Asia pacific stocks end mixed ahead of US jobs

MoM Team / Mumbai, Feb 03, 03:22 PM

The Asia pacific stock markets ended mixed on Friday, February 03, 2012, with the MSCI Asia Pacific Index fell 0.2% to 124.30, paring this week's advance to 1%, as investors opted for withdrew recent gain after weaker than expected corporate earnings worldwide and lack of progress in Greece debt swap deal, and cautious ahead of US jobs data later in the global day.



Risk sentiment also paused after weaker than expected China non-manufacturing data. The China Federation of Logistics and Purchasing (CFLP) non-manufacturing PMI index fell to 52.9 in January from 56 in December.



Most of the regional bourses traded in narrow range as participant opted wait and see stance for the employment data from US as well as Eurozone services PMI and retail sales data, and UK services PMI data.



Market economist whispering that US jobs data will show 150k job growth in January, down from December's 200k. Unemployment rate is expected to be unchanged at 8.5%. Regarding the situation in Greece, Finance Minister Venizelos said earlier in the day that talks with private creditors on a bond swap deal were one step away.



The Australian stocks lost ground for the fourth time in five days today, with the broader All Ordinaries index down by 0.3% and the S&P/ASX200 index fell 0.4% as investors opted to book prior day gain. For the week, the S&P/ASX200 fell 0.8%, chalking up its first drop in five weeks. The All Ordinaries dropped 0.65% for the week.



The Australian Housing Industry Association (HIA) trades report, released on Friday, showed a trend of modest over-supply in the December quarter. The HIA trade availability index was at +0.04 in the December quarter, following a reading of +0.06 in the September quarter, suggesting that slight over-supply was still an issue, but was moderating. Six of the 13 housing trades were moderately over-supplied in the December quarter, while one was in equilibrium, and the remaining six were under-supplied. The HIA trade prices index was eased by 0.7% over the December quarter, to be down by 0.4% over the year.



The Federal Chamber of Automotive Industries of Australia reported that 76,783 cars were sold last month that was a 4.3% improvement on a year ago. 4-wheel drives continue to remain extremely popular with Australians and have experienced a 29.9% increase in sales over the past 12 months.



The Japanese stock market ended lower, with the benchmark Nikkei Stock Average declined 0.5% to 8,831.93 on Friday, February 03, 2012, as profit taking emerged amid disappointed over corporate earnings announcement and yen strength against the major currencies. For the week, the benchmark index ended fractionally 0.1% lower, but remains up 4.5% year-to-date.



The Nikkei225 index came under profit-taking pressure as participants opted to materialize yesterday gain after weaker than expected corporate earnings. Firms' earnings were impacted due to the Great East Japan earthquake, the severe flooding in Thailand, the yen's strength and other external factors. Local market had gained 0.8% prior day in response to encouraging economic data in the US, Europe and China and hopes of an orderly debt restructuring in Greece.



Nippon Sheet Glass Co slumped 12% to 132 yen after the glassmaker revised down its earning forecast to a loss of 3 billion yen for the fiscal year ending March 31, 2012, from previous forecast of net income of about 14 billion yen, citing slumping demand in Europe. The company also said it will cut 3,500 jobs.



Sankyo Co dropped 3.9% to 3,615 yen after the casino operator revised down its fiscal year ended March 31, 2012 net income forecast to 21 billion yen on Thursday, down by 5 billion yen from May 13, 2011, earning projection of 26 billion yen. Company said its sales volumes of pachinko machines and pachislot machines for the full year of fiscal 2012 were revised from 369,000 units to 322,000 units and from 169,000 units to 100,000 units, respectively. Company reported a net income for the nine-month ended December 2011 was 10.26 billion yen, down by 62% from corresponding period year earlier of 27.03 billion yen.



Sumitomo Metal Industries declined 2.2% to 135 yen after the steelmaker expected to book a net loss of 55 billion yen in the fiscal year ending March 31, citing a drop in the value of its investments. The company also reduced its full-year dividend to 2 yen per share from planned 3.5 yen.



