Market Update
Asian markets were lower Thursday tracking negative cues from the U.S. overnight.
The Nikkei edged up 0.1% in the face of downbeat retail sales data. The Shanghai Composite was down 0.5% while the Hang Seng gave up 0.3%. The Sensex was down 0.8% and the All Ordinaries slipped 0.1%.
Data earlier today showed Japanese retail sales were down 4.4% in May on an annual basis, much lower than expectations for a 3.3% drop.
The yen was trading stronger at 101.61 versus the dollar, versus 101.97 yen a day earlier.
Other data in Australia showed a bigger-than-expected drop in quarterly expenditure by private businesses. Another report showed the number of newly constructed homes sold in May rose 2.9% from the previous month.
Investors looked ahead to the release of the revised first-quarter GDP data due in the U.S. later in the global trading day.
Stocks on the Move
Exporters expectedly fared weaker with index heavyweight Sony and Hitachi both down a percent each. Fanuc was down 0.3%.
Retailers were also lower after the weak sales data with Fast Retailing down 0.1% and Seven & i Holdings off 0.3%. Aeon was down 0.8%. However, J. Front and Takashimaya swung to gains and were up 1.3% and 1.2% each respectively at the time of writing.
Mitsubishi Heavy lifted 0.3%. The company’s president said he is on the lookout for possible acquisitions.
Auto shares were mostly higher in China after the government said it is planning to pull out 6 million high-polluting cars and other older vehicles by the end of this year. Great Wall Motor was up 1.3% on the mainland while its Hong Kong-listed shares advanced 2.2%. Guangzhou Automobile was up half a percent.
Insurance stocks also gained following broker upgrades for several stocks including Ping An, up half a percent, China Pacific, up 1.4%, and PICC Property & Casualty, up 0.2%.
Indian stocks fell again as investors continued to book profits.
However, Tata Motors was up 0.2% despite warning of inadequate profit for its domestic operations.
Steel Authority of India was down 4.4% after the company reported flat quarterly profit.
IT stocks were weak on the back of a stronger local currency. Infosys led losses, down 7.1%, while Wipro was down 1.3%. Infosys was also weighed by news the company’s President and board member B.G. Srinivas had submitted his resignation. Srinivas was seen by investors as a candidate for the next CEO position.
Hero MotoCorp was down half a percent after results while BHEL was 0.8% lower ahead of its quarterly earnings.
Hindalco, ONGC, Cipla, Sun Pharma, Tata Power are also all due to report results later today, among others.
Toll Holdings was up almost 5% in Sydney after the company announced job cuts.
Westfield was in a trading halt pending the outcome of a shareholder vote to split the company’s Australian business from its international business.