Asia markets open mixed; 17.08.2016
ASX down 0.4%, Nikkei up 0.7% Australia's benchmark ASX 200 was down 0.37 percent in early trade, with the heavily-weighted financials sub-index down 0.69 percent.
In New Zealand, the NZX 50 was higher by 0.63 percent in mid-morning trade. Asian markets opened mixed on Wednesday, as the sentiment hit from a lower finish in the US stock market offset the positive impact of a rise in oil prices.
Australia's benchmark ASX 200 was down 0.37 percent in early trade, with the heavily-weighted financials sub-index down 0.69 percent. In New Zealand, the NZX 50 was higher by 0.63 percent in mid-morning trade.
Japanese shares traded higher, with the Nikkei 225 index up 0.65 percent and the Topix advancing 0.57 percent. Across the Korean Strait, the Kospi fell 0.29 percent.
Markets in mainland China and Hong Kong, which were set to open at 9:30 a.m. HK/SIN, may receive a boost after China's State Council said the government had approved plans for the launch of the Shenzhen-Hong Kong Stock Connect. The program, which was modeled after the Shanghai-Hong Kong Stock Connect, would allow Shenzhen-based investors to buy Hong Kong-listed stocks and vice versa. Analysts said the approval of the Shenzhen-Hong Kong Stock Connect was part of China's efforts to open up its financial sector to make it more competitive by international standards. "Although the markets had expected an announcement after the successful conclusion of some technical issues recently, the Shenzhen-Hong Kong connect is an exorcism of the fall-out from the margin financed collapse of mainland stocks in 2015," strategists Sean Darby, Kenneth Chan and Irene Zhou from Jefferies, said in a note to clients. The strategists added that alongside China's on-going reform of monetary policy tools and opening of the bond market, the approval of the stock connect "ought to assuage investors that financial reforms are still very much on the agenda, despite some recent tightening of the capital account."
In the currency market, the Japanese yen traded at 100.40 against the dollar as of 8:20 a.m. HK/SIN; the level was a touch weaker than an earlier session high of 100.14 and compared with levels above 101.00 last week. Analysts told on Tuesday they expect further yen strength in the near future, following the market's disappointment with the Bank of Japan's stimulus plans. The slightly weaker currency likely gave Japanese manufacturers some support in early trade, with Toyota shares advancing 1.09 percent, Honda up 1.96 percent and Canon up 0.31 percent. Sharp shares were up 8.26 percent, after Taiwanese manufacturer Hon Hai completed its acquisition of the Japanese electronics maker earlier this week, following regulatory approval from China's antitrust body. Elsewhere, the dollar slumped against a basket of currencies, trading at 94.804, compared with levels above 95.00 during Asian hours on Tuesday. "Investors dumped US dollars today, pushing the greenback lower against all of the major currencies," said Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, in a note late Tuesday.
"Fed Presidents [William] Dudley and [Dennis] Lockhart warned that the market is underpricing tightening and rates could rise this year ... yet based on the price action of the dollar, investors are not buying what [they] are saying," Lien said, adding the market was looking instead at soft U.S. data and using them as "arguments for why rates will remain unchanged this year." Reuters reported Tuesday New York Fed President Dudley and Atlanta Fed chief Lockhart both said in public statements that the US Federal Reserve could raise short-term interest rates at its September policy meeting.
In the commodities space, oil prices slipped again during Asian hours on Wednesday, after advancing nearly 2 percent on Tuesday, supported likely by further OPEC news and a relatively weaker dollar. Global benchmark Brent slipped 0.77 percent to USD 48.85 a barrel, after climbing 1.8 percent overnight. U.S. crude futures dropped 0.69 percent to USD 46.26, following a 1.8 percent advance on Tuesday. Reuters, citing sources at OPEC, reported that Saudi Arabia wants higher oil prices, which lent further credibility to speculation over possible OPEC action.
In company news, shares of BHP Billiton advanced 1.88 percent on the Australian market, following a 0.67 percent gain in London, as investors appeared to have been comforted by better-than-expected underlying profit print despite the mining company reporting a record loss. BHP, which announced its earnings on Tuesday after the Australian market close, said it posted a record USD 6.4 billion annual loss due to a slump in commodities and a dam disaster in Brazil.
Australian biotechnology firm CSL reported net profit after tax of USD 1.24 billion for the full year ended June 30, slipping from USD 1.38 billion booked in the previous year. Profit was dragged by CSL's acquisition of a money-losing flu vaccine business from Novartis. Underlying net profit after tax, excluding the loss from the Novartis flu vaccine acquisition, was up 5.2 percent. Investors, however, appeared unconvinced, as CSL shares sold off 5.84 percent in morning trade.
Stateside, the Dow Jones industrial average slipped 84.03 points, or 0.45 percent, to 18,552.02; the S&P 500 index ended 12 points lower, or 0.55 percent, at 2,178.15 and the Nasdaq fell 34.90 points, or 0.66 percent, to 5,227.11.
