Asian markets tread water as investors digest regional earnings; ECB ahead
The Nikkei 225 edged up 0.11 percent. The benchmark index had snapped its 16-day win streak on Wednesday, after closing lower by 0.45 percent at 21,707.62.
Across the Korean Strait, the Kospi was off 0.05 percent as investors digested quarterly earnings reports from blue-chip names, including SK Hynix.
Down Under, the S&P/ASX 200 shed 0.1 percent, with the heavily weighted financials sub-index trading lower by 0.3 percent after ANZ posted its full-year profit.
The Hang Seng Index was off 0.03 percent while mainland markets made moderate gains. The Shanghai Composite climbed 0.46 percent and the Shenzhen Composite gained 0.398 percent.
Markets in Thailand are closed on Thursday.
Corporate earnings releases were in the spotlight for markets in the region. Notable names on the earnings calendar included SK Hynix, ANZ and OCBC.
South Korea’s SK Hynix announced Thursday that its third-quarter operating profit rose 415 percent compared to one year ago. Profit for the period came in at 3.7 trillion won ($3.3 billion), a touch below the 3.8 trillion won projected in a Thomson Reuters StarMine SmartEstimate survey. The chipmaker’s stock traded lower following the announcement, falling by 1.22 percent.
Over in Singapore, OCBC said Thursday that third-quarter net profit grew 12 percent to S$1.06 billion. The Singapore bank attributed strength in its earnings to its banking, wealth management and insurance franchises, but highlighted “continuing stress” in the oil and gas sector. OCBC shares were flat.
In Australia, ANZ said on Thursday its full-year net profit for the year ending September 30, 2017, rose 12 percent to 6.41 billion Australian dollars ($4.94 billion), a touch below the A$6.87 billion forecast in a Thomson Reuters I/B/E/S survey. The bank’s full-year cash profit rose 18 percent to A$6.94 billion ($5.35 billion). ANZ shares underperformed other banking stocks, tumbling by 1.34 percent.
Other market movers included the fall in Qantas shares after the airline said in its first-quarter trading update that conditions in the second-half of the year were expected to be tougher. Qantas stock fell 7 percent before paring some losses to trade lower by 1.02 percent.
Ahead, global markets are also focused on the conclusion of the European Central Bank’s meeting on Thursday. Investors awaited details from the central bank regarding tapering in its asset buying program.
“Between the amount of bonds they plan to buy per month to the duration of the program and their forward guidance, there are no shortage of ways for Mario Draghi to placate the doves and the hawks,” Kathy Lien, managing director of FX strategy for BK Asset Management, said in a note.
Ahead of the meeting, the euro edged up to trade at $1.1827 at 11:24 a.m. HK/SIN. The currency had fallen to its lowest levels in around two weeks earlier this week.
Also of note in markets was news about China’s first dollar-denominated sovereign bond offering in more than a decade. A total of $2 billion in government debt will be issued in two tranches, Thomson Reuters’ IFR reported.
In other corporate news, Japan’s Asahi Group will be offloading soft drink arm LB, which was acquired more than ten years ago, Nikkei Asian Review reported. Asahi stock was last up 0.08 percent.
Meanwhile, the Australian dollar recouped some losses after tumbling when inflation missed expectations on Wednesday. The Aussie dollar traded at $0.7713 at 11:22 a.m. HK/SIN after falling as low as $0.7694 in the session. That compared to levels around the $0.78 handle seen at the beginning of this week.
The Canadian dollar steadied after falling overnight. The loonie last traded at $1.2786 to the dollar after hitting as low as $1.2809 in the session. That compared to levels around the $1.26 handle earlier this week.
The greenback, meanwhile, was mostly stable against a basket of currencies. The dollar index stood at 93.561 at 11:21 a.m. HK/SIN, after trading as high as 94.008 in the overnight session. Against the yen, the dollar edged down to 113.49.
In the U.S., stocks closed lower on Wednesday on disappointing earnings releases, with the Dow Jones industrial average recording its largest single-day fall since September 5. The 30-stock index lost 122.30 points, or 0.48 percent, to close at 23,329.46.
Yields on the 10-year U.S. Treasury note stood at 2.43 percent at 11:26 a.m. HK/SIN after touching a seven-month high overnight following strong data releases stateside. New home sales jumped 18.9 percent in September while durable goods orders rose 2.2 percent.
“Softer earnings reports, concerns over the [next] Federal Reserve chair, the upcoming ECB meeting and renewed bickering in U.S. political circles raising concerns over the passage of tax reform were all raised as drivers,” ANZ Research said in a morning note.
Source: CNBC
