TD: Asian Markets Slip On Concerns About Economic Recovery
(RTTNews) - The markets in Asia, except South Korean market, ended in negative territory on Thursday taking cues from Wall Street where the major averages ended in negative territory in the previous session as traders raised fresh concerns about the strength of economic recovery after economic data revealed sharp drop in monthly consumer credit. Fresh concerns about debt crisis in Greece also provided opportunity for profit taking in the markets. In South Korea, the market bucked the trend and ended in positive territory on fresh buying interest from foreign investors on blue-chip stocks.
In Japan, the benchmark Nikkei-225 Index dropped 124.63 points, or 1.10%, to 11,168.20, while the broader Topix index of all First Section issues was down 9.55 points, or 0.96%, to 986.
On the economic front, a preliminary report released by the Cabinet Office revealed that core machinery orders declined 7.1% year-over-year in February, following 1.1% contraction in the previous month. Analysts expected core machinery orders to rise 2.1% for February. On a monthly basis, core machinery orders were down 5.4% - again well below forecasts for a 3.7% increase after the 3.7% decline in January.
A report released by the Ministry of Finance revealed that the country posted a current account surplus of 1.471 trillion yen in February, up 29.6% year-over-year. Analysts expected a surplus of 1.620 trillion yen for the month, following the 899.8 billion yen surplus reported for January. The report further noted that the adjusted current account balance showed a surplus of 1.119 trillion yen - again missing forecasts for a 1.248 trillion yen surplus after the 1.712 trillion yen surplus in the previous month.
A report released by Tokyo Shoko Research Ltd revealed that the number of corporate bankruptcies in the country declined 14.5% year-on-year in March to 1,314 cases. The report further noted that the construction sector had the highest number of bankruptcy cases, totaling 341 in March, followed by the other services sector at 289. The manufacturing sector registered a total of 211 bankruptcy cases. On a monthly basis, the total number of corporate bankruptcies increased 20.5% in March.
Tire company Bridgestone Corp. lost 2.73% and the Yokohama Rubber Co., slipped 1.35%.
Credit Siason Co., engaged in financial services, fell 2.85%.
Exporters ended in weaker territory on stronger yen against the US dollar as a stronger local currency reduces the value of export proceeds in local terms when repatriated, affecting the bottom line. Canon Inc. declined 1.47%, Sony Corp. lost 2.44%, Panasonic Corp. fell 2.22%, Sharp Corp. shed 1.90% and Fanuc Ltd slipped 0.58%.
Trading companies also ended in negative territory on profit taking. Toyota Tsusho Corp. fell 1.63%, Mitsubishi Corp. shed 0.69%, Marubeni Corp. slipped 0.51%, Sumitomo Corp. lost 0.71% and Mitsui & Co., edged down 0.31%.
Flat trading was witnessed among large banking stocks. Sumitomo Mitsui Financial and Mitsubishi UFJ Financial ended unchanged from previous close. Mizuho Financial Group gained 0.54%, while Resona Holdings ended in negative territory with a loss of 0.41%.
In Australia, the bench mark S&P/ASX 200 Index declined 23.00 points, or 0.46% to close at 4,938, while the All-Ordinaries Index ended at 4,960, representing a loss of 22.90 points, or 0.46%.
On the economic front, a report released by the Australian Bureau of Statistics revealed that unemployment rate in the country remained unchanged in March compared to February, while the number of employed persons increased in line with expectations. According to the report, the unemployment rate in the country stood at a seasonally adjusted 5.3% in March, in line with the economists' expectations. The unemployment rate among males stood at 5.4% and that among females stood at 5.3%. The report noted that the total number of employed people in the country increased by 19,600 in March to 10.99 million. Further, as much as 619,000 Australians were unemployed by the end of March, up 4,200 from February.
Gold stocks ended in positive territory on higher gold prices in the bullion market and speculation that gold prices will continue to rise further. Lihir Gold gained 1.80% and Newcrest Mining advanced 0.65%.
Mixed trading was witnessed among mining and metal stocks on profit taking. BHP Billiton slipped 1.84%, Rio Tinto shed 1.06%, Fortescue Metals was down by 0.79%, Mineral Resource fell 1.29% and Oz Minerals lost 0.81%. However, Gindalbie Metals gained 1.54%, Iluka Resources climbed 1.97% and Mincor Resources added 0.47%.
Oil stocks ended in negative territory. Woodside Petroleum shed 0.97%, Santos fell 1.14%, Oil Search lost 1.17% and Origin Energy slipped 1.00%.
Banks also ended weaker on profit taking. ANZ Bank fell 1.29%, National Australia Bank lost 1.39% and Westpac Banking slipped 1.07%. However, Commonwealth Bank of Australia bucked the trend and ended in positive territory with a gain of 0.80%.
Mixed trading was witnessed among retail stocks. David Jones slipped 1.05%, Harvey Norman shed 0.27% and JB Hi-Fi Ltd fell 0.79%. On the other hand, Myer Holdings added 0.30%, Reject Shop Limited also added 0.30%, Wesfarmers Ltd climbed 1.36% and Woolworths rose 1.05%.
In Hong Kong, the benchmark Hang Sang Index ended in negative territory with a loss of 61.73 points, or 0.28%, at 21,867. Weak cues from Wall Street where the major averages ended in negative territory amid fresh concerns about sustaining economic recovery and weak trading across other markets in the region impacted market sentiment. Banks, realty stocks and resource stocks declined as traders took the opportunity to lock in some gains from recent rally. Out of 42 components in the index, as many as 32 stocks ended in negative territory with minor losses.
In South Korea, the benchmark KOSPI Index ended in positive territory with a marginal gain of 7.18 points, or 0.42%, at 1,734. Fresh buying interest evinced by foreign institutional investors in blue-chip technology stocks on optimism about economic recovery helped the market buck the weak sentiment prevailing across other markets as well as weak monthly consumer credit report for February released in the U.S in the previous session. Traders also discounted the resurfaced debt crisis in Greece.
Sluggish global cues on concerns over Greece's debt problems and fears about a hike in domestic interest rates following a spike in food price inflation dragged the Indian market sharply lower on Thursday. India's annual food inflation rose to 17.7 percent for the week ended March 27 from 16.35 percent in the previous week, owing to a rise in the prices of milk, fruits and pulses, data released Thursday showed, signaling an imminent rate hike in the upcoming monetary policy meeting on April 20. The 30-share Sensex average closed near the day's lows at 17,714, down about 256 points or 1.42%, while the 50-share Nifty ended down 70 points or 1.31% at 5,304.
Among the other major markets open for trading, Indonesia's Jakarta Composite Index declined 47.75 points, or 1.65%, and closed at 2,851, Singapore's Strait Times Index fell 24.91 points, or 0.83%, to close at 2,963, Taiwan's Weighted Index fell 64.18 points, or 0.79%, to close at 8,058, and China's Shanghai Composite Index ended in negative territory with a loss of 29.51 points, or 0.94%, at 3,119.
