Headline equities of the Asia pacific market mostly down on Thursday, 05 March 2015, as shareholders electing to take profit after China cut its growth target for 2015 earlier in the day. Meanwhile, risk sentiments also dampened on caution ahead of the European Central Bank (ECB) meeting later in the global day and official US jobs market report for February on Friday.
The Chinese Premier Li Keqiang lowered China's gross domestic product growth target to around 7% for 2015 from its level of "around 7.5%" for last year, as he presented the government work report at the opening of China's annual parliamentary session on Thursday. The new official benchmark comes after China's economy expanded 7.4% in 2014, its slowest pace in nearly a quarter century. The Chinese premier also tipped 2015 consumer inflation of around 3% and expects a budget deficit of 2.3% of GDP.
Investors were growing cautious, turning eyes to the European Central Bank's (ECB) policy meeting on Thursday and Friday's official US jobs report for February. ECB president Mario Draghi is expected to unveil details of the bank's huge bond-purchase programme, which launches this month in a bid to ward off deflation in the eurozone and kickstart growth. The ECB's announcement stood in stark contrast to the Federal Reserve's plan to exit crisis support, having ended its asset-purchasing plan in October and planning to raise near-zero interest rates this year. -
Among Asian bourses
Australia stocks rises for the first time in three days
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The Australian share market managed to close above the boundary line after recouping losses late afternoon, registering first gain in three consecutive days, thanks to strength in consumer staple, technology, bullion, utilities and industrial sectors which helping to overshadow losses in mining, energy and realty stocks. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both grew by marginal 0.04% to 5904.20 and 5873.70, respectively. Market turnover was relatively healthy, with 1.55 billion shares changing hands worth of A$4.4 billion. Rising stocks underperformed by declining ones, with total of 633 stocks up, while remaining 661 down.
Shares of retailer and consumer goods companies gained the most in Sydney after data from the Australian Bureau of Statistics indicating Australian retail sales rose better than expected 0.4% in January from a month earlier in January from December, bolstering signs that consumer spending is slowing starting to lift in response to lower interest rates. Woolworths was up 1.6% to A$29.83 and Wesfarmers rose 1.2% to A$43.77. Myer Holdings rose by 4.1% to A$1.67.
Materials and resources stocks saw broad losses, inline with decline in metal prices. The spot price for iron ore was down 30 cents to $61.94 a tonne and futures trading suggesting further declines after Chinese authorities announced a lower economic growth target of around 7% from 7.5%. Resources giant Rio Tinto was down 2% to A$61.15, while BHP Billiton was close behind, losing 0.5% to A$33.16. Iron ore miner Fortescue Metals Group closed steady at A$2.29, after announcing it would ease the pressure on its balance sheet caused by falling iron ore prices by launching a A$2.5 billion debt refinancing deal.
The Australian Bureau of Statistics said on Thursday that the balance on goods and services was a deficit of A$980m in January 2015, an increase of A$477m (95%) on the deficit in December 2014. In seasonally adjusted terms, goods and services credits rose A$343m (1%) to A$27,529m. Non-rural goods rose A$398m (2%) and non-monetary gold rose A$29m (2%). Rural goods fell A$70m (2%) and net exports of goods under merchanting fell A$10m (23%). Services credits fell A$4m. In seasonally adjusted terms, goods and services debits rose A$820m (3%) to A$28,509m. Intermediate and other merchandise goods rose A$346m (4%), capital goods rose A$308m (6%) and consumption goods rose A$192m (3%). Non-monetary gold fell A$28m (10%). Services debits rose A$2m.
Nikkei rebounds 0.26%
Japanese share market ended higher, powering by yen depreciation against the greenback, with export related companies being major gainers. The market opened lower following a negative lead from Wall Street overnight but buying picked up on the back of a recovery trend in the domestic economy and corporate earnings. The Nikkei Stock Average advanced by 48.24 points, or 0.26%, to close at 18751.84, off an intra-day high of 18767.50 and day low of 18655.36. The broader Topix index increased by 6.71 points, or 0.44%, to 1523.72.
Shares of exporters were major winner on the Tokyo market, thanks to yen weakening against the greenback. A weaker yen is generally good for Japanese exporters, as it gives them more room to cut prices on goods they sell overseas and increases the yen value of any profits they send back home. Nikon Corp advanced 3.8% to 1637 yen, Fujitsu added 2.9% to 745 yen, Yahoo Japan Corp rose 2.8% to 485 yen, and Canon Inc added 0.5% to 7727 yen. Sony Corp jumped 0.6% to 3344 yen a day after it announced it has sold more than 20.2 million PlayStation 4 game consoles since they hit the market in late 2013.
