Asian Markets Drift Lower On Profit Taking

The markets across Asia ended in the negative territory as traders preferred to lock gains following the recent rally. Traders also preferred to move to the sidelines ahead of key economic data related to employment later in the week. However, the Indian market ended in the positive territory with modest gains led by buying at lower levels

In Japan, the benchmark Nikkei 225 Index ended the session at 10,253, down 122.48 points, or 1.18%, while the broader Topix index of all first section stocks snapped its 13-day gains and ended in the red with a loss of 9.44 points, or 0.98% at 950.

Automotive stocks led the decline after Isuzu Motors reported that it swung to loss in the first quarter. The shares fell 4.68%. Among other automakers, Honda Motor fell 1.32%, Hino Motors lost 3.00%, Suzuki Motor declined 2.39% and Toyota Motor dropped 1.29%.

Retail stocks also ended weaker. Fast Retailing lost 3.47%, J Front Retailing fell 3.05% and Aeon Co. dropped 1.38%.

Trading companies ended mixed. Mitsubishi Corp. lost 1.28%. Toyoto Tsusho Corp. fell 1.57% and Itochu Corp. slumped 2.49%. However, Sumitomo Corp edged up 0.10% and Mitsui & Co., advanced 1.92%.

Shipping stocks also ended mixed. While Kawasaki Kisen added 0.80%, Nippon Yusen fell 1.20% and Mitsui OSK Lines lost 1.32%.

Banks ended in the red on profit taking. Sumitomo Mitsui Financial declined 1.93%, Resona Holdings lost 2.80%, Mizuho Financial dropped 1.30% and Mitsubishi UFJ Financial slipped 0.83%.

In Australia, the benchmark S&P/ASX200 Index ended at 4,265, having shed 44.80 points, or 1.04%, and the All-Ordinaries Index ended with a loss of 0.97% or 41.70 points, at 4,272.

On the economic front, the Australian Bureau of Statistics revealed that trade deficit narrowed during the month of June, reflecting a faster rise in exports. The trade deficit stood at a seasonally adjusted A$0.441 billion in June, smaller than the deficit of A$0.737 billion in May, and lower than economists' expectations of a deficit of A$0.8 billion.

In a separate report, the Department of Education, Employment and Workplace Relations or DEEWR, revealed that the leading indicator of employment rose for the second consecutive month in August, after falling for 18 successive months. The leading indicator for August stood at minus 0.716 compared to minus 0.781 in July.

Light sweet crude oil price for September delivery ended at $71.30 a barrel in electronic trading, down $0.12 from its previous close $71.42 a barrel in New York on Tuesday.

Retailer David Jones reported a 0.6% rise in sales for the fourth quarter. The company, however, revealed that the outlook for the future is unclear. Following the comments, the share price plunged 8.38%. Among other retailers, Harvey Norman fell 4.28%, but Woolworths managed to edge up 0.45%. Westfield Group gained 0.75% after UBS upgraded its stock rating to "neutral" from "sell".

Mining stocks ended weaker on profit taking. BHP Billiton lost 1.78%, Rio Tinto lost 3.36%, Gindalbie Metals declined 2.26%, Iluka Resources shed 1.79% and Oz Minerals fell 2.67%.

Banks also ended lower on profit taking. ANZ Bank declined 1.74%, Commonwealth Bank of Australia lost 2.88%, National Australia Bank fell 1.59% and Westpac Banking slipped 0.59%.

In oil space, Woodside Petroleum lost 1.65% and Santos shed 0.55%, Oil Search fell 2.46% and Origin Energy declined 2.44%.

Mixed trading was witnessed among gold stocks. Sino Gold lost 3.52% and Newcrest Mining fell 1.89%. However, Lihir Gold bucked the trend and advanced 2.20%.

In Hong Kong, the Hang Seng Index ended in negative territory with a loss of 301.66 points, or 1.45% at 20,495, led by banks on concerns China may initiate measures to tighten the liquidity in the mainland. Property stocks slumped on profit taking. As many as 35 of the 42 components in the Index ended in negative territory.

Among the financials, HSBC Holdings slipped 0.78%. Hang Seng Bank lost 2.75%, Bank of China fell 2.90% and Bank of Communications slumped 3.72%.

Property stocks ended lower on profit taking. Wharf-Holdings slumped 4.41%, Henderson Land fell 4.61%, SHK Property lost 4.69%, New World Development declined 4.40% and Sino Land shed 3.49%.

In South Korea, the benchmark KOSPI Index ensnapped the recent gains and ended in negative territory at 1,559, down 6.90% or 0.44%. Traders preferred to lock in gains ahead of key economic data following recent rally. Automakers, steel and bank stocks led the declines.

Buying at lower levels recouping the early losses, helped the Indian market end modestly higher despite weak cues from other Asian markets. The BSE Sensex finished the session at at 15,904, up 72.85 points or 0.46% from its previous close, and the S&P CNX Nifty gained 13.65 points or 0.29% to close at 4,694.

Among the other major markets in the region, China's Shanghai Composite Index lost 42.94 points, or 1.24% to close at 3,429, Indonesia's Jakarta Composite Index fell 43.03 points, or 1.82% to close at 2,317, Singapore's Strait Times Index lost shed 41.93 points, or 1.58% to close at 2,607 and Taiwan's Weighted Index fell 107.63 points, or 1.55% to close at 6,848.