Asian shares turn mixed, with Nikkei at a 2-week low
Asian shares turn mixed, with Nikkei at a 2-week low ·CNBC
See Kit Tang
Updated
Asian shares turned mixed on Thursday, with Japan's Nikkei 225 (Nihon Kenzai Shinbun: .N225) index deepening losses as it played catch-up after being shut for public holidays in the previous sessions.
The uninspiring lead from Wall Street overnight amid a persisting slump in commodity prices likely added to the nervousness of traders in Tokyo.
"U.S. markets have provided Asia with very little to work with, which is not surprising given the Yom Kippur holiday. Volumes through the S&P 500 (CME:Index and Options Market: .INX) were 26 percent below the 30-day average and as such, we can effectively write the session off," IG's chief market strategist Chris Weston wrote in a note released early Thursday.
Major U.S. averages closed down slightly overnight, with materials shares among the hardest-hit for the second session as bleak factory activity data out of the world's top two economies added to growth fears.
China's flash Caixin purchasing managers' index (PMI) for September fell to a six-and-a-half-year low of 47.0 in September.
Growth in the U.S. manufacturing sector showed no on-month change during September, staying at August's sluggish pace of 53, which was the weakest in almost two years, according to Markit's preliminary U.S. manufacturing PMI for September.
Nikkei skids 2.1%
The Nikkei index at the Tokyo Stock Exchange plunged to a fresh two-week low of 17,647 by mid-morning trade. The Tokyo bourse was trading for the first day of the week, following a five-day long weekend.
Auto stocks were among the biggest laggards, as they reacted to news that Volkswagen (XETRA: VOW3-DE) cheated on U.S. vehicle emissions tests. Toyota Motor (Tokyo Stock Exchange: 7203.T-JP) tanked 1.4 percent, while Nissan (Tokyo Stock Exchange: 7201.T-JP), Suzuki Motor (Tokyo Stock Exchange: 7269.T-JP) and Honda (Tokyo Stock Exchange: 7267.T-JP) slid between 1.4 and 3.6 percent.
Index heavweights also dragged down the index, with SoftBank (Tokyo Stock Exchange: 9984.T-JP) tumbling over 6 percent and Fanuc (Tokyo Stock Exchange: 6954.T-JP) plunged 3.8 percent.
Mizuho Financial (Tokyo Stock Exchange: 8411.T-JP) led losses within the banking sector with a 1.9 percent slump, while Nomura Holdings (Tokyo Stock Exchange: 8604.T-JP) and Daiwa Securities (Tokyo Stock Exchange: 8601.T-JP) receded nearly 3 percent each.
China'sShanghai Composite index trimmed gains at the end of the morning trading session.
Among other indexes, the benchmark CSI300 Index notched up 0.8 percent, while the Shenzhen Composite bounced up 1.2 percent.
In Hong Kong, the Hang Seng index turned negative, down 0.5 percent to its lowest level in two weeks. Clothing retailer Esprit (Hong Kong Stock Exchange: 330-HK) gave up early gains to lose 1.1 percent after news that the company swung to a loss for the year ended June.
ASX rises 1.4%
Australia's S&P ASX 200 (ASX: .AXJO) index steadily widened gains in early trade to recoup nearly half of Wednesday's 2.1 percent plunge.
Major lenders led the charge after being heavily sold-off in the previous session; Westpac (ASX: WBC-AU) led gains with a 1.1 percent, while Commonwealth Bank of Australia (ASX: CBA-AU), National Australia Bank (ASX: NAB-AU) and Australia and New Zealand Banking (ASX: ANZ-AU) elevated between 0.7 and 0.9 percent.
With the price of precious metal up 0.6 percent overnight, Newcrest Mining (ASX: NCM-AU) and Evolution Mining (ASX: EVN-AU) advanced more than 2 percent each.
The Australian dollar (Exchange: AUD=) fluctuated around 70 U.S. cents in Asian trade, holding near a year-to-date loss of 14 percent.
According to Kathy Lien, managing director of FX strategy for BK Asset Management, worries that a slower-growing China could take a toll on key parts of the Australian economy such as mining, plus the long rout in commodities prices and a strengthening dollar are the bearish factors keeping a lid on the Aussie.
Kospi adds 0.2%
South Korea's Kospi index narrowed gains to hover near Wednesday's one-week low.
Automotive parts supplier Hyundai Mobis (Korea Stock Exchange: 1233-KR) rallied 1.6 percent, thanks to plans for share buybacks. Logistics company Hyundai Glovis surged 4.31 percent, while Hyundai Motor (Korea Stock Exchange: 538-KR) and Kia Motors percent gained 1.3 and 0.4 percent respectively, on the back of expectations that the ongoing probe into Volkswagen's emissions-cheating scandal will deliver a boost to local carmakers.
Stationery maker Monami soared 16 percent, adding on to gains of nearly 30 percent from Wednesday following news that the company is launching a new writing utensil.
Central bank-watch
Policymakers in the Philippines and Taiwan are due to announce their policy decision later in the day.
According to Moody's Analytics, the Bangko Sentral ng Pilipinas (BSP) will likely be "comfortably on hold," keeping its benchmark interest rates unchanged at 4 percent.
"The outlook has improved with public spending programs getting under way. The Philippines also has its booming and relatively stable services sector, specifically the strong performing business process outsourcing industry to fall back on," Sydney-based Moody's economist Katrina Ell wrote in a note issued Wednesday.
Ahead of the decision, the PSE Composite Index (Philippine Stock Exchange: .PSI) fell 0.9 percent to its lowest level since September 8.
By contrast, calls are heightening for Taiwan's central bank to unveil a rate cut at its quarterly meeting on Thursday, after having kept its policy interest rate at 1.875 percent since 2011.
"The recent string of poor data from Taiwan has raised concerns that external demand will remain sluggish. We now see a 60 percent chance of a 12.5 basis-point cut in the discount rate at the September meeting," Societe Generale economist Claire Huang wrote in a note Friday.
Taiwan's weighted index turned negative by mid-morning trade and was last seen 0.8 percent lower at a two-week trough.
Large-cap Taiwan Semiconductor Manufacturing Co. (Taiwan Stock Exchange: 2330-TW) (TSMC) outperformed the bourse with a rise of 1.6 percent after it announced a higher guidance for third-quarter revenue.
Meanwhile, markets in Singapore, Malaysia and Indonesia are closed for the Hari Raya Haji holiday.
