Asian shares mixed af­ter Ja­panese GDP data

The China Post - - BUSINESS INDEX & -

Asian shares were mixed on Mon­day, with Tokyo helped by bet­ter than ex­pected Ja­panese growth fig­ures and Shang­hai boosted by a gov­ern­ment pledge to sup­port China’s volatile stock mar­kets.

Hong Kong lost 0.74 per­cent, or 176.38 points, to end at 23,814.65 on con­cerns China’s de­val­u­a­tion of the yuan would hurt lo­cal com­pa­nies, while Shang­hai rose 0.74 per­cent, or 17.09 points, to 2,327.49.

Syd­ney ended up 0.43 per­cent, or 23.16 points, at 5,379.70 and Seoul dropped 0.75 per­cent, or 14.94 points, to close at 1,968.52.

Tokyo added 0.49 per­cent, or 100.81 points, to end at 20,620.26 af­ter news Ja­pan’s econ­omy shrank a lower-than-ex­pected 0.4 per­cent in the April-June quar­ter and 1.6 per­cent from a year ear­lier.

The weak read­ing still beat mar­ket ex­pec­ta­tions for a quar­terly fall of 0.5 per­cent, or a 1.8 per­cent an­nu­al­ized drop, and spurred hopes the gov­ern­ment will help prop up the stum­bling econ­omy.

Shang­hai, mean­while, ended a see-saw ses­sion higher as in­vestors weighed con­cerns about the health of the econ­omy against a gov­ern­ment pledge to sup­port eq­ui­ties for a “num­ber of years” to con­tain volatil­ity.

The prom­ise, which an­a­lysts said was de­signed to soothe in­vestors’ fraz­zled nerves, came af­ter the cen­tral bank’s shock de­val­u­a­tion of the yuan last week plunged global

fi­nan­cial mar­kets into tur­moil.

Hong Kong Hurts

Hong Kong shares were hit by con­cerns the cheaper yuan will im­pact lo­cal com­pa­nies, par­tic­u­larly those with high U.S. dol­lar-debt and re­tail­ers that could suf­fer if main­land tourist num­bers fall.

Chi­nese com­pa­nies trad­ing in Hong Kong, as mea­sured by the MSCI In­dex, are al­ready far more ex­pen­sive than their main­land coun­ter­parts.

“In the longer run, the Chi­nese com­pa­nies will out­per­form,” Her­ald van der Linde, Hong Kong based head of Asia-Pa­cific eq­uity strat­egy at HSBC, told Bloomberg News.

Wall Street fin­ished higher Fri­day af­ter solid in­dus­trial pro­duc- tion, whole­sale prices and July re­tail sales data all sig­naled that the world’s top econ­omy is strength­en­ing.

Gold was at US$1,116.46 com­pared to US$1,121.23 late Fri­day.

Euro­pean Stocks Re­bound

Euro­pean stock mar­kets rose on Mon­day in a quiet start to a week that is set to be dom­i­nated by more de­vel­op­ments over China and Greece.

Lon­don’s bench­mark FTSE 100 in­dex edged up 0.01 per­cent to stand at 6,551.67 points near­ing mid­day in the cap­i­tal, with gains capped by a weak min­ing sec­tor.

Frank­furt’s DAX 30 won 0.54 per­cent to 11,044.62 points and the CAC-40 in Paris climbed 0.65 per­cent to 4,988.67 com­pared with Fri­day’s close.

Europe’s main stock mar­kets had closed slightly lower on Fri­day at the end of a tur­bu­lent week for eq­ui­ties and other fi­nan­cial mar­kets, trig­gered by con­cerns over the Chi­nese and Greek economies.

“Euro­pean mar­kets have started the week higher, buoyed by Greece fi­nally ap­prov­ing their new bailout deal — how­ever, the UK mar­ket con­tin­ues to un­der­per­form, as weaker com­mod­ity prices weigh on the min­ing and oil-heavy FTSE 100 in­dex,” said Re­becca O’Keeffe, head of in­vest­ment at stock­bro­ker In­ter­ac­tive In­vestor.

Athens’ main stocks in­dex was up 0.72 per­cent at 678.76 points in Mon­day trad­ing. In other mar­kets: — Mum­bai fell 0.67 per­cent, or 189.04 points, to 27,878.27.

Bank of Baroda gained 15.15 per­cent to 212.40 ru­pees, while Agro firm KSCL slipped 16.97 per­cent to ru­pees 499.70.

— Malaysia’s main in­dex fell 1.52 per­cent, or 24.28 points, to close at 1,572.54.

RHB Cap­i­tal lost 2.08 per­cent to 6.58 ring­git, Malayan Bank­ing dropped 1.21 per­cent to 8.19 while Gent­ing Malaysia added 1.55 per­cent to 3.94 ring­git.

— Bangkok fell 0.37 per­cent, or 5.18 points, to 1,408.74.

Power firm Elec­tric­ity Gen­er­at­ing lost 1.61 per­cent to 153.00 baht, while oil com­pany PTT dropped 1.66 per­cent to 297.00 baht.

— Sin­ga­pore closed 1.51 per­cent, or 46.90 points, lower at 3,067.35.

Oversea-Chi­nese Bank­ing Corp fell 1.64 per­cent to SG$9.60 and oil rig maker Kep­pel Corp tum­bled 1.09 per­cent to SG$7.27.

— Welling­ton gained 0.54 per­cent, or 30.97 points, to 5,727.42.

Con­tact Energy rose 1.55 per­cent to NZ$5.24 and Spark New Zealand was up 4.32 per­cent at NZ$2.775.

Jakarta was closed for a public hol­i­day.

— Manila fell 0.97 per­cent, or 71.60 points, to 7,336.84.

Top- traded Uni­ver­sal Robina Corp. lost 1.05 per­cent to 188.00 pe­sos, while BDO Uni­bank ended 3.01 per­cent down to 99.90 pe­sos.

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