(RTTNews) - Mixed trading was witnessed among the major markets in Asia on Monday, as traders preferred to adopt a cautious approach as the US market is closed for holiday on the eve of Independence Day. While the markets in Australia, China, Hong Kong, India and Singapore ended in negative territoryu, the markets in Japan, Indonesia, South Korea and Taiwan ended in positive territory with marginal gains. Volumes were relatively less than normal as traders awaited more cues on sustaining global economic recovery. Weaker than expected jobs report in the US and negative closing on Wall Street on Friday impacted market sentiment.
In Japan, the benchmark Nikkei 225 Index climbed 63.07 points, or 0.69%, to close at 9,267, while the broader Topix index of all First Section issues was up 5.91 points, or 0.71% to close at 837.
On the economic front, a report released by Markit Economics revealed that the Nomura Services Purchasing Managers’ index fell to a seasonally adjusted 47.1 in June from 47.5 in May. This marks a four-month low for the indicator. A reading above 50 indicates expansion while one below suggests contraction.
Exporters led the gains as the local currency paused from recent appreciation. Fanuc Ltd gained 1.40%, Canon Inc. advanced 0.77%, Sony Corp. rose 0.87%, Sharp Corp surged up 3.05%, and TDK Corp. gained 0.95%.
Most of the traders preferred to stay in the sidelines as foreign investors abstained on the eve of holiday in the US market. Lack of fresh economic cues and uncertainty about global economic recovery, following weak jobs report in the US on Friday as well as weak closing on Wall Street last Friday impacted market sentiment.
Select buying was witnessed at major stocks. Fast Retailing, which announced a sharp drop in same store sales on Friday, declined 1.79% capping the overall gains in the market on bargain. Volumes were relatively less than normal as traders stayed away on lack of cues on global economy.
In Australia, the benchmark S&P/ASX200 Index slipped 16.60 points, or 0.39% and closed at 4,221, while the All-Ordinaries Index ended at 4,251, representing a loss of 14.30 points, or 0.34%.
On the economic front, results of a key survey revealed that Australia’s service sector contracted in June, although the rate of decline was slower than in May. The Australian Industry Group / Commonwealth Bank Australia performance of services index stood at 48.8 in June, up from 47.5 in the previous month. A reading above 50 indicates expansion while one below suggests contraction. The main negative contributions to the indicator came from a faster rate of contraction in new orders and a shift from expansion to contraction for inventories and selling prices. These were partially offset by a slower pace of contraction in sales and expanding employment.
An indicator of inflation in the country, captured by the TD Securities-Melbourne Institute Inflation gauge revealed that inflation indicator rose 3.6% in June, compared to the same period last year, well above the Reserve Bank of Australia’s 2-3% inflation target range. On a monthly basis, the indicator was up 0.3% in June following a 0.5% increase in the previous month. The latest rise in the indicator was attributed to rising prices of fruits and vegetables.
A report released by the ANZ Bank revealed that the total number of jobs advertized in major metropolitan newspapers and on the Internet in the country rose by a seasonally adjusted 2.7% in June from May to an average of 169,690 per week. This follows a 2.7% rise in May. On a yearly basis, total job ads increased 32.2% in June. This follows a 21.7% rise in the preceding month. Newspaper job ads rose 11.8% and internet job ads increased 33.6%.
Mixed trading was witnessed among the banking stocks. ANZ Bank added 0.14% and Commonwealth Bank advanced 0.13%. However, National Australia Bank lost 1.47%, and Wespac Banking slipped 0.81%. Investment bank Macquarie Group ended weaker by 1.25%.
Gold stocks ended in positive territory. Lihir Gold advanced 0.24% and Newcrest Mining added 0.29%.
Among mining and metal stocks, BHP Billiton slipped 0.30%, Rio Tinto edged down 0.08%, Fortescue Metals shed 0.98%, Gindalbie Metals declined 0.51%, Iluka Resources fell 0.21%, and Minara Resources lost 2.99%. However, Macarthur Coal surged up 5.20%, Murchison Metals climbed 3.71% and Mincor Resources gained 1.05%.
In Hong Kong, the benchmark Hang Seng Index ended in negative territory with a loss of 63.12 points, or 0.32%, at 19,842, taking cues from other markets in the region on concerns about global economic recovery. Weak closing on Wall Street on Friday on weak jobs report, and holiday today on the eve of Independence Day at the US impacted market sentiment, as most traders preferred to stay away from the market, awaiting fresh cues on global economy.
The Indian market ended a lackluster session modestly lower on Monday. Trade volumes were sluggish due to limited investor participation owing to a 12-hour strike called by the Opposition parties to protest against the recent fuel price hike. After moving choppily in a range of 17,506- 17,424, the 30-share BSE Sensex ended down 20 points or 0.11% at 17,441, with 17 of its components declining. The 50-share Nifty closed almost unchanged at 5,236, while the small-cap and the mid-cap indexes on the BSE rose about 0.3% each. In the broader market, gainers outpaced decliners by 1614 shares to 1238 shares.
Among the other major markets open for trading, China’s Shanghai Composite Index slipped 18.95 points, or 0.80%, to close at 2,364, and Singapore’s Strait Times Index edged down 0.17 points, or 0.01% to close at 2,844. However, Taiwan’s Weighted Index surged up 109.22 points, or 1.49%, to close at 7,440, and Indonesia’s Jakarta Composite Index added 5.75 points, or 0.20%, and closed at 2,877.
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