Volatilities in US equities continued overnight with DOW closing down 266.96 points, or -1.62% while S&P 500 closed down 39.1 points or 2.09%. NASDAQ also dropped 129.79 points, or 3.1%. Asian equities followed with, in particular, with Japanese market benchmark Nikkei index leading the regional losses.
Among Asian bourses, Japanese market finished the session at lowest level in six months today as risk aversion selloff triggered across the board on tracking steep fall in Wall Street overnight, meanwhile disappointed Chinese trade data and yen appreciation against the basket of major currencies accelerated selloff pressure. The benchmark Nikkei-225 index sank 2.38% to finish at 13,960.05, its lowest close since early October, while the Topix index of all first-section shares lost 1.34% to 1,134.09. For the week, the Topix (TPX) sank 6.7%. The Nikkei 225 Stock Average slid 7.3%.
Shares of Japanese technology and exporters companies extended losses due to drop in US tech peers, and most importantly yen upward crawling against the US dollar. A stronger yen is worst for Japanese manufacturers, as it makes prices of goods more costly overseas. As of the close of trading on the Tokyo Stock Exchange, the yen fell 0.3% to 101.81 per dollar after climbing 0.5% yesterday.
Nissan Motor Co, a carmaker that gets about 80% of revenue abroad, fell 1.4% to 904 yen. Komatsu Ltd. (6301), a maker of construction machinery that depends on overseas markets for 80% of its revenue, dropped 1.2% to 2,128 yen.
SoftBank lost 3.8% to 6,900 yen, after Nomura cut its target price on the company's shares to 10,740 yen from 10,880 yen. Yahoo Japan declined 2.1% to 467 yen. Rakuten Inc. slipped 2.2% to 1,274 yen.
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Fast Retailing tumbled 7.9% to 33,820 yen, after Asia's biggest clothing retailer cut its forecast for annual profit as costs rise and demand weakens for the company's casual wear in Japan. The company pared its profit outlook after spending more on salaries and expanding overseas to boost sales as the tax increase damps demand. Net income will be about 88 billion yen ($865 million) for the year ending August, lower than its previous forecast of 92 billion yen, the Yamaguchi, Japan-based company said yesterday.
Bank of Japan said on Friday that Japan's corporate goods price index rose 1.7% in March from a year earlier, marking the 12th consecutive year-on-year rise but the pace of increase decelerated from +1.8% in February and a recent peak of +2.6% in November 2013, reflecting softer prices of primary products such as steel and iron.
In Australia, Australian share market declined, as profit taking flared after the benchmark indices closed yesterday at highest points since June 2008. Meanwhile weak cues from offshore market also fuelled profit taking selloffs. The benchmark S&P/ASX200 and the broader All Ordinaries each declined by 1% from prior day to finish at 5428.60 and 5423.50, respectively.
All sectors under the ASX exchange dived into sea of red, with information technology sector was top loser on tracking fall in US peers. Meanwhile selloff was also evident in consumer staples, healthcare, industrials, materials, financials, telecom and energy counters.
Coca-Cola Amatil (CCL) declined 14.6% to A$9.74 after the company delivered a profit warning, announcing it expects 1H earnings to be down 15% for the prior period due to weakness in its Australian operations and higher costs in Indonesia. New group managing director Alison Watkins said CCL is reviewing its assets, cost base and marketing strategies.
The Bank of Queensland (BOQ) was placed in a trading halt as the lender announced a A$440 million acquisition of Investec Australia's assets. BOQ will buy Investec's professional finance unit which includes 19,000 customers in the medical and accounting professions, as well as a A$2.4 billion loan portfolio and A$2.7 billion deposit book. BOQ also today announced a record first half cash profit of A$140.2 million and increased its interim dividend to 32 cents per share. BOQ last traded at A$12.62.
Australian Bureau of Statistics said on Friday that personal finance loans were up 3% in February, seasonally adjusted. Personal finance commitments rose seasonally-adjusted to A$8.395 billion in February, from A$8.150 billion in January. Commercial loans fell 2.5% to A$39.562 billion in February and lease finance rose 0.9% to A$422 million. Housing finance for owner occupiers grew 1.9% to A$16.907 billion, from A$16.587 billion in the previous month.
In New Zealand, equities on the New Zealand stocks joined a global sell-off on Friday, April 11, 2014 amid concerns high-growth companies may struggle to convert sales into profits, led lower by biotech firm Pacific Edge and software developer Xero. The NZX 50 Index fell 24.058 points, or 0.5%, to 5091.431. Within the index, 28 stocks fell, 11 rose and 11 were unchanged.
Pacific Edge was the biggest decliner on the NZX, falling 9.8% to NZ$1.10. The Dunedin-based bladder cancer text developer had an intraday decline of 15% to NZ$1.04, the lowest since Oct. 23, and has dropped 25% in the past month.
Vital Healthcare Property Trust, which has a gross dividend yield of 6.4%, was the biggest gainer on the NZX50, up 0.8% to NZ$1.295.
In China, Mainland China share market closed lower, as investors withdrew gains off the table following strong recent rally and as falling producer prices signalled weakening economic growth. The benchmark Shanghai Composite Index, which tracks both A and B shares, declined 0.18% from prior day closure to finish at 2130.54, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, sank 0.18% to 2270.67.
The Chinese benchmark indexes has rebounded nearly 7% since March 20 as the government eased funding restrictions for financial companies and outlined a package of measures to support growth last week, including railway spending and tax relief.
