Asia: Australian shares rally despite commodities concerns

Asian equities markets began the week on a mixed note, as solid growth in Australia was offset by a decline in China.

Driven by consumer stables stocks, Australia’s ASX gained 0.39% to reach 5,276.4, its highest close this month.

The gain came despite a 1% and 0.4% drop in materials and energy stocks respectively, with BHP Billiton losing 2.34%, while Newcrest Mining fell 2.21%. Australia’s commodities sector has lost 7% over the last three months and analysts warned things could get even worse for Asian markets, as concerns over global supply glut.

“The regional sentiment is hindered by pain in the commodity space after Venezuela said it sees oil at mid-$20’s if OPEC refuses to intervene to counter the global supply glut,” said Michael Van Dulken, head of research at Accendo Markets.

However, there was more positive news for department store chain Myer Holdings, which rose 3.9% after reporting sales in the 13 weeks to 24 October rose 3.4% year-on-year.

China’s Shanghai Composite Index fell 0.56% as investors grew jittery about new firms listing following a four-month ban for the initial public offering market.

Ten companies were expected to list on the Shanghai and Shenzhen stock exchanges, as the government lifted the moratorium it had imposed during the summer sell-off.

Meanwhile, Hong Kong’s Hang Seng Index fell 0.39%, dragged lower by a 17% plunge in Goutai Junan International.

Shares in the brokerage have slumped after the firm said it has failed reach chairman and chief executive Yim Fung since 18 November.

“It’s hard to avoid that people may associate the incident with the recent crackdown on the financial industry by mainland authorities,” Ronald Wan, chief executive at Partners Capital International in Hong Kong, was quoted as saying by the Telegraph.

“Investors will be concerned about the company’s operations. It will also affect sentiment over the brokerage industry as a whole as the industry is now under greater scrutiny.”

Elsewhere, South Korea’s Kospi gained 0.7%, while Japanese markets were closed for a bank holiday.

On the currencies front, Chinese authorities fixed the onshore yuan at 6.3867 dollar, the weakest level since late August.

The yen declined 0.20% against the dollar, while the Australian dollar slumped 0.69% against its US counterpart.