Market Update
Asian markets traded mixed Wednesday, weighed slightly by negative cues from a weak overnight session on Wall Street.
The Nikkei was down 0.6%. The Shanghai Composite edged up 0.1% while the Hang Seng slipped 0.1%. The Sensex also edged up 0.1% at open. The All Ordinaries was down 0.3%.
Earlier in Japan, the country’s central bank held monetary policy steady as expected, unanimously voting to keep the current monetary base target. The BoJ also maintained its economic outlook for a continued moderate recovery. The BoJ also said “business fixed investment has increased moderately as corporate profits have improved.”
Data showed Japan’s trade deficit narrowed in April to 808.8 billion yen versus a gap of 877.4 billion yen a year earlier and a 1.7 trillion yen deficit in March. The yen gained after the solid exports growth figures.
Another report showed the tax hike this month had a modest impact on department stores with data showing sales dropped 12% from a year earlier, marking the first decline in six months.
In Australia, data showed the wage price index remained unchanged in the last quarter.
Stocks on the Move
Mitsui Fudosan fell 2.5% on a report the company’s interest-bearing debt is set to increase as it plans more investments in expectations of higher land prices.
Exporters were mostly lower. Sony fell 1.7% while Konami was down 3.2%. Toshiba was down 2.5% while Sharp declined 1.1%.
Sinopec was up 1.8% in Hong Kong on reports the firm was contemplating participation in its shale gas business from private investors.
Top Hang Seng weighted component HSBC was a drag on the index, down almost a percent as it traded without rights to its latest dividend.
Lenovo was up 1.6% ahead of its results due later in the day while Galaxy Entertainment Group was up 1.7% after it posted a 33% increase in earnings.
In Mumbai, the markets were marginally lower as investors booked profits after the heady rise of the last few days fuelled by optimism of a new government.
SSLT was down 2.7%, followed by Coal India, down 2.3%.
Hindalco, Airtel, BHEL, L&T, Tata Power and others were all down over a percent each.
Miners fell in Sydney after another drop in iron-ore prices, as well as in prices of copper and nickel.
BHP Billiton gave up 1.2% while Fortescue Metals was 2.4% lower. OZ Minerals was down 2.2% and Atlas Iron weakened 3%. Rio Tinto was down 1.6%.
Telstra was up 0.8%, hitting a new nine-year high.