Asian markets ended the trading session Tuesday on a weak note, despite positive cues from Wall Street in the previous session, as traders remained cautious ahead of the FOMC announcement later in the day that might provide more clues about the economic health in the US and the global economy. Better-than-expected trade surplus data from China following drop in imports, and disappointment from Bank of Japan related to no mention of measures for arresting dollar's weakness against the yen also impacted market sentiment. Volumes were relatively weaker as most of the traders preferred to stay away in the sidelines.
In Japan, the benchmark Nikkei 225 Index fell 21.44 points, or 0.2%, to 9551, while the broader Topix index of all First Section issues slid 2.94 points, or 0.3%, to 855.
On the economic front, the policy board of the Bank of Japan unanimously decided to retain the overnight call rate at 0.10%, in line with market expectations. The BOJ also held off from unveiling further easing measures, despite fears the strong yen could derail the export-driven recovery. The bank once again repeated its vow to fight deflation and promised to maintain the extremely accommodative financial environment.
A preliminary report released by the Japan Machine Tool Builders Association revealed that machine tool orders surged 144.8% year-on-year in July, following 143.8% rise in June. The report further noted that domestic orders increased 101.7%, while external orders rose 176.1% during the month.
Real estate stocks ended in negative territory. Sumitomo Realty & Development declined 2.33%,Mitsui Fudosan lost 1.24%, Mitsubishi Estate fell 1.08%, Tokyu Land Corp. slipped 1.18% andHeiwa Real Estate was down 1.85%.
Mixed trading was witnessed among shipping related stocks. Mitsui OSK Lines managed to end in positive territory with a gain of 0.17%. However, Kawasaki Kisen Kaisha slipped 0.56% and Nippon Yusen declined 1.41%.
Mixed trading was also witnessed among trading stocks. Sumitomo Corp. advanced 0.79% andMitsui & Co. Ltd added 0.25%. Sojitz Corp. remained unchanged from previous close. However,Toyota Tsusho Corp. edged down 0.15%, Mitsubishi Corp. declined 0.87%, Marubeni Corp. shed 0.62% and Itochu Corp. was down 0.41%.
In Australia, the benchmark S&P/ASX200 Index declined 54.20 points, or 1.18%, and closed at 4,541 points, while the All-Ordinaries Index ended at 4,563, representing a loss of 52.60 points, or 1.14%.
On the economic front, data released by the National Australia Bank revealed that business confidence slipped to its lowest level in more than a year in July. The confidence level slid to 2 in July from 4 in June The bank attributed sharp fall in new orders as the primary reason for the decline, albeit partly offset by the boost in mining sector following the compromise agreement struck on the resource super tax.
Banks ended in negative territory after National Australia Bank provided a cautious outlook for the year after reporting first quarter results which were in line with analysts' estimates.
ANZ Bank declined 2.03%, Commonwealth Bank of Australia slipped 0.55%, National Australia Bank lost 2.20% and Westpac Banking was down 2.18%. Investment banking companyMacquarie Group fell 1.81%.
Mining and metal stocks also ended weaker. BHP Billiton slipped 1.97%, Rio Tinto shed 1.89%,Fortescue Metals declined 0.65%, Gindalbie Metals plunged 4.63%, Iluka Resources edged down 0.18%, Macarthur Coal slumped 4.11% and Murchison Metals was down 4.34%.
Oil stocks also ended in negative territory. Woodside Petroleum fell 2.33%, ROC Oil plunged 6.02%, Oil Search Ltd slipped 1.34% and Origin Energy was down 0.31%. However, Santos Ltdbucked the trend and ended in positive territory with a gain of 1.04%.
Mixed trading was witnessed among gold stocks. While Lihir Gold managed to remain unchanged from previous close, Newcrest Mining ended in positive territory with a marginal gain of 0.06%.
In Hong Kong, the Hang Seng Index ended sharply lower at 21,474, down 327.99 points, or 1.50%, as traders resorted to profit taking at higher levels and moved to the sidelines ahead of the key Federal Reserve meeting in the US. Economic data from mainland China which revealed that trade surplus surged to a 18-month high in July following moderation in imports raised concerns that the Chinese economy is slowing down its growth. Almost all the stocks ended in the negative territory, taking cues from other markets in the neighboring region.
Profit taking following recent sharp gains weighed on the Indian market on Tuesday. Subdued global cues ahead of the U.S. Federal Open Market Committee (FOMC) meet also dampened sentiment.The 30-share BSE Sensex fell 68 points or 0.37% to finish at 18,220 and the 50-share Nifty closed at 5,461, down 25 points or 0.46%.
Among the other major markets open for trading, China's Shanghai Composite Index plunged 77.26 points, or 2.89% to 2,595, Taiwan's Weighted Index declined 57.75 points, or 0.72%, to close at 7,977, Indonesia's Jakarta Composite Index slipped by 25.44 points, or 0.83%, to close at 3,057, and Singapore's Strait Times Index ended in negative territory with a loss of 10.77 points, or 0.36%, at 2,984.
Source:Investorshub
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