Asia stocks down as China man­u­fac­tur­ing slows

The China Post - - BUSINESS INDEX & -

Asian mar­kets fell Mon­day as China shares were dragged down by poor man­u­fac­tur­ing fig­ures and in­vestors fol­lowed a drop on Wall Street.

A pri­vate sur­vey of Chi­nese man­u­fac­tur­ing ac­tiv­ity showed a de­cline to a two-year low in July, sug­gest­ing the world’s sec­ond largest econ­omy faces chal­lenges in the third quar­ter.

Shang­hai slipped 1.11 per­cent, or 40.82 points, to end at 3,622.91, while Hong Kong shed 0.91 per­cent or 224.86 points to close at 24,411.42.

Ja­pan’s bench­mark Nikkei 225 in­dex slipped 0.18 per­cent, or 37.13 points, to fin­ish at 20,548.11, while Seoul fell 21.67 points or 1.07 per­cent to close at 2,008.49.

Syd­ney eased 0.35 per­cent, or 19.9 points, to 5,679.3 ahead of the cen­tral bank’s monthly mon­e­tary pol­icy meet­ing Tues­day.

In­vestor sen­ti­ment in China re­flected the fi­nal read­ing of Caixin’s Pur­chas­ing Man­agers’ In­dex, which came in at 47.8 for July.

The fig­ure was be­low the 49.4 reg­is­tered in June and was the weak­est read­ing since 47.7 in July 2013. A fig­ure above 50 sig­nals growth and any­thing be­low in­di­cates con­trac­tion.

An of­fi­cial pur­chas­ing man­agers’ in­dex re­leased at the week­end had al­ready shown a de­crease for the month, de­cel­er­at­ing to 50.0 from 50.2 in June.

An­a­lysts pre­dicted China’s gov­ern­ment would fur­ther ease credit in the sec­ond half of 2015 to try to shore up growth.

HSBC mean­while an­nounced Mon­day in Hong Kong that net profit fell 3.8 per­cent in the three months to June, as the com­pany agreed to sell its Brazil­ian busi­ness for US$5.2 bil­lion to Brazil’s Banco Brade­sco.

But the com­pany em­pha­sized a rise in pre­tax prof­its, which went up 10 per­cent over six months, push­ing shares up 1.35 per­cent to end at HK$71.05 (US$9.17) com­pared with Fri­day trade.

In­vestors in Ja­pan were mean­while weigh­ing earn­ings while energy-re­lated shares were pushed lower as oil ex­tended its big­gest monthly drop in seven years.

Shares in au­tomaker Honda bucked the trend with an 8.77-per­cent jump to 4,328 yen af­ter it re­ported surg­ing prof­its.

Asian mar­kets had a neg­a­tive lead from Wall Street where stocks closed lower Fri­day fol­low­ing poor earn­ings from ExxonMo­bil and Chevron.

In early Euro­pean trad­ing, The UK’s FTSE 100 was lit­tle changed at 6,694.02. Ger­many’s DAX rose 0.5 per­cent to 11,364.50 and France’s CAC- 40 gained 0.3 per­cent to 5,099.79. Stocks in Athens plunged more than 22 per­cent as the mar­ket re­opened from a shut­down brought on by the near col­lapse of the coun­try’s fi­nan­cial sys­tem dur­ing its high-wire bailout ne­go­ti­a­tions. Fu­tures au­gured losses on Wall Street. Dow fu­tures and S&P 500 fu­tures both fell 0.1 per­cent.

Gold fetched US$1,092.73 an ounce com­pared with US$1,098.40 on Fri­day. In other mar­kets: — Mum­bai rose 0.26 per­cent, or 72.50 points, to end at 28,187.06 points.

State Bank of In­dia climbed 3.94 per­cent to 281.05 ru­pees, while miner Vedanta Lim­ited fell 2.50 per­cent to 126.90 ru­pees.

— Sin­ga­pore closed down 0.30 per­cent, or 9.71 points, to 3,192.79.

Sin­ga­pore Tele­com fell 0.49 per­cent to SG$4.07 while DBS Bank gained 0.20 per­cent to SG$20.22.

— Kuala Lumpur’s main in­dex rose 1.22 per­cent, or 21.05 points, to close the day on 1,721.50.

Public Bank added 0.32 per­cent to 19.06 ring­git, RHB Cap­i­tal gained 0.54 per­cent 7.47 while Malayan Bank­ing lost 0.22 per­cent to 9.18 ring­git.

— Jakarta ended down 0.05 per­cent, or 2.34 points, at 4,800.

Food man­u­fac­turer Tiga Pi­lar Se­jahtera Food gained 1.30 per­cent to 1,950 ru­piah, while palm oil pro­ducer As­tra Agro Les­tari fell 1.37 per­cent to 19,800 ru­piah.

— Bangkok rose 0.13 per­cent, or 1.92 points, to 1,442.04

Kasikorn Bank gained 1.97 per­cent to 181.50 baht, while tele­coms com­pany Ad­vanced Info Ser­vice dropped 1.20 per­cent to 247.00 baht.

— Welling­ton ended up 0.62 per­cent, or 36.89 points, at 5,957.85.

Air New Zealand rose 1.89 per­cent to NZ$2.69 and Con­tact Energy rose 1.41 per­cent at NZ$5.02.

— Manila ended 0.31 per­cent higher, ris­ing 23.26 points to 7,573.26.

Top-traded GT Cap­i­tal added 0.29 per­cent to 1,404.00 pe­sos while Globe Tele­com gained 2.09 per­cent to 2,634.00 pe­sos.

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