Asian shares slip after weak China, Japan data

A man walks past a stock price chart on a street in Tokyo on Monday, March 10, 2014. Asian stock markets sank Monday, battered by weak Chinese trade and a reduced estimate for Japan’s economic growth. AP PHOTO/EUGENE HOSHIKO

HONG KONG—Asian markets tumbled on Monday following a surprisingly poor batch of economic data out of China, while revised Japanese figures showed 2013 growth was slower than expected.

The losses came after healthy gains on most bourses last week and despite jobs growth in the United States, while investors are keeping an eye on events in Ukraine as leaders try to find a peaceful resolution to the crisis.

Tokyo slipped 1.01 percent, or 153.93 points, to 15,120.14, Sydney fell 0.93 percent, or 50.8 points, to 5,411.5 and Seoul was 1.03 percent lower, giving up 20.26 points, to end at 1,954.42.

Shanghai dived 2.86 percent, or 58.84 points, to 1,999.07 while Hong Kong sank 1.75 percent, or 395.56 points, to 22,264.93.

Beijing said Saturday it had seen an unexpected trade deficit of $22.98 billion in February.

The figure compared with a surplus of $14.8 billion in the same month last year, and a median forecast of an $11.9 billion surplus. Exports fell 18.1 percent and imports jumped 10.1 percent.

“It’s hard to ignore a number that looks like that,” said Sean Callow, senior currency strategist at Westpac Institutional Bank in Sydney.

Those figures were followed the next day by news that inflation eased to 2.0 percent in February, down from 2.5 percent in January, leading to talk of possible deflation, which could delay much-needed investment and consumer spending.

While authorities blame the country’s holiday season for the weak results, they add to growing worries about the Chinese economy, with the latest surveys on its key manufacturing sector showing weakness.

The sell-off on Monday is “symptomatic of the mood of the market to be spooked by any poor China numbers and to only take moderate comfort from strong numbers”, he told Dow Jones Newswires.

Japanese GDP slower

In Japan the government said Monday that gross domestic product growth was 0.2 percent in the quarter to December and 1.5 percent through 2013, slower than first thought.

Preliminary figures last month showed GDP expanded 0.3 percent in October-December period and 1.6 percent over the year.

While the data still marked Japan’s best annual performance in three years, it will put the focus on the central bank as it begins a policy meeting later in the day, with speculation that it will announce a fresh batch of monetary easing measures.

In currency trade the yen rose after seeing a sell-off for most of last week. In the afternoon the dollar fell to 103.15 yen from 103.24 yen in New York Friday.

The euro fetched $1.3886 and 143.23 yen, against $1.3874 and 143.31 yen.

The United States provided a broadly positive lead after official figures showed 175,000 jobs were created in February, rebounding from two disappointing winter-battered months, suggesting economic growth is still on track.

On Wall Street the S&P 500 edged up 0.05 percent to its third record in four days and the Dow gained 0.19 percent but the Nasdaq fell 0.37 percent.

In Kuala Lumpur flag-carrier Malaysia Airlines lost 20 percent at one point after one of its 777 airliners went missing at the weekend with 239 people aboard, en route from Kuala Lumpur to Beijing. However, it clawed back a substantial part of that to sit four percent lower in late trade.

The broader market was down 0.50 percent.

Oil prices fell. New York’s main contract, West Texas Intermediate for April delivery, was down 13 cents at $102.45 and Brent North Sea crude for April fell 82 cents to $108.18.

Gold fetched $1,339.80 an ounce at 1200 GMT compared with $1,348.20 late Friday.

In other markets:

— Singapore closed down 0.31 percent, or 9.63 points, at 3,126.63.

Oversea-Chinese Banking Corporation eased 0.63 percent to Sg$9.44 while Singapore Telecommunications also lost 0.28 percent to Sg$3.61.

— Bangkok edged down 0.44 percent, or 6.03 points, to close at 1,349.05.

Coal producer Banpu fell 1.89 percent, or 26.00 points, to close at 26 baht while telephone operator DTAC rose 1.40 percent, or 1.50 baht, to close at 108.50 baht.

— Jakarta ended down 0.18 percent, or 8.64 points, at 4,677.25.

Palm oil firm Wilmar Cahaya Indonesia fell 6.43 percent to 1,600 rupiah, while conglomerate Astra International gained 3.93 percent to 7,275 rupiah.

— Kuala Lumpur dipped 0.56 percent, or 10.20 points, to 1,822.06.

Malaysia Airlines’ stock lost 4.0 percent to 0.24 ringgit after one of its planes disappeared off Malaysia. Genting Malaysia shed 1.9 percent to 4.21.

— Mumbai rose 0.07 percent, or 15.04 points, to end at 21,934.83 points.

Oberoi Realty rose 10.54 percent to 211.30 rupees per share and Ramco Cements rose 7.13 percent to 199.05 rupees per share.

— Taipei fell 0.56 percent, or 48.72 points, to 8,665.24.

Taiwan Semiconductor Manufacturing Co. shed 1.31 percent to Tw$113.0 while Fubon Financial Holdings was 1.89 percent lower at Tw$41.5.

— Wellington eased 0.15 percent, or 7.82 points, to 5,117.84.

Telecom was down 0.20 percent at NZ$2.455 and Fletcher Building slipped 0.40 percent to NZ$9.86.

— Manila ended flat, edging up 5.40 points to 6,487.23.

Philippine Long Distance Telephone gained 0.07 percent to 2,802.00 pesos and International Container Terminal Services rose 0.70 percent to 100.30 pesos, while Metro Pacific Investments advanced 2.25 percent to 4.54 pesos.