By Investors Hub
Asian markets ended mostly lower on Thursday, with investors digesting a slew of economic reports from the region and reacting to an interest rate hike in the U.S.
Although most of the markets in the region started off on a slightly positive note, many of these gave up early gains. In China, the central bank’s decision to increase rates on open market operations weighed on sentiment.
The Australian market failed to hold early gains and ended flat, although a few front line stocks managed to register handsome gains.
The benchmark S&P/ASX 200 Index declined 10.50 points or 0.2 percent to 6011.30, snapping a five-session winning streak.
Shares of mining companies Independence Group and Resolute Mining Limited gained nearly 6.5% each. West Areas, Whitehaven Coal and Syrah Resources gained 4.75 – 5.4 percent.
Myer Holdings plunged 9.6 percent following a profit warning by the company. Metcash, RTL Food, Credit Corp and Qantas declined 2.8 – 3.3 percent.
In economic news, the unemployment rate in Australia came in at a seasonally adjusted 5.4 percent in November, the Australian Bureau of Statistics said. That was in line with expectations and unchanged from the October reading.
The Australian economy added 61,600 jobs last month, shattering expectations for a gain of 19,000 jobs following the addition of 7,800 jobs in the previous month.
Save for a few minutes at the start of the session, the Japanese were in negative territory, despite reasonably encouraging economic data. The benchmark Nikkei 225 Index ended down 63.62 points or 0.3 percent at 22,694.45.
Rakuten declined nearly 5 percent. Konica Minolta, Yahoo Japan, Furukawa Electric, Chiyoda Corp, Daikin Industries, TDK Corp, Casio Computer, Concordia Financial Group, Nikon Corp, Credit Saison, Resona Holdings, Softbank Group, Mizuho Financial Group and Matsui Securities ended lower by 1 to 3 percent.
Data released by IHS Markit showed manufacturing activity in Japan to have expanded at the fastest pace in nearly four years in December. The Nikkei flash Manufacturing Purchasing Managers’ Index climbed to 54.2 in December from 53.6 in November.
On the price front, input price inflation eased in December, while output price inflation accelerated to a 41-month high, data showed.
According to a report from the Ministry of Economy, Trade and Industry, Japanese industrial production rebounded as initially estimated in October, rising a seasonally adjusted 0.5 percent month-over-month. In September, production had declined 1.0 percent.
In China, the Shanghai Composite Index declined 9.46 points or 0.3 percent to 3,293.58. Hong Kong’s Hang Seng Index declined 55.72 points or 0.2 percent to settle at 29,166.38.
The Chinese central bank unexpectedly lifted its rates on open market operations following the Federal Reserve’s decision to tighten its policy rates. The People’s Bank of China raised its 7-day and 28-day reverse repo rates by 5 basis points to 2.50 percent and 2.80 percent, respectively. The bank raised the rate on its Medium-term Lending Facility by 5 basis points to 3.25 percent.
Data released by the National Bureau of Statistics showed industrial production in China to have grown 6.1 percent year-on-year in November, slower than the 6.2 percent increase recorded a month earlier.
Meanwhile, retail sales grew at a faster pace on domestic consumption, improving to 10.2 percent, up 0.2 percent from the previous month.
Adedapo Adesanya