Asian shares extend losses, China data disappoints

Currency traders gesture in front of screens showing the Korea Composite Stock Price Index, left, and foreign exchange rate at the Korea Exchange Bank headquarters in Seoul, South Korea, Monday, Feb. 3, 2014. Asian stocks fell Monday after Wall Street lost ground amid lingering jitters about weakness in the financial markets of some developing countries. AP PHOTO/AHN YOUNG-JOON

HONG KONG—Asian markets sank further in holiday-thinned trade on Monday, following another global sell-off caused by anxieties over emerging markets and further disappointing manufacturing data out of China.

The euro edged up against the yen after falling in New York in response to weak eurozone inflation figures that added to fears of deflation in the currency bloc.

Tokyo fell 1.98 percent, or 295.40 points, to 14,619.13 and Seoul slipped 1.09 percent, or 21.19 points, to 1,919.96 while Sydney closed flat, edging down 2.1 points to 5,187.9.

However, Bangkok was up 1.10 percent despite chaotic weekend elections that saw thousands of polling stations closed by opposition protesters following weeks of anti-government demonstrations.

Shanghai, Hong Kong, Taipei and Kuala Lumpur were closed for the lunar new year holiday.

Global equities tanked last week after the US Federal Reserve said it would further cut its stimulus program, sparking fears of a flight of capital from developing nations while also sending their currencies falling against the dollar.

Even figures showing the US economy grew much quicker than expected could not ease the falls.

On Friday the Dow sank 0.94 percent, the S&P 500 fell 0.65 percent and the Nasdaq lost 0.47 percent.

Earlier in Europe on Friday the FTSE 100 in London ended 0.43 percent lower, Frankfurt’s DAX 30 dropped 0.71 percent and the CAC 40 in Paris slid 0.34 percent.

“There’s still some nervousness about emerging markets,” investment adviser Christopher Macdonald told Dow Jones Newswires. “People are wondering if the jitters we saw last month are a sign of some bigger dislocation in the market.”

Adding to the downbeat outlook was official data from China pointing to a slowdown in manufacturing activity in the world’s No. 2 economy and key driver of global growth.

The purchasing managers’ index (PMI) fell to 50.5 in January from 51 in December and 51.4 in November, the National Bureau of Statistics and the China Federation of Logistics and Purchasing said. Any figure above 50 indicates expansion while anything below signals contraction.

The news came days after banking giant HSBC’s China PMI came in at a six-month low of 49.5.

In forex trade the euro fetched $1.3490 and 137.91 yen, against $1.3487 and 137.61 yen.

However, the single currency is well down from the $1.3541 and 138.98 yen earlier Friday in Tokyo.

The unit suffered on Friday after official data showed eurozone inflation fell to 0.7 percent in January, fueling fears of deflation.

Also Friday retailers in Germany, Europe’s biggest economy, reported a shock drop in business last month, according to volatile data produced by the federal statistics office Destatis.

The dollar was at 102.14 yen compared with 102.03 yen in New York Friday.

On oil markets New York’s main contract, West Texas Intermediate for March delivery, eased 14 cents to $97.35 in afternoon trade. Brent North Sea crude for March was down up four cents at $106.44.

Gold fetched $1,246.50 an ounce at 1045 GMT, compared with $1,257.30 late Friday.

In other markets:

— Mumbai fell 1.48 percent, or 304.59 points, to close at 20,209.26 points.

JSW Steel shed 7.11 percent, or 65.25 rupees, to 852.15 rupees a share while private carrier Jet Airways dropped 6.36 percent, or 15.05 rupees, to 221.40 rupees a share.

— Bangkok added 1.45 percent, or 18.53 points, to 1,292.81.

Oil company Bangchak Petroleum gained 3.74 percent to 27.75 baht, while Airports of Thailand rose 2.92 percent to 176.50 baht.

— Singapore eased 1.20 percent, or 36.27 points, to 2,990.95.

Singapore Telecom was down 1.13 percent at Sg$3.49 while United Overseas Bank declined 1.10 percent to Sg$19.78.

— Jakarta ended down 0.74 percent, or 32.50 points, at 4,386.26.

Hero Supermarket gained 1.85 percent to 2,750 rupiah, while state miner Aneka Tambang fell 0.97 percent to 1,020 rupiah.

— Wellington eased 0.51 percent, or 25.08 points, to 4,849.50.

Telecom fell 0.21 percent to NZ$2.345 and Fletcher Building was down 1.32 percent at NZ$8.96.

— Manila closed 0.43 percent lower, giving up 25.89 points to 6,015.30.

Metropolitan Bank and Trust Co. fell 0.26 percent to 75.80 pesos, and Philippine Long Distance Telephone shed 1.04 percent at 2,670 pesos.—Danny McCord

Originally posted: 3:10 pm | Monday, February 3rd, 2014