Asian markets saw a mixed outing on Monday with investors treading somewhat cautiously due to fresh concerns about the financial health of some European nations following a rating downgrade on Spain by rating agency Fitch.
Though some of the markets in the region started off on a reasonably firm note, investors chose to exit at higher levels, thus capping gains to a notable extent. Also, with the U.S. markets to remain closed today for the 'Memorial Day' holiday, investors were not too keen on indulging in any significant buying in some parts of the region.
The Australian market remained choppy right through the day. There were a few rounds of buying but none of them was good enough to pull the market out of the red.
Financial and mining stocks were among the prominent losers, while healthcare and consumer staples stocks edged higher. Energy, consumer discretionary and property trust stocks ended on a mixed note.
The benchmark S&P/ASX 200 index ended at 4,430, recording a loss of 27.8 points or 0.6% and the broader All Ordinaries index settled at 4,454 with a loss of 25.4 points or 0.6%.
Banking sector majors Commonwealth Bank of Australia, ANZ Bank, National Australia Bank and Westpac Banking Corporation ended with notable losses. Macquarie Group shares also ended on a weak note.
Among top miners, BHP Billiton and Rio Tinto ended notably lower, while Newcrest Mining closed with a modest gain. Energy stocks Woodside Petroleum, Santos and Oil Search also closed weak.
Sigma Pharmaceuticals Ltd shares gained about 7% after the company entered a confidentiality agreement with Aspen Pharmacare Holdings Ltd, which has made a A$707 million offer to buy the drug maker. Under the agreement, Aspen will be allowed to conduct due diligence, Sigma said in a statement on Monday. Sigma also agreed not to solicit rival offers for the next four weeks of limited exclusivity. The company said it continued to recommend that shareholders take no action with regard to Aspen's bid. The due diligence process might result in a formal proposal from Aspen, Sigma said.
Shares of private hospitals operator Healthscope Ltd ended nearly 5% up following an announcement from the company that it has received two more takeover proposals, in addition to the one that the company announced earlier in May.
On the economic front, annual inflation rose to a 19-month high in May following a tax increase on cigarettes, with further pressures expected on prices as the Australian economy strengthens, according to a survey. The 0.5% increase in the TD Securities-Melbourne Institute monthly inflation gauge followed rises of 0.4% in April and 0.5% in March. In the year to May, the inflation gauge rose by 3.7%, its highest annual rate since October 2008.
Meanwhile, new homes sales surged 6% in April due to strong growth in Victoria, a Housing Industry Association report showed. Private sector detached house sales increased 6% in April, while multi-unit sales rose 8% following two soft months in February and March, the report found.
Over the three months to April 2010, new detached house sales were up 19% in Victoria and 1% in South Australia. But they were down 6% in NSW, 4% in Queensland and 2% in Western Australia. Detached new home sales increased by 27.6% in Victoria and 4.3% in SA in April. Meanwhile, detached house sales fell 9.6% in NSW, 4.5% in Queensland and 8.2% in WA.
According to a report from the Australian Bureau of Statistics, Australia's current account deficit stood at a seasonally adjusted A$16.55 billion in the March quarter, down from A$18.47 billion in the previous quarter. The goods and services account balance logged a deficit of A$4.62 billion in the March quarter compared to the A$5.61 billion deficit in the preceding quarter. The goods deficit fell to A$4.04 billion from A$5.00 billion, while the services deficit slid to A$578 million to A$610 million.
The fall in the goods deficit resulted from an increase in exports outstripping the rise in imports. Exports rose 4% sequentially in the March quarter, while imports were up 2%. Contributing to the increase in goods credits were higher exports of non-rural goods and rural goods. The rise in imports was driven by intermediate & other merchandise goods, consumption goods and capital goods.
On the services side, the decrease in the deficit was due to exports growth outpacing that of imports. Services credits increased 3% in the March quarter, while services debits were up 3%.
