Asia markets mixed, China slips as stock trading scheme falters

A man cycles past an electronic stock board at a securities firm in Tokyo, Monday, Oct. 27, 2014. Asian markets were mixed to higher Monday after the majority of eurozone banks were given a clean bill of health by the European Central Bank. AP PHOTO/KOJI SASAHARA

HONG KONG–Asian markets were mixed to higher Monday after the majority of eurozone banks were given a clean bill of health by the European Central Bank.

But China was hit by the postponement of a planned stock-trading connection between Hong Kong and Shanghai.

Tokyo ended up 0.63 percent, or 97.08 points, at 15,388.72, Seoul climbed 0.33 percent, or 6.28 points, to close at 1,931.97, and Sydney was up 46.8 points, or 0.86 percent, to end at 5,459.0.

Shanghai dropped 0.51 percent, or 11.84 points, to close at 2,290.44, while Hong Kong was down 0.68 percent, or 158.97 points, to 23,143.23.

The Chinese markets were affected by the delay of the Shanghai-Hong Kong Stock Connect program, which would enable international investors to trade selected stocks in Shanghai’s tightly-restricted exchange, and allow mainland investors to buy stocks in Hong Kong.

The scheme was widely expected to be launched this week.

But Charles Li, the head of Hong Kong’s stock exchange, said on Monday the tie-up had been postponed, and warned that pro-democracy protests that have gripped the city for the past month could have an impact on the scheme’s progress.

Investors have also reportedly expressed concern about a lack of clarity on taxation and other costs relating to use of the platform.

Other markets were boosted by a stable euro after about 80 percent of eurozone banks passed the ECB health test, fueling hopes that a major cause of economic uncertainty could soon be eliminated.

The common currency rose to $1.2704 and 137.14 yen in Tokyo afternoon trade from $1.2666 and 136.97 yen in New York Friday afternoon.

‘Low risk of fresh crisis’

In the most in-depth and stringent audit of eurozone banks ever undertaken–aimed at preventing a repeat of the crisis that nearly led to the euro’s collapse–the ECB found that 25 out of a total 130 banks had a combined capital shortfall of 25 billion euros ($31 billion) at the end of 2013.

It was “positive” that the capital shortage was within expectations and all major banks cleared the stress tests, said Junichi Makino, chief economist at SMBC Nikko Securities.

“Risks that the European crisis will occur again are extremely low,” he said in a note, adding the ECB has been supplying ample funds.

The dollar was at 107.94 yen from 108.14 yen in US trade Friday afternoon.

US stocks Friday capped a strong week on a high note as good earnings from Microsoft and others overshadowed a poor report from Amazon.

The Dow Jones Industrial Average gained 0.76 percent while the broad-based S&P 500 advanced 0.71 percent.

World oil prices were mixed Monday. The US benchmark West Texas Intermediate for delivery in December was up one cent to $81.02 a barrel in afternoon Asian trade, reversing earlier losses, while Brent crude for December eased 20 cents to $85.93.

Gold was at $1,230.40 an ounce against $1,233.37 late Friday.

In other markets:

— Taipei dropped 18.23 points, or 0.21 percent, to 8,627.78.

Taiwan Semiconductor Manufacturing Co. added 1.99 percent to Tw$128.0, while food giant Uni-President Enterprise was 7.0 percent limit-down to Tw$47.35.

— Wellington was closed for a public holiday.

— Manila fell 0.01 percent to 7,103.54.

Top-traded Philippine Long Distance Telephone Co. fell 0.43 percent to 3,212 pesos, while Ayala Land Inc. lost 0.15 percent to 32.75 pesos.

— Singapore closed up 0.11 percent, or 3.56 points, at 3,226.11.

Singapore Telecommunications rose 0.54 percent to Sg$3.72 while real estate developer Capitaland was up 2.95 percent at Sg$3.14.

— Jakarta ended down 0.96 percent, or 48.78 points, at 5,024.29.

Bank Permata rose 1.02 percent to 1,485 rupiah, while state miner Aneka Tambang fell 1.56 percent to 945 rupiah.

— Kuala Lumpur gained 4.29 points, or 0.24 percent, to end at 1,823.15.

Telekom Malaysia rose 0.87 percent to 6.94 ringgit and Tenaga Nasional added 0.46 percent to 13.06 while Sime Darby lost 0.84 percent to 9.40 ringgit.

— Bangkok closed up 0.52 percent, or 7.98 points, at 1,547.89.

Bangchak Petroleum added 3.01 percent to 34.25 baht, while Charoen Pokphand Foods fell 2.40 percent to 30.50 baht.

— Mumbai fell 0.37 percent, or 98.15 points, to 26,752.90.

Bharat Heavy Electricals rose 4.98 percent to 252.00 rupees, while Hindustan Unilever fell 4.75 percent to 721.90 rupees.–With a report from Dow Jones Newswires