Asia shares mixed as China woes offset US, Europe data

People walk by an electronic stock board of a securities firm in Tokyo Monday, July 1, 2013. Asian markets were mixed Tuesday as a pick-up in US and European manufacturing activity was offset by weakness in China. AP PHOTO/KOJI SASAHARA

HONG KONG—Asian markets were mixed Tuesday as a pick-up in US and European manufacturing activity was offset by weakness in China.

The dollar edged closer to the 100 yen level on the back of the US figures, in turn helping push Japanese exporters higher.

Tokyo rose 1.78 percent, or 246.24 points, to 14,098.74 and Sydney firmed 2.63 percent, or 123.7 points, to 4,834.0 thanks to a decision by the country’s central bank to hold off unveiling any new interest rate cuts.

Seoul was flat, edging down 0.71 points to 1,855.02.

Hong Kong fell 0.70 percent on Tuesday as dealers returned from a long weekend to more data indicating a slowdown in the Chinese economy. The index eased 144.64 points to 20,658.65

But Shanghai ended 0.57 percent higher, adding 11.31 points to 2,006.56 as bargain hunters continued to pick up underpriced assets after last week’s heavy sell-off.

In the United States the ISM purchasing managers index came in at 50.9 in June, well up from 49.0 in May.

Anything above 50 points to growth, while anything below indicates contraction.

That came after the Markit Eurozone Composite Purchasing Managers Index rose to a 16-month-high 48.8, from 48.3 in May. While European manufacturing is still shrinking, the latest report suggests a pick-up in even the troubled economies of Italy and Spain.

Brent Schutte, a market strategist at BMO Private Bank, said the US reading was “pretty good.”

However, he touched on recent volatility in global markets over the possibility the US Federal Reserve will begin winding down its stimulus program when the economy shows it is strong enough.

“I don’t know if bad news is good news or good news is good news,” Schutte said. Markets “seem to be in this tug-of-war period.”

However, in Asia the story was quite different, with HSBC’s PMI for China showing activity shrinking in the economic giant, fueling concerns about the knock-on effects for the rest of the region.

On Wall Street the Dow closed up 0.44 percent Monday, the S&P 500 added 0.54 percent and the Nasdaq climbed 0.92 percent.

The figures from the US and Europe added to news that the Japanese central bank’s Tankan survey of business confidence jumped into positive territory in the April-June quarter for the first time since September 2011.

On forex markets the dollar climbed in New York after the PMI figures, finishing at 99.66 yen on Monday.

And on Tuesday the unit rose further, sitting at 99.73 yen in afternoon trade.

The euro was mixed after enjoying a rally in New York on the back of the eurozone data. It bought $1.3060 and 130.21 yen in Asia Tuesday, compared with $1.3061 and 130.17 yen in New York.

The Australian dollar slipped to 92.10 US cents, from the 92.24 cents just before the central bank said it would stand pat on interest rates but warned of further possible cuts in the coming months as the economy struggles.

Oil prices rose, with New York’s main contract, West Texas Intermediate light sweet crude for delivery in August, up 28 cents at $98.27 a barrel, while Brent North Sea crude for August gained 25 cents to $103.25.

Gold rose to $1,260.17 per ounce at 1025 GMT, compared with $1,238.80 late Monday.

In other markets:

— Taipei fell 0.25 percent, or 20.14 points, to 8,015.86.

Smartphone maker HTC dived 5.41 percent to Tw$218.5 while Hon Hai Precision closed 1.08 percent lower at Tw$73.3.

— Manila fell 1.20 percent, or 78.44 points, to 6,448.18.

The fall came after a four-day rally that saw the market put on 13 percent. Globe Telecom fell 2.14 percent to 1,556 pesos while Megaworld Corp. lost 3.60 percent to end at 3.21 pesos. But SM Investments rose 0.64 percent to 1,107 pesos.

— Wellington expanded 0.91 percent, or 40.20 points, to 4,458.25.

Fletcher Building gained 3.0 percent to NZ$8.66 and Chorus added 3.7 percent to NZ$2.51 and OceanaGold surged 12.6 percent to NZ$1.70.

— Jakarta ended down 1.02 percent, or 48.75 points, at 4,728.70.

Retailer Hero Supermarket gained 2.07 percent to 3,700 rupiah, while mobile phone provider Indosat slumped 5.34 percent to 4,875 rupiah.

— Bangkok added 0.83 percent, or 12.08 points, to 1,463.98.

Supermarket operator Big C Supercenter rose 5.63 percent to 197 baht, while TMB Bank jumped 8.93 percent to 2.44 baht.

— Singapore was up 1.03 percent, or 32.39 points, to 3,173.32.

Agribusiness company Wilmar International gained 0.64 percent to Sg$3.15 while vehicle distributor Jardine Cycle and Carriage was down 2.89 percent at Sg$42.07.

— Kuala Lumpur slipped 3.25 points, or 0.18 percent, to close at 1,771.89.

Hong Leong Bank fell 2.8 percent to 13.90 ringgit while British American Tobacco ended 2.4 percent lower at 60.00. AMMB Holdings rose 1.9 percent to 7.52 ringgit.

— Mumbai fell 0.58 percent, or 113.57 points, to 19,463.82.

India’s state-run Hindustan Copper slipped 6.62 percent to 72.65 rupees while private steel producer Jindal Steel was down 4.21 percent at 214.0 rupees.

Originally posted: 11:08 am | Tuesday, July 2nd, 2013