Source: CNBC
Asian equities traded cautiously in the morning session on
Wednesday as major markets such as Japan and China released economic
data.
Oil prices also ticked up during Asian trading session after closing near six-year lows overnight. The U.S. West Texas Intermediate (WTI) crude futures were up 68 cents or 1.81 percent at $38.20 a barrel. Globally traded Brent futures were higher by 53 cents or 1.32 percent at $40.79 a barrel.
U.S. markets closed in the red. The Dow Jones Industrial Average dropped 162.51 points or 0.92 percent to 17,568. The S&P 500 was down 13.48 points or 0.65 percent at 2,063.59 while the Nasdaq ended near flat, down 3.57 points or 0.07 percent at 5,098.24.
Oil prices also ticked up during Asian trading session after closing near six-year lows overnight. The U.S. West Texas Intermediate (WTI) crude futures were up 68 cents or 1.81 percent at $38.20 a barrel. Globally traded Brent futures were higher by 53 cents or 1.32 percent at $40.79 a barrel.
U.S. markets closed in the red. The Dow Jones Industrial Average dropped 162.51 points or 0.92 percent to 17,568. The S&P 500 was down 13.48 points or 0.65 percent at 2,063.59 while the Nasdaq ended near flat, down 3.57 points or 0.07 percent at 5,098.24.
Chinese stocks trade lower, data, yuan mid-point in focus
Chinese markets traded mixed in the morning session after the People's Bank of China (PBOC) set the mid-point rate for the yuan at its lowest level in more than four years.
The yuan's mid-point was set at 6.414 per dollar, its lowest since August 2011, compared with 6.4078 on Tuesday. China's central bank lets the yuan spot rate rise or fall a maximum of 2 percent against the dollar relative to the official fixing rate.
The yuan traded lower at 6.423 against the dollar.
Reaction in the market was muted with the Shanghai Composite trading 23 points or 0.65 percent higher at 3,492 by mid-morning. The smaller Shenzhen Composite was up 6.8 points or 0.3 percent at 2,228.
Chinese brokerages were trading in the green, up between 0.95 and 2.08 percent. Banks, properties, and energy plays were all in positive territory. Shares in Vanke were up by 6.3 percent.
China also released its November inflation numbers. The consumer price index (CPI) was up 1.5 percent on year, slightly beating expectations, while the producer price index (PPI) was down 5.9 percent on-year, in line with a Reuters poll.
Michelle Lam, economist at Lombard Street Research told CNBC's "Asia Squawk Box", "You're seeing this diverging development in the industrial sector and the consumption sector."
"Consumption, if you look at retail sales figures, seems to have been holding out relatively well," she said. The PPI deflation, Lam added, was a symptom of China's overcapacity problem, necessary to allow market forces to squeeze out less profitable companies.
Nikkei down despite strong economic data; Kospi trades higher
Japan posted two consecutive days of positive economic
data. On Tuesday, the revised third quarter gross domestic product
(GDP), the broadest measure of economic health, number showed the
economy was not in technical recession as indicated by the preliminary
data.
On Wednesday, October core machinery orders, a measure of capital spending in the economy, rose unexpectedly by 10.7 percent on-month, against a Reuters poll of economists that predicted a 1.5 percent decline. Core machinery orders rose 10.3 percent on-year, also beating expectations.
Market reaction, however, was modest as the spillover effect of low commodity prices pushed the Nikkei 225 down 151 points or 0.78 percent at 19,341.
Manufacturing stocks traded lower despite the positive economic data. Shares in Hitachi Construction was down 0.48 percent while Komatsu pared losses to remain unchanged.
Japanese blue chips were mostly down, with shares in Sony and Mitsubishi Electric seeing losses of more than 1 percent each.
Elsewhere, the Nikkei reported that Japan's fiance ministry would ramp up issuance of 40-year government bonds in the next fiscal year to reduce the risk of debt-servicing costs eating into the country's finances.
In South Korea, markets traded flat, with the Kospi up 1.23 points or 0.06 percent at 1,950.
Shares in Lotte Shopping traded 4.44 percent higher after news broke that its parent company, Lotte Group, would consider listing its Japanese confectionery business in the Japan stock market.
South Korean blue chips traded mixed with shares in Samsung Electronics up by 0.48 percent.
On Wednesday, October core machinery orders, a measure of capital spending in the economy, rose unexpectedly by 10.7 percent on-month, against a Reuters poll of economists that predicted a 1.5 percent decline. Core machinery orders rose 10.3 percent on-year, also beating expectations.
