Asian stocks mixed, US growth weighed by profit-taking

A man watches an electronic stock indicator in Tokyo on July 22, 2014. Asian markets were mixed Thursday, July 31, after US data showing the world’s top economy grew much more than expected in the second quarter was offset by late profit-taking. AP PHOTO/SHIZUO KAMBAYASHI

HONG KONG–Asian markets were mixed Thursday after US data showing the world’s top economy grew much more than expected in the second quarter was offset by late profit-taking.

The dollar moved narrowly in Asian trade after briefly hitting a near four-month high and then retreating against the yen in New York as the US growth figures were tempered by a guarded Federal Reserve report.

Tokyo’s Nikkei gave up early gains to end 0.16 percent lower after a recent rally helped it to a six-month high. The index lost 25.46 points to 15,620.77. Sydney added 0.18 percent, or 10.01 points, to close at 5,632.9 and Seoul lost 0.31 percent, or 6.49 points, to 2,076.12.

Shanghai jumped 0.93 percent, or 20.32 points, to 2,201.56 and Hong Kong gained 0.10 percent, or 24.64 points to 24,756.85–extending a winning streak to eight straight sessions.

Jakarta was closed for a public holiday.

The Commerce Department said Wednesday the economy grew 4 percent in April-June, much more than the 3 percent forecast. It was also a sharp reversal on the 2.1 percent contraction in the previous three months that was caused by a severe winter.

The news sent the dollar surging in New York to 103.09 yen–its highest level since early April and well up from the 102.11 yen earlier in Tokyo.

However, it retreated to 102.81 yen by the end of trade after the Fed said that, while the economy was strengthening, it was still disappointed in the jobs market and would keep interest rates low for as long as needed.

Traders had been hoping the pick-up in economic activity would push bank chief Janet Yellen to increase rates as soon as this year, rather than late 2015, as previously indicated.

In afternoon Tokyo trade the dollar was changing hands at 102.90 yen.

The euro bought $1.3393 and 137.82 yen on Thursday against $1.3395 and 137.73 yen.

US jobs data in focus

Despite the healthy data, Wall Street ended mixed. The Dow slipped 0.19 percent but the Nasdaq added 0.45 percent, while the S&P 500 was marginally higher.

Traders were largely unimpressed by a report from payrolls company ADP that showed the private sector created 218,000 jobs in July. While it is above the 200,000 level, it is much lower than the 281,000 seen in June.

Eyes are now on the release Friday of non-farm payrolls, which will give a better handle on the state of the economy.

On oil markets, US benchmark West Texas Intermediate for September delivery slipped $1.05 to $99.22 while Brent crude for September was down 64 cents at $105.87 in afternoon trade.

Gold fetched $1,294.50 an ounce by 1130 GMT compared with $1,299.40 late Wednesday.

In other markets:

— Bangkok fell 1.08 percent, or 16.40 points, to 1,502.39.

Coal producer Banpu lost 3.88 percent, or 1.25 baht, to 31 while Bangkok Bank lost 0.51 percent, or 1 baht, to 195.

— Kuala Lumpur fell 0.37 percent, or 6.98 points, to 1,871.36.

Utility Tenaga Nasional shed 0.3 percent to 12.42 ringgit, while palm oil giant Sime Darby fell 1.5 percent to 9.50. SapuraKencana Petroleum gained 0.5 percent to 4.31 ringgit.

— Singapore rose 0.61 percent, or 20.41 points, to 3,374.06.

DBS Bank gained 0.77 percent to Sg$18.22 while Singapore Airlines was down 2.55 percent to Sg$10.33.

— Taipei fell 1.39 percent, or 131.17 points, to 9,315.85.

Taiwan Semiconductor Manufacturing Co. shed 2.81 percent to Tw$121.0 while tech firm HTC was 1.85 percent lower at Tw$132.5.

— Wellington added 0.18 percent, or 9.44 points, to 5,167.99.

Telecom Corp. was down 2.63 percent at NZ$2.77 while Contact Energy rose 0.18 percent to NZ$5.52

— Manila ended marginally lower, dipping 2.77 points to 6,864.82.

Philippine Long Distance Telephone dropped 0.65 percent to 3,050 pesos and Universal Robina retreated 0.31 percent to 162.50 pesos, while SM Prime Holdings was off 1.67 percent at 15.32 pesos.

— Mumbai closed down 0.74 percent, or 192.45 points, at 25,894.97 points.

IRB Infra was up 18.60 rupees at 257.45 rupees and Cadila Health was down 46.90 rupees at 1118.55 rupees.