Regional market responded positively at start of trade as investor sentiment was lifted by strong retail sales in the world's largest economy. American retail sales advanced 0.7% in November, the highest in eight months, as cheaper gas and an improving job market fueled a promising start to the holiday shopping season. Excluding gas stations, whose sales were dented by falling gasoline prices, sales climbed 0.9%.
But, most of early gains vanished after China's economy showed fresh signs of weakness in Novemberindustrial output growth slid to a three-month low and investment extended its sluggish trend.
The China's National Bureau of Statistics (NBS) said on Friday that China's industrial output rose 7.2% from a year earlier, below October's 7.7% growth and undershooting a market expectation of 7.5% expansion. The result was also the slowest growth this year, with the sole exception of August's 6.9% increase. NBS data also showed retail sales grew a modest 11.7% from the year-earlier period in November, a marginal improvement from the previous month's 11.5% rate. Also, fixed-asset investment for the January-November period increased 15.8%, in line with expectations. Property investment increased 11.9% for the January-November period, slower than the 12.4% increase over the January-October period. Friday's figures follow weaker-than-expected imports, exports and inflation figures earlier this week
Among Asian bourses
Aussie stocks fall for fourth day
Australian share market closed lower for fourth consecutive day, on concerns about Chinese economy slowdown after weaker-than-expected industrial output for November. The benchmark S&P/ASX 200 index declined 11.40 points, or 0.22%, to close at 5219.60 and the broader All Ordinaries index lost 10.50 points, or 0.2%, to 5196.90. Market turnover was relatively moderate, with 1.44 billion shares changed hands worth of A$3.92 billion. 583 stocks were up, while 699 were down. The benchmark S&P/ASX 200 Index lost 2.2% over the past week, while the broader All Ordinaries Index lost 2.1%.
Shares on mining companies were the worst performer in Sydney market, as Federal Treasurer Joe Hockey warned that next week's mid-year economic and fiscal outlook will include more spending cuts and said not to expect a budget surplus till 2018. Among miners, resources giant BHP Billiton fell 1.9% to A$28.46 on concerns over the impact of weaker oil prices on its petroleum division, while Rio Tinto fell 2.5% to A$53.67 and Fortescue Metals was 2% weaker at A$2.42. Bullion miner Newcrest Mining declined 1.2% to A$10.72.
Financial were also weak, with major four lenders being major all declined. Among big banks, Westpac Banking Corp declined 0.6% to A$32.05, ANZ Banking Group 0.7% to A$31, National Australia Bank 0.4% to A$31.95, and Commonwealth Bank of Australia 0.6% to A$81.74.
Nikkei rises for the first time in four days
Japanese stock market closed higher for the first time in four consecutive day, as investors chased for value buying on account of yen weakening against greenback and optimism before weekend elections that could boost support for Prime Minister Shinzo Abe's aggressive reform policies. Meanwhile, better-than-expected US consumer spending data also underpinned buying in the Tokyo shares. The benchmark Nikkei Stock Average rose 0.66% to 17371.58. It closed the week with a 3.1% loss.
Investors are now closely eyeing to Sunday's important lower house parliamentary elections, where the ruling government coalition is seen likely to retain its grip on power.
Shares of Power generators advanced after reports news that two reactors operated by Kansai Electric Power are set to clear tougher safety regulations put in place after the 2011 Fukushima disaster, paving the way for their eventual return to commercial service. Kansai's shares added 3.6%, while Tokyo Electric gained 4.0% and Tohoku Electric 1.0%.
Canon gained 3.9% after the firm announced a fiscal year-end dividend of Y85 per share, bringing its total payout for the year ending December to a record Y150 per share.
Nidec Corp danced 4.6% higher after the motor maker announced the purchase of German engineering concern Gere und Pumpenbau GmbH, with terms of the deal not available.
Sony Corp fell 1% as embarrassing email messages surfaced from its entertainment division, which suffered from a major data-stealing cyber attack.