Market reaction, however, was modest as the spillover effect of low commodity prices pushed the Nikkei 225 down 151 points or 0.78 percent at 19,341.
Manufacturing stocks traded lower despite the positive economic data. Shares in Hitachi Construction was down 0.48 percent while Komatsu pared losses to remain unchanged.
Japanese blue chips were mostly down, with shares in Sony and Mitsubishi Electric seeing losses of more than 1 percent each.
Elsewhere, the Nikkei reported that Japan's fiance ministry would ramp up issuance of 40-year government bonds in the next fiscal year to reduce the risk of debt-servicing costs eating into the country's finances.
In South Korea, markets traded flat, with the Kospi up 1.23 points or 0.06 percent at 1,950.
Shares in Lotte Shopping traded 4.44 percent higher after news broke that its parent company, Lotte Group, would consider listing its Japanese confectionery business in the Japan stock market.
South Korean blue chips traded mixed with shares in Samsung Electronics up by 0.48 percent.
Australian market trade flat
The ASX 200 traded flat, down 2 point or 0.04 percent at 5,106.
The energy sector saw a bounce back, trading up 0.62 percent. Energy stocks gained between 0.97 and 5.74 percent despite lower oil prices. Shares in Santos was up 5.74 percent, Woodside Petroleum was up 0.97 percent and Oil Search traded 1.67 percent higher.
Gold stocks were up between 2.5 and 6.5 percent, as gold traded at $1,075 an ounce.
Miners and resources producers were mostly in the red, though, as industrial metal prices were mixed. Iron ore traded at $38.65 a tonne.
Iron ore producer Fortescue was up 2.22 percent, Atlas Iron down 5.88 percent, while Mount Gibson and BC Iron were also in positive territory.
Australia's two biggest miners Rio Tinto and BHP Billiton traded mixed; Rio Tinto was down 0.73 percent while BHP pared early losses and traded 1.76 percent higher. Overnight one of the world's biggest miners, Anglo American, suspended dividend payments and announced it would cut 85,000 jobs over the next several years as low commodities prices weighed on revenue.
Lucas wrote, "The fall out of Anglo-American will spread through the big five," including BHP Billiton, which said last month it would maintain its progressive dividend policy.
The energy sector saw a bounce back, trading up 0.62 percent. Energy stocks gained between 0.97 and 5.74 percent despite lower oil prices. Shares in Santos was up 5.74 percent, Woodside Petroleum was up 0.97 percent and Oil Search traded 1.67 percent higher.
Gold stocks were up between 2.5 and 6.5 percent, as gold traded at $1,075 an ounce.
Miners and resources producers were mostly in the red, though, as industrial metal prices were mixed. Iron ore traded at $38.65 a tonne.
Iron ore producer Fortescue was up 2.22 percent, Atlas Iron down 5.88 percent, while Mount Gibson and BC Iron were also in positive territory.
Australia's two biggest miners Rio Tinto and BHP Billiton traded mixed; Rio Tinto was down 0.73 percent while BHP pared early losses and traded 1.76 percent higher. Overnight one of the world's biggest miners, Anglo American, suspended dividend payments and announced it would cut 85,000 jobs over the next several years as low commodities prices weighed on revenue.
Lucas wrote, "The fall out of Anglo-American will spread through the big five," including BHP Billiton, which said last month it would maintain its progressive dividend policy.
Elsewhere, Myanmar will launch the country's first stock exchange
as part of its rapid modernization efforts. The Yangon Stock Exchange
is a reported $24 million investment, funded by state-owned Myanmar
Economic Bank, Daiwa Securities and Japan Exchange Group, which operates
the Tokyo Stock Exchange.
- Nyshka Chandran and Leslie Shaffer contributed to this report.
- Nyshka Chandran and Leslie Shaffer contributed to this report.
Symbol
|
Price
|
Change
|
%Change
|
|
|---|---|---|---|---|
| EWJ | 12.23 | -0.16 | -1.29% | |
| ASHR | 35.70 | -0.57 | -1.57% | |
| FXI | 36.24 | -0.56 | -1.52% | |
| ISHARES MSCI CIF | 45.64 | -0.63 | -1.36% | |
| VANG MSCIPAC | 56.84 | -0.73 | -1.27% | |
| STO | 3.48 | 0.17 | 5.14% |
No comments:
Post a Comment