Asian shares mostly lower after US, China data
People walk past an electronic stock board of a securities firm in Tokyo on Tuesday, Feb. 3, 2015. Shanghai stocks tumbled Monday after two gauges of Chinese manufacturing activity showed contraction in January, while some Asian markets were also hit by a sell-off on Wall Street. AP PHOTO/EUGENE HOSHIKO
HONG KONG–Shanghai stocks tumbled Monday after two gauges of Chinese manufacturing activity showed contraction in January, while some Asian markets were also hit by a sell-off on Wall Street.
Oil prices plunged again after enjoying a strong rally on Friday. The euro ticked up despite falling eurozone prices and continuing concerns about Greece’s bailout dispute with its international creditors.
Shanghai tumbled 2.56 percent, or 82.06 points, to 3,128.30 and Hong Kong closed slightly lower, giving up 22.31 points to 24,484.74. Tokyo slipped 0.66 percent, or 116.35 points, to end at 17,558.04.
However, Sydney added 0.66 percent, or 36.98 points, to end at 5,625.30, while Seoul added 0.18 percent, or 3.42 points, to 1,952.68.
US markets provided a negative lead after the Department of Commerce said Friday that the US economy expanded at an annual rate of 2.6 percent in the fourth quarter, well below the 5.0 percent in the previous three months.
Adding to selling pressure was news that prices in the eurozone fell by a record 0.6 percent in January, fanning concerns the currency bloc is facing years of deflation.
The Dow sank 1.45 percent, the S&P 500 lost 1.30 percent and the Nasdaq fell 1.03 percent.
Traders were also reacting Monday to news that China’s official purchasing managers’ index (PMI) of manufacturing activity unexpectedly retreated last month for the first time since late 2012.
Data Sunday showed its PMI at 49.8 last month, against 50.1 in December. Anything below 50 points to contraction and anything above indicates growth.
On Monday HSBC said its January PMI was 49.7, a tad up from 49.6 in December but still showing shrinkage.
The results are the latest to highlight the weakness of China’s economy, which in 2014 grew at its slowest pace in 24 years. However, it will fan talk of further monetary easing measures.
Greece talks
“We think demand in the manufacturing sector remains weak and more aggressive monetary and fiscal easing measures will be needed to prevent another sharp slowdown in growth,” Qu Hongbin, HSBC chief economist for China, said in the release announcing the bank’s figure.
On currency markets the dollar was at 117.62 yen in afternoon trade against 117.59 yen in New York late Friday.
The euro bought $1.1314 and 133.01 yen against $1.1284 and 132.70 yen in New York.
Traders moved into the single currency after taking a hit Friday on the inflation news and reports that Greece had refused to meet its creditors and rejected fresh loans.
The new anti-austerity Finance Minister Yanis Varoufakis said that despite warnings that Greece would shortly run out of money, the far-left Syriza-led government preferred to forgo fresh cash and instead renegotiate its entire bailout.
On Sunday, as Varoufakis began a tour of Europe to win support for a new debt package, Athens was given a boost when US President Barack Obama told European leaders that imposing tough austerity measures on the country could backfire.
“You cannot keep on squeezing countries that are in the midst of depression,” he told CNN’s “Fareed Zakaria GPS.”
“At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits.”
On oil markets US benchmark West Texas Intermediate for March delivery fell $1.14 to $47.10, while Brent crude for March closed down $1.21 at $51.78.
Gold fetched $1,274.22 an ounce, down from $1,264.49 on Friday.
In other markets:
— Mumbai fell 0.21 percent, or 60.68 points, to end at 29,122.27 points.
Telecom major Bharti Airtel fell 3.54 percent to 359.55 rupees, while Axis Bank rose 4.82 percent to 617.05 rupees.
— Bangkok edged up 0.09 percent, or 1.45 points, to 1,582.70.
Oil company PTT Exploration and Production gained 3.21 percent to 112.50 baht, while supermarket operator Big C Supercenter dropped 2.90 percent to 234 baht.
— Jakarta closed down 0.25 percent, or 13.17 points, to 5,276.24.
Lender Bank Central Asia fell 0.19 percent to 13,350 rupiah, while palm oil producer Astra Agro Lestari rose 0.86 percent to 23,450 rupiah.
— Singapore rose 0.95 percent, or 32.15 points, to 3,423.35.
Oil rig maker Keppel Corp. rose 0.23 percent to Sg$8.72 while Singapore Airlines was down 0.32 percent to Sg$12.61.
— Wellington added 0.22 percent, or 12.69 points, to 5,756.69.
Fletcher Building was up 0.84 percent at NZ$8.45 and Air New Zealand rose 0.77 percent to NZ$2.63
— Taipei rose 0.27 percent, or 25.08 points, to 9,386.99.
Taiwan Semiconductor Manufacturing Co. gained 1.06 percent to Tw$142.5 while Hon Hai Precision Industry was 0.23 percent lower at Tw$86.5.
— Manila slipped 0.77 percent, or 59.20 points to 7,630.71.
Universal Robina Corp. fell 0.48 percent to 206 pesos while telecom giant Philippine Long Distance Telephone Co. dropped 0.34 percent to 2,960 pesos.
— Kuala Lumpur was closed for a public holiday.
