Risk aversion dominated the market today as investors booked some gains on recent rally amid caution ahead of the much-awaited release of a US jobs report for September. Investors are awaiting for the data for scrutinizing clues on when the US Federal Reserve might start scaling back its quantitative easing program. Investors are mindful another round of disappointing labour market data would reduce the chances of the central bank tapering later this year. The data has been delayed due to the 16-day partial shutdown of the US government this month.
According to some traders that the upcoming US payrolls report was unlikely to dispel uncertainties surrounding the Fed's monetary policy since the data would not shed light on the impact of this month's government shutdown.
Among Asian bourses, Japanese financial market closed edged higher in choppy trading, helped by yen weakness against the greenback and speculation that corporate earnings would surpass forecasts. The benchmark Nikkei Stock Average closed 0.13% higher at 14713.25 points after having dropped 0.4% earlier in the session, its highest level since Sept. 27. The broader Topix index also finished 0.17% up at 1214.40 after having declined 0.1% earlier in the session.
Shares of Japanese blue-chip exporters advanced on overseas earnings optimism as the dollar was slightly higher against the Japanese yen at 98.25, compared with 98.17 late Monday in New York. Fujitsu rose 0.7% to 417 yen, Sony Corp 0.7% to 1935 yen and Canon Inc 0.6% to 3205 yen. Shares of Honda Motor Corp climbed 0.3% to 3960 yen and Toyota Motor Corp 1.1% to 6370 yen.
In Australia, Australian shares were higher for sixth consecutive session, sending the benchmark S&P/ASX200 index higher by 21.30 to finish at 5373.10, a fresh five year high. Stocks in Hong Kong led Asia lower Tuesday, while a strong performance in BHP Billiton Ltd. helped the Australian stock market rise.
Materials and resources blue chips climbed the most in the Sydney, with BHP Billiton rising 2.4% to A$37.05 after the miner raised its fiscal-year forecast for iron-ore production to 212 million metric tons following record output from its mining site in Australia's Pilbara region. Rio Tinto added 0.4% to A$63.97. Fortescue Metals Group fell 0.7% to A$5.41.
Oil Search shares closed 0.1% higher at A$8.65 after the group said it had increased production in the September quarter although it sold less oil and gas in the period. Production in the three months to the end of September rose 10% from the last quarter. Total production for the first nine months of 2013 rose to 4.97 mmboe, up from 4.59 mmboe last year. OSH maintained full year production guidance, forecasting that it would be towards the upper end of a 6.2 to 6.7 mmboe range. Total operating revenue, for the quarter fell 14% to $175.3 million on sales that were 19% weaker. The fall in sales was blamed on the timing of shipments. The PNG LNG project is on track to make its first deliveries next year.
Shares of David Jones fell 2.1% to A$2.79 after the upscale retailer unexpectedly said late Monday its Chief Executive Paul Zahra plans to step down after three years in the position.
In China, Chinese financial market declined on profit taking, with shares of technology related companies tumbling the most on concern valuations are excessive, while property developers declined on property tightening measures woes as home prices spurred in September. The benchmark Shanghai Composite index was lower by 0.82% to finish at 2210.65.
Shares of China's information technology companies declined on profit taking, with Software maker Neusoft falling 7% to 16.37 yuan after rising 4.5% yesterday. Hangzhou HIK-Vision Digital Technology Co. slid 5.4% to 25.25 yuan.
Shares of Chinese realty developers tumbled on speculation the government likely to expand its property tax trials amid recent hikes in home prices in many cities. The National Bureau of Statistics (NBS) data indicated today that existing home prices rose 18% in Beijing last month from a year earlier, leading the gains, followed by a 14% increase in Shenzhen and 12% in Shanghai. Among developers, Poly Real Estate, China's second-largest developer by market value, fell 1.7% to 9.59 yuan. Gemdale lost 1.7% to 5.87 yuan. Shanghai-based developers that have rallied on the city's free-trade zone prospects also tumbled, with Lujiazui Finance & Trade Zone Development Co. sliding 2.8% to 21.64 yuan.
In Hong Kong, HK shares declined in choppy trade, with the benchmark Hang Seng index falling 0.52% to 23315, on caution ahead of the much-awaited release of a US jobs report.
Among the 50 HK blue chips, 17 rose and 31 fell, with two stocks remaining steady. Sands China (01928) was the top blue-chip loser, dipping 4.9% to HK$56.8. CR power (00836) was the biggest blue-chip winner, gaining 3.9% to HK$20.75.
Hong Kong-listed Chinese developers declined after data showed that new home prices rose on year in September in 69 of 70 Chinese cities. Signs of rising house prices are often taken negatively, as it increases expectations that Beijing could step in to cool the property market. China Resources Land dropped 1.3% to HK$22.45 and China Overseas Land & Investment sank 0.8% to HK$24.05.
Shares of Macau gaming players declined on profit-taking after yesterday's record-hitting rally. Galaxy (00027) slipped 4.5% to HK$59.75. SJM (00880) plunged 6.6% to HK$25.6.
In India, Indian benchmark indices finished weaker on tracking weak global peers ahead of monthly U.S. jobs data. The S&P BSE Sensex was provisionally down 23.56 points or 0.11%, up 60.08 points from the day's low and off 78.58 points from the day's high.
Among Indian market heavyweights, Reliance Industries dropped on profit booking after logging gains in the preceding nine trading sessions. TCS rose after the company won a multi-million, multi-year technology contract to manage Bombardier Transportation's newly commissioned German data centres. Wipro advanced ahead of its Q2 September 2013 results today, 22 October 2013. L&T reversed intraday fall in volatile trade after the company during market hours today, 21 October 2013 said that L&T Construction has secured new orders worth Rs 1333 crore in October 2013 in various business segments
Elsewhere in the region, New Zealand's NZX 50 index rose 0.61%. Indonesia's Jakarta Composite index fell 1.43%. South Korea's KOSPI rose 0.15%. Malaysia's KLSE Composite added 0.05%. Singapore's Straits Times index rose 0.45%. Taiwan's Taiex index fell 0.01%.
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