday in Turkey and are expected to issue a common response. In the near term, the financial markets would likely stay in risk averse mode.
Among Asian bourses
Australia market falls 0.94%
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The Australian share market extended last week losing momentum, as investors gravitated toward the safety due to the Paris terrorist attacks over the weekend and continuing worries about global growth. The benchmark S&P/ASX 200 index ended 47.50 points, or 0.94%, down at 5003.80 points, while the broader All Ordinaries index fell 47.30 points, or 0.93%, to 5064.50 points.
Shares of energy players were biggest gainers on the Sydney bourse as Brent oil prices rallied more than 1% on perceived production disruption after news that France had launched airstrikes in the Middle East. Woodside Petroleum has gained 1.3% to A$28.82 and Santos rose 4% to A$4.13. Origin Energy went up 3% to A$4.88 and Oil Search rose 2.7% to A$7.94.
Liquefied Natural Gas was up 14.6% to A$1.49, after a contract pricing announcement for its US LNG export venture, which was taken as a positive step in getting regulatory approval.
Gold stocks were up, as the spot price of gold rose 0.8% on safe-haven flows. Newcrest Mining fared the best, up 2.3% to A$11.44.
Financial stocks were worst performer in the Sydney bourse amid concerns over the profitability of the country's powerful banks. Commonwealth Bank declined 1.3% to A$74.78, Westpac 1.6% to A$30.02, National Australia Bank 1.4% to $27.86, and ANZ Bank 1.5% to A$25.91.
Nikkei drops 1.04%
The Japanese share market closed down, as investors moved toward risk aversion mode in the wake of terror attacks in Paris over the weekend and as Japan's gross domestic product, or GDP, contracted in the third quarter. The day's notable decliners comprised utilities, civil aviation, retailer, insurance and electric appliance Metal issues, while oil & coal products and mining issues were among major gainers. The Nikkei Stock Average was 203.22 points, or 1.04%, to end at 19393.69 points. The broader Topix index has lost 0.9%, or 14.30 points, to 1571.53 at the close.
Investors flew toward risk aversion selloff after data showing that Japan's economy had entered a technical recession following two successive quarters of contraction. GDP declined a larger than expected annualised 0.8% in the third quarter ended September, following a revised 0.7% drop in the second quarter, the Cabinet Office said on Monday.
Shares of exports, banks and retailers were worst performer in the Tokyo bourses today as investors sought the safety of haven assets in the wake of the Paris terrorist attacks. DeNa Co. sank 8.3% after a brokerage reduced its rating on the online game maker. Travel agency H.I.S. Co. slumped 5% after a report it would refund tours to France if customers cancel them.
Civil aviation stocks were also down on concerns that people will travel less following the latest terrorist attack in Paris, with ANA Holdings Inc. and Japan Airlines Co. losing 3.5% and 3% respectively.
China market rebounds 0.73%
The Mainland China stock market ended higher in volatile trade, bucking the regional market weakness, in the wake of news that the Chinese yuan moved closer to joining IMF SDR basket and President Xi Jinping statement at the weekend that the country is able to maintain a medium to high economic growth rate and to grow at around 7% this year. The Shanghai Composite Index rose by 0.73%, or 26.12 points, to close at 3606.96 points, erasing a decline of as much as 1.7%. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 2.06%, or 45.41 points, to close at 2250.98. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was up 3.21%, or 87 points, to close at 2797.16.
Most sectors reversed early losses in the afternoon with Technology shares leading rebound on bargain hunting. Tsinghua Tongfang Co, a provider of computer and software services controlled by Tsinghua University, surged 6.5%.
Transportation stocks remained down, with airline operators including Air China, China Eastern Airlines, China Southern Airlines slumping about 2% each, amid concern the Paris attacks would deter people from travelling overseas.
Hong Kong market dips 1.72%
Hong Kong stock market ended down, as the deadly Paris terror attacks put investors on edge. The benchmark Hang Seng Index dropped 385.32 points, or 1.72%, to 22010.82 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, has lost 202.77 points, or 2%, to 9978.70 points. Turnover decreased to HK$76.9 billion from HK$82.7 billion on Friday.
Brokerages were down after Chinese exchanges announced that they would raise the minimum requirement for margin deposits from 50% to 100%. First Shanghai (00227) plunged 7% to HK$1.36. Haitong Sec (06837) and CGS (06881) dropped 5% to HK$14.2 and HK$7.35.
Realty counter was also down after Citi Research said HK's residential market will emerge from its current consolidation phase by late 1Q 2016, with a 3% recovery. Its top "sell" stocks Wharf (00004) and Swire Properties (01972) dipped 3% and 1% to HK$43.3 and HK$21.65.
Li & Fung (00494) slid 4% to HK$5.33, after Deutsche Bank said weak economy may affect intention of Li & Fung's clients to place order, thus dragging its earnings. It rated the stock "sell", with a target price of HK$5.3.
Sensex extends gains
Indian benchmark indices extended gains in mid-afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was up 199.24 points or 0.78% at 25,809.77. The Nifty 50 index was up 52.85 points or 0.68% at 7,815.10.
Latest data released by the government showed that the annual rate of inflation, based on monthly wholesale price index (WPI) stood at minus 3.81% for the month of October 2015 as compared to minus 4.54% for the previous month and 1.66% during the corresponding month of the previous year.
Shasun Pharmaceuticals rose 1.43% after the company announced that it has received approval from the United States Food & Drug Administration for Carisoprodol Tablets 250 mg and 350 mg.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index dropped 0.4% to 8295.40. South Korea's KOPSI shed 1.5% to 1943. Malaysia's KLCI lost 0.1% to 1656.62. Singapore's Straits Times index declined 0.3% at 2915.73. Indonesia's Jakarta Composite index slipped 0.7% to 4442.18. New Zealand's NZX50 slipped 0.5% to 5961.67.
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