Asian shares mixed after downbeat China, Japan data
A man walks past an electronic stock board of a securities firm in Tokyo on Friday, Aug. 8, 2014. Asian shares were mixed Wednesday, Aug. 13, as downbeat data from China and Japan sparked renewed concerns for growth in the region’s two biggest economies. AP PHOTO/EUGENE HOSHIKO
HONG KONG–Asian shares were mixed Wednesday as downbeat data from China and Japan sparked renewed concerns for growth in the region’s two biggest economies.
Tokyo shrugged off early losses to close 0.35 percent, or 52.32 points, higher at 15,213.63, despite data which showed the Japanese economy contracted sharply in the latest quarter as a sales tax increase slammed the breaks on household spending.
Shanghai ended flat at 2,222.88 and Hong Kong closed up 0.81 percent, or 200.93 points, at 24,890.34 as new statistics showed key indicators including industrial production slowed in July.
Seoul gained 1.02 percent, or 20.89 points, to 2,062.36 but Sydney eased 0.28 percent, or 15.62 points, to 5,514.7.
Minutes before the opening bell, Tokyo announced that the world’s No. 3 economy shrank by 1.7 percent in the April-June quarter–which translated into a 6.8 percent drop on an annualized basis.
A string of disappointing Chinese data further weighed on market sentiment.
China’s bank lending plunged to 385.2 billion yuan ($62.5 billion) in July, a dramatic decline from June’s 1.08 trillion yuan as the weakening property sector hit demand for loans.
China also released figures for industrial output, retail sales and fixed-asset investment that were in line with expectations but slightly slower from the previous month’s data.
Key US retail sales due
Investors were also cautiously eyeing geopolitical tensions in Ukraine as a convoy of 262 Russian trucks headed towards the border. Kiev vowed to block the aid mission from its territory over fears it was a ploy to bolster pro-Kremlin rebels.
The United States and European Union have already imposed an array of sanctions on Russia in response to what they see as Moscow’s military support for rebels in Ukraine.
The Dow Jones Industrial Average dipped 0.06 percent to 16,560.54 on Tuesday as new data showed investment sentiment in Germany, the eurozone’s biggest economy, was taking a hit from the crisis over Russia and Ukraine.
The widely watched investor confidence index calculated by the ZEW economic institute fell 18.5 points to 8.6 points in August, its lowest level since December 2012.
Investors were also focused on key US retail sales data due later Wednesday, which will shed light on consumer sentiment in the world’s top economy.
In currency markets, the dollar fetched 102.28 yen in afternoon Asian trade compared with 102.24 yen in New York.
The euro bought $1.3364 and 136.69 yen against $1.3368 and 136.67 yen.
In oil markets, US benchmark West Texas Intermediate for September delivery rose four cents to $97.41 in afternoon Asian trade while Brent crude for September was down 31 cents at $102.71.
Gold traded at $1,307.33 an ounce at 1050 GMT compared to $1,312.30 an ounce late Tuesday.
In other markets:
— Wellington ended flat, edging down 0.02 percent, or 1.10 points, to 5,054.70.
Casino operator SkyCity was up 1.97 percent at NZ$3.62 percent and Trade Me slipped 0.86 percent to NZ$3.44.
— Manila also ended flat, edging up 0.04 percent, or 2.75 percent, to 6,986.24.
The Philippine Long Distance Telephone Co. rose 0.26 percent to 3,124 pesos but Ayala Land Inc. was unchanged at 31.70 pesos.
— Taipei rose 0.74 percent, or 68.19 points, to 9,231.31.
Taiwan Semiconductor Manufacturing Co. added 0.82 percent to Tw$122.5 while Cathay Financial Holding was 1.54 percent higher at Tw$49.3.
— Mumbai was flat, closing down 0.15 percent or 38.18 points to end at 25,918.95.
Unitech slid 17.14 percent to 21.75 rupees, while Engineers India fell 13.89 percent to 238.70 rupees.
— Bangkok added 1.59 percent, or 24.24 points, to 1,544.55.
Coal producer Banpu gained 4.88 percent to 32.25 baht, while Bumrungrad Hospital soared 5.51 percent to 134 baht.
— Kuala Lumpur’s main index added 7.65 points, or 0.41 percent, to close at 1,858.04.
Malaysian Airline System, branded as Malaysia Airlines, gained 1.96 percent to 0.26 ringgit, Public Bank rose 0.11 percent to 19.02 while Malayan Banking was flat at 9.94 ringgit.
— Jakarta ended up 0.70 percent, or 35.87 points, at 5,168.27.
Cigarette maker Gudang Garam gained 1.19 percent to 55,050 rupiah, while paper manufacturer Pabrik Kertas Tjiwi Kimia slipped 0.96 percent to 1,030 rupiah.
— Singapore’s Straits Times Index eased 0.06 percent, or 1.98 points, to 3,301.41.
Oversea-Chinese Banking Corporation rose 0.49 percent to Sg$10.19 while Singapore Telecommunications fell 0.26 percent to Sg$3.91.