Sony Corp. advanced 10.5% to 1,435 yen after the consumer-electronics maker incoming Chief Executive Officer Kazuo Hirai said it would close less- competitive businesses and review its portfolio. Sony Corp warned earlier this week that it would book worse-than-expected $2.9 billion in the fiscal year ending March 31.



Sumco Corp. rebounded 17.4% to 675 yen on bargain hunting, after saying it will cut 1,300 jobs, a 15% of its workforce and it will sell 45 billion yen of preferred shares to companies including Sumitomo Metal Industries and Mitsubishi Materials. Sumco suffered limit loss of 100 yen to 575 yen prior day after company said that it may incur extraordinary loss of approx 58.2 billion yen as business restructuring expenses in relation to the plan.



Hitachi gained 7.5% at 429 yen after the firm maintained its current fiscal-year guidance. Company reported a 45% y-o-y fall in net profit for the third-quarter ended December 2011.



The Chinese market ended higher, with the Shanghai Composite Index climbed up 0.77%, on the top of robust 2% gain prior day, as rebound accelerated in afternoon trading on rumor that the central bank may announce policy easing measures during weekend to boost economic growth after weakness in non-manufacturing PMI data for January. Upward move in the index was accelerated by gains from the banks, gold miners, and agriculture stocks. The index rose 0.5% this week.



The China Federation of Logistics and Purchasing (CFLP) released non-manufacturing PMI data on Friday, showing that non-manufacturing business activity index fell to 52.9 in January from 56 in December. However, the reading above 50 indicated expansion of the sector. Meanwhile, the new orders index fell below the neutral-50 mark, falling by 2 points to 48.5, suggesting a decline in the number of new work received in January.



Chinese banks and insurers continued outperforming the index for the second consecutive session, as investor chased for bargain hunting due to their attractive valuations following recent underperformances and on prospects the central bank may lower reserve-ratio requirements. Among banks, China Construction Bank Corp added 0.8% to 4.89 yuan and China Merchants Bank Co. 0.9% to 12.98 yuan. Among insurance companies, China Pacific Insurance added 2.1% to 21.86 yuan, Ping An Insurance 1.3% to 40.15 yuan, and China Life Insurance 1.2% to 19.32 yuan. Securities companies dropped on concerns about earnings outlook due to falling trading turnover. According to brokers' annual reports, the total profits of 70 brokers in 2011 plunged 39.79% compared to 2010. GF Securities erased 0.2% to 24.75 yuan and Industrial Securities 0.8% to 10.66 yuan.



Zijin Mining gained 0.9% to 4.50 yuan after forecasting its FY11 net profit has risen 20% on year to 5.80 billion yuan, buoyed by higher prices for gold and other major products.



In India, the Key benchmark indices surged to hit their highest level in more than 12 weeks in mid-afternoon trade as data showing stepping up of buying of Indian stocks by foreign institutional investors (FIIs) recently boosted sentiment. A private survey showing that the services sector grew at its fastest pace in six months in January 2012, also supported market. The barometer index, BSE Sensex, was up 107.45 points or 0.62%, up close to 180 points from the day's low and off about 25 points from the day's high.



Indian index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Cement stocks extended Thursday's gains after monthly dispatches data. Realty stocks extended recent gains. Auto stocks rose on good vehicle sales in the month just gone by. Dr Reddy's Laboratories gained after strong Q3 results. The market breadth was positive.



Among other Asian bourses, the Hong Kong hang Seng Index advanced 0.08% to 20,756.98. Indonesia Jakarta Composite index was edge down 0.02% to 4,015.96. Singapore Strait Times index added 0.58% to 2,917.95. South Korea KOSPI was down 0.6% to 1,972.34. Taiwan TAIEX index escalated 0.3% at 7,674.99.

Source: Capital Market