Shanghai Composite rises 0.42% on policy easing speculation
Mainland China share market closed higher, on mounting speculation of further policy easing from government after weaker than expected industrial production growth for November. The benchmark Shanghai Composite advanced 0.42% to 2938.17 at the close. Full-day turnover remain healthy, with 409.48 billion shares traded worth 420.41 billion yuan.
Total 8 out of 10 SSE industry groups advanced, with gauges of technology companies climbed the most, up 2.3%, followed by telecom up 0.8%, industrial up 0.8% and materials up 0.7%.
The China's National Bureau of Statistics (NBS) said on Friday that China's industrial output rose 7.2% from a year earlier, below October's 7.7% growth. Separately, NBS said retail sales grew a modest 11.7% from the year-earlier period in November, a marginal improvement from the previous month's 11.5% rate. Also, fixed-asset investment for the January-November period increased 15.8%.
Friday's figures follow weaker-than-expected imports, exports and inflation figures earlier this week, adding to speculation that the Chinese central bank will undertake additional easing measures. In late November, the People's Bank of China cut interest rates for the first time in over two years to support the flagging economy as Beijing appears on course to miss the 7.5% growth target set earlier this year.
Hang Seng drops 63.34 points
Hong Kong share market closed down for second consecutive session, as risk sentiments discouraged by concerns about China economic slowdown after slate of Chinese economic data for November painted a mixed picture. The Hang Seng Index ended lower 63.34 points, or 0.27%, to 23249.20, off an intra-day high of 23445.96 and low of 23230.03. Turnover decreased to HK$76.89 billion from HK$98.08 billion on Thursday.
Oil stocks traded mixed after heavy declines in the previous session, as China Petroleum & Chemical Corp fell 1.2% to HK$6.03, and offshore oil producer Cnooc closed steady at HK$10.06, while Kunlun Energy Co rebounded 2.7% to HK$0.91 and PetroChina Co moved higher at HK$8.09.
Airlines stocks closed down on profit booking following recent rally. Cathay Pacific Airways moved down by 1.3% to HK$17.36 and China Eastern Airlines Corp fell 4.2% to HK$3.88 and Air China slipped 3.4% to HK$6.27.
CQRC Bank (03618) jumped 4% to HK$4.72 on talks that the central bank of China injected RMB400bn into the market through China Development Bank. But other banks were muted. CCB (00939) dipped 1.2% to HK$6. ICBC (013998) edged down 0.8% to HK$5.29.
China auto makers were higher. Geely (00175) jumped 4.6% to HK$3.19. Brilliance China (01114) gained 1.6% to HK$12.92. Great Wall Motor (02333) added 1.4% to HK$40.45
Sensex sheds 251 points
Indian stock market ended lower, dragged down by oil shares because of declining global crude oil prices. Adding to this, investors were cautious ahead of CPI and IIP data. The Sensex ended down 251 points or 0.91% at 27,351 and the Nifty closed 69 points or 0.8% lower to end the trade at 8,224.
Shares of oil exploration and production (E&P) companies edged lower on decline in global crude oil prices. Metal shares declined after the latest data showed factory production in China slowed in November 2014.
Meanwhile, media reports today, 12 December 2014, suggested that the Centre and the state governments have made a significant headway on the goods & services tax (GST). Meanwhile, the latest data showed that the government's total indirect tax collections jumped 19.4% to Rs 44060 crore in November 2014 over November 2013.
The Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said today, 12 December 2014, that the central bank will start talks with the government for an appropriate timeline to ensure that the economy is within a medium term inflation target of 2% to 6%.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.16% to 9007.33. South Korea KOSPI was up 0.27% to 1921.71. New Zealand's NZX50 was up 0.2% at 5515. Singapore's Straits Times index added 0.16% at 3324.13. Indonesia's Jakarta Composite index added 0.15% to 5160.43. Malaysia's KLCI dropped 0.66% to 1733.
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