In seasonally adjusted volume terms, the goods and services balance recorded a deficit of A$7.98 billion in the March quarter, an increase of A$1.50 billion from the December quarter deficit. The statistical bureau expects this to detract 0.5 percentage points from growth in the March quarter gross domestic product.
After a weak start and a subsequent rebound into positive territory, the Japanese market faltered but recovered well past noon as investors picked up stocks from insurance, oil and select banking and chemicals stocks.
However, the market failed to retain gains and ended just marginally above the unchanged line as a section of investors chose to exit counters at higher levels.
The benchmark Nikki 225 index, which rose to around 9,832 around mid afternoon, ended the day at 9,769, netting a small gain of 5.72 points or 0.06%.
Automobile, electric machinery, pharmaceuticals and oil stocks were among the notable gainers, while shipbuilding, chemicals and warehousing stocks traded weak.
Hitachi, Kobe Steel, Konica Minolta, Chugai Pharma, Credit Saison, Nippon Light Metals, Fuji Heavy Industries, Canon, Central Japan Railway, Mitsui Minerals, Isuzu Motors and Sony found some support and posted smart gains.
However, Shinsei Bank, Citizen Holdings, Mitsui, Mitsubishi Rayon, CSK Holdings, Mitsui Chemicals, Sumco, Nissan Chemicals, Fast Retailing, Mitsubishi Estate and Nissan Chemicals declined on selling pressure.
Japan Petroleum Exploration Co. shares edged lower following the decline of crude oil futures in the New York Mercantile Exchange on Friday.
Following an announcement of product discounts, shares of beef bowl restaurant chains Zensho Co. and Matsuya Foods Co. moved higher in morning trades.
JTEKT Corp. shares traded weak after four successive days of gains. The stock drifted lower on dilution worries following an announcement by the firm that it will raise up to 19.3 billion yen in new capital.
On the economic front, the industrial production index rose a seasonally adjusted 1.3% month-over-month to 96.0 in April, the Ministry of Economy, Trade and Industry said in a preliminary report. The average analyst projection was for an increase of 2.5%. A METI survey showed that manufacturers predict their output will rise 0.4% in May and expand 0.3% in June.
In the currency market, the yen was quoting around 91.5 to the U.S. dollar in late trading.
The South Korean market ended on a bright note with investors picking up stocks across various sectors after Moody's Investors Services maintained a stable outlook rating on South Korea. The agency said South Korea's geopolitical defenses and economic fundamentals should prove strong enough to withstand a period of heightened tensions.
The benchmark KOSPI index, which declined to around 1,621 after advancing to 1,634 in early trades, ended the day at 1,641, recording a gain of 18.50 points or 1.14%.
Among other markets in the region, Shanghai, ended sharply lower with its key index Shanghai Composite losing as much as 2.4%.
The Hong Kong market ended near the unchanged line. Indonesia, Malaysia, Singapore and Taiwan ended with notable gains, while India and New Zealand posted modest gains.
On Wall Street, stocks saw sharp losses on Friday, as a downgrade of Spain's credit rating had traders unwilling to remain long in the market ahead of the Memorial Day weekend. The major averages all closed in negative territory, moving back towards Wednesday's three-month closing lows.
The Dow declined by 122.4 points or 1.2% to 10,137, the Nasdaq ended down 20.6 points or 0.9% at 2,257 and the S&P 500 closed with a loss of 13.7 points or 1.2% at 1,089.
Major European markets closed on mixed note on Friday. The German DAX index closed 0.2% up, while the U.K.'s FTSE 100 index and the French CAC 40 index edged down by 0.1% and 0.3% respectively.
Crude oil futures ended lower on Friday, registering their worst monthly decline since December 2008, as a downgrade of Spain's credit rating sparked further euro zone worries and prompted oil traders to seek less risky assets. Light, sweet crude for July delivery settled at US$73.97 a barrel, down 0.8% on the session.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.