ASX down 0.4%, Nikkei up 0.7% Australia's benchmark ASX 200 was down 0.37 percent in early trade, with the heavily-weighted financials sub-index down 0.69 percent.
In New Zealand, the NZX 50 was higher by 0.63 percent in mid-morning trade. Asian markets opened mixed on Wednesday, as the sentiment hit from a lower finish in the US stock market offset the positive impact of a rise in oil prices.
Australia's benchmark ASX 200 was down 0.37 percent in early trade, with the heavily-weighted financials sub-index down 0.69 percent. In New Zealand, the NZX 50 was higher by 0.63 percent in mid-morning trade.
Japanese shares traded higher, with the Nikkei 225 index up 0.65 percent and the Topix advancing 0.57 percent. Across the Korean Strait, the Kospi fell 0.29 percent.
Markets in mainland China and Hong Kong, which were set to open at 9:30 a.m. HK/SIN, may receive a boost after China's State Council said the government had approved plans for the launch of the Shenzhen-Hong Kong Stock Connect. The program, which was modeled after the Shanghai-Hong Kong Stock Connect, would allow Shenzhen-based investors to buy Hong Kong-listed stocks and vice versa. Analysts said the approval of the Shenzhen-Hong Kong Stock Connect was part of China's efforts to open up its financial sector to make it more competitive by international standards. "Although the markets had expected an announcement after the successful conclusion of some technical issues recently, the Shenzhen-Hong Kong connect is an exorcism of the fall-out from the margin financed collapse of mainland stocks in 2015," strategists Sean Darby, Kenneth Chan and Irene Zhou from Jefferies, said in a note to clients. The strategists added that alongside China's on-going reform of monetary policy tools and opening of the bond market, the approval of the stock connect "ought to assuage investors that financial reforms are still very much on the agenda, despite some recent tightening of the capital account."
In the currency market, the Japanese yen traded at 100.40 against the dollar as of 8:20 a.m. HK/SIN; the level was a touch weaker than an earlier session high of 100.14 and compared with levels above 101.00 last week. Analysts told on Tuesday they expect further yen strength in the near future, following the market's disappointment with the Bank of Japan's stimulus plans. The slightly weaker currency likely gave Japanese manufacturers some support in early trade, with Toyota shares advancing 1.09 percent, Honda up 1.96 percent and Canon up 0.31 percent. Sharp shares were up 8.26 percent, after Taiwanese manufacturer Hon Hai completed its acquisition of the Japanese electronics maker earlier this week, following regulatory approval from China's antitrust body. Elsewhere, the dollar slumped against a basket of currencies, trading at 94.804, compared with levels above 95.00 during Asian hours on Tuesday. "Investors dumped US dollars today, pushing the greenback lower against all of the major currencies," said Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, in a note late Tuesday.
"Fed Presidents [William] Dudley and [Dennis] Lockhart warned that the market is underpricing tightening and rates could rise this year ... yet based on the price action of the dollar, investors are not buying what [they] are saying," Lien said, adding the market was looking instead at soft U.S. data and using them as "arguments for why rates will remain unchanged this year." Reuters reported Tuesday New York Fed President Dudley and Atlanta Fed chief Lockhart both said in public statements that the US Federal Reserve could raise short-term interest rates at its September policy meeting.
In the commodities space, oil prices slipped again during Asian hours on Wednesday, after advancing nearly 2 percent on Tuesday, supported likely by further OPEC news and a relatively weaker dollar. Global benchmark Brent slipped 0.77 percent to USD 48.85 a barrel, after climbing 1.8 percent overnight. U.S. crude futures dropped 0.69 percent to USD 46.26, following a 1.8 percent advance on Tuesday. Reuters, citing sources at OPEC, reported that Saudi Arabia wants higher oil prices, which lent further credibility to speculation over possible OPEC action.
In company news, shares of BHP Billiton advanced 1.88 percent on the Australian market, following a 0.67 percent gain in London, as investors appeared to have been comforted by better-than-expected underlying profit print despite the mining company reporting a record loss. BHP, which announced its earnings on Tuesday after the Australian market close, said it posted a record USD 6.4 billion annual loss due to a slump in commodities and a dam disaster in Brazil.
Australian biotechnology firm CSL reported net profit after tax of USD 1.24 billion for the full year ended June 30, slipping from USD 1.38 billion booked in the previous year. Profit was dragged by CSL's acquisition of a money-losing flu vaccine business from Novartis. Underlying net profit after tax, excluding the loss from the Novartis flu vaccine acquisition, was up 5.2 percent. Investors, however, appeared unconvinced, as CSL shares sold off 5.84 percent in morning trade.
Stateside, the Dow Jones industrial average slipped 84.03 points, or 0.45 percent, to 18,552.02; the S&P 500 index ended 12 points lower, or 0.55 percent, at 2,178.15 and the Nasdaq fell 34.90 points, or 0.66 percent, to 5,227.11.
