Asian stocks ended mixed on Thursday as renewed worries over Greece’s debt woes kept investors nervous. Sentiment was dampened after the European Central Bank (ECB) toughened its stance with Greece by suspending the use of the country’s debt as collateral for its liquidity operations, starting Feb. 11, citing doubts over the new government’s commitment to past reform pledges.
Global growth worries also kept investors on edge. Global emerging markets started 2015 on a weak footing, a survey by Markit Economics and HSBC bank showed. The HSBC Emerging Markets Index fell to 51.2 in January from a three-month high of 51.7 in December, reflecting the weakest expansion in services sector activity in eight months. In contrast, manufacturing output growth quickened to the fastest rate since August.
Chinese shares reversed early gains to end sharply lower. The benchmark Shanghai Composite closed down 1.18 percent at 3,136.53 after a late-day selloff. The benchmark index jumped over 2 percent early in the session after China’s central bank lowered banks’ reserve requirement ratio by 0.5 percentage points to 19.5 percent with effect from February 5, in a bid to boost liquidity and counter slowdown in the world’s second-largest economy.
Hong Kong’s Hang Seng index ended off its day’s high at 24,765.49, up 0.35 percent from its previous close.
Japanese shares fell after the ECB suspended the collateral waiver facility for Greek banks, reviving investors’ concerns about possible upheaval in the eurozone. The benchmark, which surged 2 percent on Wednesday, dropped 0.98 percent to close at 17,504.62, while the broader Topix index shed half a percent.
Hitachi slumped 10 percent on disappointing earnings results. Consumer electronics giant Panasonic fell 2.1 percent, Sharp Corp lost 2.6 percent and Canon dropped 1.1 percent, while Nikon rose 1.6 percent. Toyota Motor declined a percent even as the automaker raised its full-year profit forecast to a record high. Mazda Motor tumbled 2.9 percent on reporting a 4 percent decline in third-quarter profit.
Mitsubishi UFJ Financial Group closed 0.4 percent higher after climbing more than 5 percent yesterday. Sony Corp. shares soared 12 percent after the electronics giant said its annual loss for the year that ends in March will likely be smaller than previously forecast, thanks to cost cuts, a weaker yen and improving smartphone sales.
Australian shares rose for an eleventh consecutive session to close at a fresh seven-year high. The benchmark S&P/ASX 200 index gained 0.6 percent to finish at 5,811, led by banks. National Australia Bank rose 1.3 percent as it unveiled a $1.8 billion quarterly profit. ANZ gained a percent, Commonwealth rallied 2.7 percent and Westpac advanced 0.6 percent.
Big miner BHP Billiton dropped 2 percent, Rio Tinto shed 0.9 percent and smaller rival Fortescue Metals Group lost 2.7 percent. Newcrest Mining jumped 3.7 percent after gold prices rose 1 percent on Wednesday. Energy stocks such as Woodside Petroleum, Santos and Oil Search fell 2-3 percent. U.S. crude futures plunged 9 percent overnight, snapping a four-day rally, after data showed U.S. crude inventories jumped to a record high.
Engineering company Downer EDI shares declined 0.9 percent. The engineering and construction group flagged further redundancies after reporting a four percent decline in first half profit.
Retailer Myer Holdings soared 5.6 percent, JB Hi-Fi advanced 1.7 percent and Wesfarmers closed 0.4 percent higher after official figures showed Australian retail sales rose modestly in December from the previous month, supported by low oil prices. Another report showed that new home sales in Australia fell by 1.9 percent in December from the previous month, although sales surged 14.4 percent over the previous year in 2014.
Seoul shares fell from a two-month high hit yesterday as a renewed oil plunge and lingering concerns over the implications of political transition in Greece kept investors on the sidelines. The benchmark Kospi average dropped 0.51 percent to finish at 1,952.84. Shares of Shinhan Financial Group slumped 5.4 percent after the company reported a 7.7 percent fall in Q4 net profit.
New Zealand shares rose for a fourth day to close at a fresh record high ahead of the upcoming earnings season. The benchmark NZX-50 index rose 0.21 percent to 5797.59, with 21 of its components advancing. Heartland New Zealand paced the gainers, climbing 3.7 percent to $1.41, and Chorus extended recent gains to close up 2.5 percent at $2.85, while exporter Fisher & Paykel Healthcare added 1.8 percent. Among those that fell, shares of The a2 Milk Co plunged 6.1 percent to its lowest level since August 2012.
Elsewhere, India’s Sensex was rallying 1.3 percent after four days of losses. Shares in Taiwan and Malaysia were little changed, while Indonesia’s Jakarta Composite index was down 0.9 percent and Singapore’s Straits Times index was losing half a percent.
Taiwan’s consumer price index fell an annual 0.94 percent in January, defying expectations for a 0.3 percent increase, official figures showed. Malaysia’s exports and imports increased at a faster-than-expected pace in December from a year ago, preliminary figures from the Department of Statistics revealed.
U.S. stocks closed mixed on Wednesday, as oil prices broke a four-day rally and investors paused for breath after strong gains for two sessions in a row. Economic reports painted a mixed picture of the economy, with private sector employment cooling a lit bit last month, while economic activity in the services sector picked up pace in January over the previous month. While the Dow inched up marginally, led by Disney shares, the tech-heavy Nasdaq dropped 0.2 percent and the S&P 500 eased 0.4 percent.