Sharp Corp added 0.9% to 234 yen, after media reports that the embattled electronics maker's president would meet main creditors Mitsubishi UFJ Financial Group and Mizuho Financial Group on Thursday to seek financial help.
China stocks drop after government lowers growth target
Mainland China share market closed down, as shareholders electing to take profits after China cut its growth target for 2015, with the shares of utilities, materials and resources, energy and financial companies leading the retreat. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, declined 34.80 points, or 0.98%, to 3496.34, while the Shanghai Composite Index dropped 31.06 points, or 0.95%, to 3248.48.
Total of seven out of ten SSE industry groups declined, with utilities issue leading retreat, down by 2.2%, followed by financial (down 1.6%), energy (down 1.3%), material (down 1.1%), consumer discretionary (down 1%), information technology (down 0.7%) and industrial (down 0.6%).
Among the most active stocks- Bank of China was down 2.8% to 3.80 yuan, Agricultural Bank of China fell 2.5% to 3.14 yuan and China State Construction dropped 1.8% to 6.06 yuan. TCL Corp fell 1.7% to 5.37 yuan and BOE Technology declined 1.5% to 3.21 yuan. Dongxu Optoelec was up 10.0% to 10.16 yuan.
Hong Kong stocks down for third day
Hong Kong share market ended down for third straight session, as risk sentiments undermined by tracking negative finish of Wall Street overnight and China's lowering of lowered its economic growth forecast to about 7% for 2015. The decline was broadbased, with shares of financial and energy companies leading declines. The Hang Seng Index ended down 272.34 points or 1.11% to 24193.04, off an intra-day high of 24393.85 and day low of 24133.71. Turnover jumped to HK$92.1 billion from HK$78 billion on Wednesday.
Financial and realty stocks tumbled, with mainland banks and property developers leading retreat in the Hong Kong market, on worries about the slowing Chinese economy. Agricultural Bank of China was down 1.6% to HK$3.70, Industrial and Commercial Bank of China off 1.5% to HK$5.43, and China Overseas Land & Investment lower by 0.2% to HK$22.95.
Energy names also declined broadly, as China Petroleum & Chemical Corporation lost 1.6% to HK$6.23, and PetroChina Co shed 1.6% to HK$8.45.
Hong Kong retailers dropped further, as the city's retail sales down nearly 15% in January from a year earlier, partly due to political demonstrations and protests against mainland Chinese visitors, with jewellery brand Luk Fook Holdings International leading the losses with a 4.3% slide at HK$23.25.
Shares of solar counters jumped after Premier Li said China will ramp up the development of environmental-friendly energy industry. Hanergy (00566) shot up 14% to HK$7.3. Junyang Solar (00397) skyrocketed 70% to HK$0.31. Soargiga (00757) added 15% to HK$0.38.
Shares of water conservancy counters also jumped after Premier Li said the government will invest RMB800 billion on water conservancy projects. CTEG (01363) gained 5% to HK$8.37. Both China EB Int'l (00257) and ELL Env (01395) put on 4% to HK$11.9 and HK$1.1, respectively.
Sensex made a smart recovery
Intraday volatility continued as the barometer index, the S&P BSE Sensex, regained positive zone in mid-afternoon trade. The intraday recovery for key benchmark indices materialized as European stocks edged higher. At 14:17 IST, the S&P BSE Sensex was up 11.20 points or 0.04% at 29,391.93. The 50-unit CNX Nifty was down 7.50 points or 0.08% at 8,915.15.
Bank stocks declined. Index heavyweights Infosys and L&T and edged lower. HCL Technologies advanced after the company announced a strategic partnership with Tele 2, one of the leading European telecommunications operators, to address the substantial market opportunities for Machine-to-Machine (M2M) and Internet of Things (IoT) solutions in Europe.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 2786.24 crore yesterday, 4 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 16.89 crore yesterday, 4 March 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI ended marginal 0.09 point higher at 1998.38. Taiwan's Taiex declined 0.28% to 9595.09. New Zealand NZX50 was down 0.29% to 5856.77. Indonesia's Jakarta Composite index rose 0.4% to 5470.04. Singapore's Straits Times index dropped 0.28% at 3406.03. Malaysia's KLCI sank 0.83% to 1810.45.
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