A report today, 11 April 2014, showed Chinese consumer prices rose 2.4% in March from a year earlier, after gaining 2% in February. The nation's producer price index retreated 2.3% following the previous month's 2% drop.
China will ease restrictions on overseas investments by local firms and deals below $1 billion will no longer need approval, the country's economic planner said in another step to cut red-tape and facilitate the growth of private investment. Starting from May 8, Chinese firms planning to invest less than $1 billion will only need to register with authorities rather than seek approvals from the National Development and Reform Commission (NDRC), the commission said in a statement late on Thursday. 10 April 2014.
Among SSE sectors, 7/10 sectors of the SSE index declined, with material sector was top loser in the SSE sectoral peers, with a 1% fall. Meanwhile, information technology issue declined 1%, energy down 0.8%, industrials down 0.5%, telecommunication services down 0.4%, financials down 0.4%, and utilities down 0.1%. On the upside, Consumer staples sector rose 1.4%, healthcare up 0.8% and consumer discretionary up 0.2%.
Shares of consumer-staple sector raised the most in Mainland China indexes. Kweichow Moutai Co., China's biggest liquor maker by market value, added 3.9%. Wuliangye Yibin Co, the second largest, gained 4.1%. Henan Shuanghui Investment & Development Co., the country's biggest pork processor, rose 1.9%.
Shares of industrial and energy companies slid as falling producer prices signalled weakening economic growth. Anhui Conch tumbled and 3.5%.China Petroleum & Chemical Corp., Asia's biggest oil refiner, also known as Sinopec, fell 1.5%.
In Hong Kong, shares in the city's market declined for the first time in four consecutive sessions, as investors cashing in gain off the table, on tracking sharp fall in the Wall Street overnight and worse deflation PPI data from China. The benchmark Hang Seng index declined 0.8% to 23003.64, while the Hang Seng China Enterprises Index dropped 1.85% to 10228.42.
Among the HK 50 blue chips, 28 fell and 27 rose, with remaining five stocks closed steady. Tencent Holdings declined 6.8% to HK$525, contributing 131-points losses to the benchmark Index and becoming the worst-performing blue chip, n talks that institutional investors sold stake in the company. Hong Kong Exchanges & Clearing advanced 11.5% to HK$146, contributing 52-points gains to the benchmark Index and becoming the best-performing blue chip, on resumption of trading.
H-share stocks with premium to A-share counterparts became targets of selling. Anhui Conch (00914) plunged 7.2% to HK$30.15. Weichai Power (02338) and Angang Steel (00347) retreated 3%. ICBC (01398), CCB (00939) and ABC (01288) dipped 2%. Only BOC (03988) was steady.
Mainland insurers also bore the brunt of selling. Ping An (02318), China Life (02628) and CPIC (02601) declined 5% to HK$61.4, HK$21.55 and HK$25.75.
In India, key benchmark indices edged lower in choppy trade on the last trading session of the week after the latest data showed that India's merchandise exports fell for the second month in a row in March 2014. Weakness in Asian and European stocks and overnight steep slide in US stocks hit sentiment on the domestic bourses adversely.
The barometer index, the S&P BSE Sensex, was provisionally down 103.93 points or 0.46%, off close to 70 points from the day's high and up about 85 points from the day's low. Among the 30 Sensex shares, 20 fell and the remaining shares rose.
Maruti Suzuki India lost 0.98%. The company today, 11 April 2014, said it will proactively replace 'fuel filler neck' of 1.03 lakh vehicles which includes 42,481 units of Dzire, 47,237 units of Swift and 13,593 units of Ertiga manufactured between 12 November 2013 and 4 February 2014. This exercise is limited to vehicles within the above specified range and does not pertain to any other vehicle of the company, Maruti said. In the affected vehicles there is a possibility of fuel smell and in extreme condition there may be some fuel leakage, if fuel is filled upto the fuel cap, beyond 'Auto cutoff level', Maruti said.
Tata Motors fell 1.81% to Rs 423. The stock reversed direction after hitting record high of Rs 437.70 in intraday trade. The company's British luxury car unit Jaguar Land Rover (JLR) on Thursday, 10 April 2014, said its sales rose 3% to 55,183 units in March 2014 over March 2013. Jaguar sales jumped 19% to 11,731 units in March 2014 over March 2013. In March, Land Rover sold 43,452 vehicles, in line with prior year, with strong performances across the range, JLR said in a statement.
JLR's sales rose 8% to 124,776 vehicles in Q1 March 2014 over Q1 March 2013. Jaguar sales rose 19% to 24,031 vehicles in the Q1 March 2014 over Q1 March 2013. Land Rover sales rose 6% to 100,745 vehicles in Q1 March 2014 over Q1 March 2013.
Ratnamani Metals & Tubes advanced 2.1% after the company bagged two orders for supply of Carbon Steel Pipes aggregating to Rs 412.62 crore.
Electrosteel Castings gained 1.36% to Rs 22.30 after the company said its board of directors have decided to issue equity shares to the promoters of the company on preferential basis.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 fell 0.53%. Taiwan's Taiex index lost 0.93%. South Korea's KOSPI index was down 0.87%. Malaysia's KLSE Composite fell 0.54%. Singapore's Straits Times index fell 0.18%. Indonesia's Jakarta Composite Index rose 0.67%.
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