Asian session close: market update

CMC Markets

It was a quiet session in the Asian market as a scarcity of headlines lead to a mixed session and tight trading ranges across most asset classes. Risk assets have been en vogue the past 3 sessions as investors are still hopeful of stimulus from the United States and a coordinated effort to bring down bond yields for struggling European economies so it was not surprising to see a day of consolidation as markets decided their next move. Australian and Japanese equity markets ground higher after missing yesterday’s late rally to finish the day up 0.5% and 0.9% respectively while Hong Kong and Singapore have come off the boil slightly in the afternoon session to be down 0.2% and 0.6%. Singapore has a public holiday tomorrow to celebrate National Day so investor have seen this as a good chance to lock in some recent profits ahead of what will be a 4 day weekend for many. Fraser and Neave has again outperformed the market and is up close to 3% as the bidding war continues between Heineken and Thai beverages for the stake F&N hold in Asia Pacific Breweries but even this is not enough to keep the Index in positive territory as profit taking has left all of the major sector groups in negative territory. In Hong Kong Esprit has continued its roller coaster ride in coming off over 10% today after rallying as much as 35% yesterday. Cathay Pacific has also disappointed the market today when it released its first half report today which came in at a loss of HKD$935million versus analyst expectations of a profit, their share price went as low at $11.92 shortly after returning from the lunch break, before regaining some ground and finished the day down 4.3% Gold has drifted lower after 3 solid days of gains and is hovering around $1,607/ oz. It is a big day of economic data from China tomorrow starting with the Producer Prices and Inflation data in the morning with PPI expected to continue to slide with a reading of -2.5% y/y expected and and another month of deflation with a reading for inflation predicted to come in at -0.1%. After lunch they will also release their Retail Sales data which is expected to come in roughly the same as the June release and their Industrial Production which is expected to come in at 9.8%. Japan machine orders for June are also due tomorrow with an expectation of a bounce of around 12% after recording a drop of -14.8% on the previous reading. Lastly there is also unemployment data in Australia where the market is expected to return to positive jobs creation of 10K as the effects of their monetary stimulus filter through the economy, and New Zealand where 2nd Quarter unemployment is expected to drop to 6.5% from 6.7% previous.