RTTNews - Asian markets ended in negative territory on Monday on concerns about growth following weaker than expected jobs report in the U.S, thus denting the hopes of recovery. Commodity prices also moved southward on demand concerns. Most of the traders across markets preferred to stay on the side lines ahead of the earnings season and preferred to wait for further cues before taking positions.
The U.S market was closed for holiday on Friday after drifting down sharply on Thursday following weak jobs report. On thursday, the Dow closed down by 223.32 points or 2.6% at 8,281, the Nasdaq fell by 49.20 points or 2.7% to 1,797, and the S&P 500 closed down 26.91 points or 2.9% at 896.
The Nikkei 225 Average opened sharply lower at 9,738 compared to its previous close of 9,816, and continued to drift in the negative territory on concerns about the global recovery. Softer metal and oil prices as well as thin volumes following wait-and-watch approach of the investors helped the index linger in the negative territory for the whole day. The index ended at 9,681 representing a loss of 135.20 points, or 1.38%. The broader Topix Index of all first section issues shed 8.20 points, or 0.89% percent, and closed at 912.
Light sweet crude oil price for August delivery shed $2.55 a barrel and ended at $64.18 in Asian trading after having ended Thursday's session in New York at $66.73 amid concerns about global recovery.
Banks and metal stocks dragged the indices lower. Among the banks, Mitsubishi UFJ slipped 0.67%, Mizuho Financial edged down 0.44%, Resona Holdings fell 0.44% and Sumitomo Mitsui lost 0.77%.
Among metal stocks, Pacific Metals Co., lost 5.19%, Nippon Light Metal Co., fell 3.81%, and Sumitomo Metal Mining declined 3.24%.
Shipping stocks ended weaker following drop in shipping rates. Mitsui O.S.K declined 4.38% , Nippon Yuesen fell 3.41% and Kawasaki Kisen lost 2.34%.
Retail stocks also ended weaker on demand concerns. Seven & I dropped 1.83%, Fast Retailing Co., fell 3.06% and department store operator Isetan Mitsukoshi Holdings Ltd. Edged down 0.95%.
Oil and trading companies also ended weaker. Inpex declined 2.99%, Nippon Oil Corp fell 2.82% and Showa Shell lost 3.13%.
In Australia, All Ordinaries Index opened lower at 3,819 compared to previous close at 3,827 and drifted sharply lower, following soft commodity prices and concerns about global recovery. The index continued to remain in the negative territory for the whole session and ended the day in the negative territory with a loss of 42.40 points, or 1.11%, at 3,784. The benchmark S&P/ASX 200 Index followed a similar trend and ended at 3,784, representing a loss of 44.50 points, or 1.16%.
On the economic front, a monthly report from TD Securities and the Melbourne Institute revealed that a gauge measuring inflation in the country increased 0.4% in June compared to May. According to the report, inflation was up 1.4% on an annual basis for June. A separate report released by the ANZ Bank revealed that the total number of job advertisements fell 6.7% in June compared to the previous month.
Metal prices in the international market also drifted lower on demand concerns. BHP Billiton shed 2.42%, Rio Tinto fell 2.22%, Orica Energy declined 1.99% and Fortescue Metals lost 3.69%.
Oil stocks declined on lower crude prices. Woodside Petroleum declined 1.40%, Santos lost 3.97% and Oil Search fell 1.30%.
Gold stocks also ended in the negative territory. Lihir Gold lost 1.03%, Newcrest Mining slipped 0.40% and Sino Gold fell 2.10%.
Financial stocks also ended lower on growth concerns. ANZ Bank lost 1.05%, Commonwealth Bank Australia edged down 0.38%, National Australia Bank slipped 0.09% and Westpac Banking fell 1.24%.
Among retailers, David Jones fell 2.46% and Harvey Norman lost 4.29%. However, Woolworths managed to end in the green with a gain of 0.77%.
In Hong Kong, the Hang Seng Index opened sharply lower at 18,020 compared to its previous close at 18,203, mirroring the weak sentiment across the region and lower commodity prices. following losses in Wall Street on weak employment data. The index managed to cross the unchanged line in the morning session led by china-related stocks on optimism about growth in mainland China. However, the gains could not be sustained in lackluster trading as traders preferred to take profits and stay in the sidelines ahead of the earnings season. The index finally ended the session in the negative territory with a loss of 223.99 points, or 1.23%, at 17,979.
Resource stocks ended in the negative territory on softer commodity prices. Coal-miner China Shenhua declined 2.07%, Aluminum Corp of China, or CHALCO, lost 1.52%, PetroChina fell 2.23%, and CNOOC shed 2.24%.
Property stocks showed mixed response. While Hang Lung Property edged up 0.63% and Sino Land gained 1.68%, Wharf Holdings lost 1.79%, SHK Properties fell 1.36% and New World Development shed 2.54%.
Among financial stocks, HSBC Holdings lost 1.09%, Hang Seng Bank edged down 0.09%, China Construction Bank lost 2.52%, Bank of China declined 2.43% and Industrial and Commercial Bank of China fell 1.69%; However, BOC Hong Kong bucked the trend and 1.69%. .
In South Korea, the benchmark KOSPI Index ended in the positive territory defying weak global cues and growth concerns. The market opened nearly flat at 1,419 compared to previous close at 1,420 on weak cues. However, the index moved above the unchanged and managed to stay in the positive territory for the session amid volatile trading. Technology related stocks led the gains amid thin volumes. The index finally ended with a gain of 8.90 points or 0.63% at 1,429
Memory-chipmaker Samsung Electronics led the gains after reported a better-than-expected earnings estimate for the second quarter. The stock surged 5.49%. Electronics giant LG Electronics gained 3.8% and LG Display added 0.89%.
Among automakers, Hyundai Motor advanced 1.1%. Kia Motor surged 3.89% after reporting strong sales for last month.
Financial stocks ended weaker on concerns about recovery. KB Financial Group lost 2.06%, and Hana Financial Group fell 1.83%. However, Shinhan Financial Group remained unchanged at previous close.
In India, the stock market ended sharply lower on the budget day after market's expectations for more sops and reliefs did not find the expected place in the budget released by the Finance Minister, Pranab Mukerjee.
The BSE Sensex finished at 14,043, down 869.66 points, or 5.83% from its previous close and the Nifty Index lost 258.55 points, or 5.84% points, to close at 4,164.
Among other major markets in the region, China's Shanghai Composite Index gained 36.30 points, or 1.18% to close at 3125. However, Indonesia's Jakarta Composite Index lost 1.94% or 40.29 points to close at 2035, Taiwan's Weighted Index fell 15.49 points, or 0.23%, to close at 6,650, and the Strait Times Index in Singapore lost 33.66 points, or 1.46% to close at 2,266.
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