INGOT Brokers AU | Asian market report (2017-09-14)

Asian market report (2017-09-14)


Asian markets witnessed a bearish market on Thursday’s session, pressured by the release of downbeat data in China, while jobs data in Australia beat analyst expectations by a large margin.

In the U.S, tax reform was back to headlines after white house speaker Paul Ryan said that a tax reform plan will be released by the Republicans on the week of September 26th.

Meanwhile, Risk Sentiment is on the rise yet again, after North Korea has threatened to sink Japan and to destroy U.S after Korea-Asia-Pacific peace committee was quoted saying that the United States should be “beaten to death like a rabid dog “and that it will “reduce the US to Ashes and darkness.”

Regarding economic data in China, industrial production came in at 6 percent, lower than expectations by 0.6 percent. While fixed asset investment for August came in at 7.8 percent, below expectations of an 8.2 percent gain, and lower than the previous figure of an 8.3 percent increase.

The industrial production was mainly pressured by weakness in coal production due to policies conducted by the Chinese government that reduce excess supply in industries that may harm the environment negatively.

Regarding Chinese indices, Shanghai Composite dropped by 0.38 percent to settle at 3,371.43 points while Hong Kong’s leading index Hang Seng fell by 0.42 percent to trade at 27,777.20 points.

Elsewhere east of China in the Korean Peninsula, South Korean Benchmark Kospi surged by 0.93 percent to end the session at 2,105.00 the close.

Japan Stock Market (Nikkei 225)

Japan's leading index Nikkei 225 closed lower after three consecutive days of gains; the index lost 0.31 percent to settle at 19,804 points at the close.

The index fell after hedge funds and foreign investors started covering their position ahead of the rising geopolitical tension with North Korea.  

Regarding individual stocks, Nisshinbo Holdings plunged by 9.8 percent due to technical selling after It jumped by 26 percent on Wednesday session, when the company said it would roll out platinum-free fuel-cell catalysts, which might have the potential to cut the high prices of fuel-cell cars.

Toshiba said on Wednesday that it had entered into an understanding in negotiations with Bain Capital to sell Toshiba Memory Corporation, Toshiba also said it would continue considering a separate offer by Western Digital Toshiba’s stock closed down 4.53 percent.

Australian Stock Market (ASX 200)

The Australian stock market edged lower in Thursday’s session, Australian benchmark index ASX 200 shed 0.1 percent to settle at 5,738.68 points. The index found pressure from losses in the Metals & Mining, Healthcare, and Materials sectors led shares lower.

In terms of stock news, Myer Holdings reported an almost 2 percent decrease in underlying profit for the full year. As statutory profits fell by 80 percent. However, the department store giant's shares rose by 2 percent.

Moreover, Vocus Group's shares are added 0.6 percent despite lawsuits are pressed against the company for breaching disclosure obligations.

Regarding employment data in Australia, the Aussie economy added 54,200 jobs in August; while the unemployment rate held steady at 5.6 percent.


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