Asian markets mixed after US, Europe rally

HONG KONG—Asian shares were mixed in the region’s first full day of trade Wednesday as investors took a strong lead from Wall Street and Europe, thanks to upbeat economic data on both sides of the Atlantic.

However, confidence remained fragile as Europe’s debt woes continued to linger, with the euro under pressure and the dollar also struggling against the safe-haven yen.

Tokyo’s first session of 2012 saw it gain 1.92 percent, or 161.22 points, to 8,560.11 and Sydney shot up 2.11 percent, or 86.6 points, to 4,187.8.

But Seoul gave up 0.49 percent, or 9.19 points, to finish at 1,866.22.

Hong Kong slipped 0.80 percent, or 150.10 points, to 18,727.31 and Shanghai shed 1.37 percent, or 30.03 points, to 2,169.39.

Sentiment had been given a lift by manufacturing data from the United States and Europe.

The US Institute for Supply Management said Tuesday its manufacturing index hit 53.9 percent in December, an increase of 1.2 points from November and the fastest rate in six months, surpassing expectations.

Any figure over 50 indicates growth.

Meanwhile, the Commerce Department reported construction spending increased 1.2 percent in November, above forecasts.

US stocks surged on the news, with the Dow up 1.47 percent, the tech-rich Nasdaq 1.67 percent higher and the S&P 500 rising 1.55 percent.

The US data followed positive consumer spending and manufacturing figures in Germany, as well as the best unemployment figures for 20 years, which confirmed recent upward trends in Europe’s biggest economy.

On New Year’s Day, China announced the official index of manufacturing activity unexpectedly rose to 50.3 in December, rebounding from a 33-month low of 49 in November.

“Investors like the fact that we had better-than-expected December manufacturing data around the world,” said Macquarie Private Wealth division director Martin Lakos.

“I don’t think we (can hang) our hats on one month of data, but it’s nice to see markets reacting positively to good news,” he told Dow Jones Newswires.

Chris Weston from IG Markets institutional dealing in Sydney said: “Traders seem to have entered 2012 recharged, optimistic and seemingly ready to see the world through fresh eyes.”

However, the eurozone debt crisis has not gone away, with weak Spanish employment and public deficit figures weighing.

Jahanzeb Naseer, research analyst at Credit Suisse, said there were still a number of concerns for the new year.

“Signs in China and Europe signal global industrial production growth to be in negative territory in 1Q,” he said.

“Coupled with the European debt crisis and US debt policy, 2012 looks set to be volatile and unpredictable for investors around the world.”

European stock markets fell in early trade Wednesday, with London’s benchmark FTSE 100 index down 0.15 percent, Frankfurt’s DAX 30 dropping 0.41 percent and the CAC 40 in Paris losing 0.55 percent.

On currency markets, the euro weakened after enjoying a strong rise Tuesday, thanks to the economic data.

It bought $1.3026 and 99.87 yen, from $1.3051 and 100.10 yen in New York late Tuesday.

The dollar stayed weak against the Japanese yen, trading at 76.66 yen compared with 76.68 yen in New York.

World crude prices were mixed after soaring late Tuesday over tensions between major oil producer Iran and the United States.

New York’s main contract, West Texas Intermediate for delivery in February, dipped 16 cents to $102.58 per barrel, while Brent North Sea crude for February gained six cents to $111.92.

Gold stood at $1,602.40 an ounce at 1050 GMT compared with $1,590.00 late Tuesday.

In other markets:

— Taipei closed 0.42 percent higher, adding 29.59 points, to 7,082.97.

HTC rose 0.61 percent to Tw$495.5 while TSMC was 0.13 percent up at Tw$75.8.

— Singapore closed up 0.84 percent, or 22.66 points, to 2,711.02.

Container shipping firm Neptune Orient Lines gained 0.85 percent to Sg$1.19 and Olam International Ltd. was up 3.23 percent to Sg$2.24.

— Indian shares slid 0.36 percent, or 56.72 points, at 15,882.64.

Motorcycle giant Bajaj Auto fell 4.7 percent to 1,426.3 rupees, auto and farm equipment maker Mahindra and Mahindra slid 4.25 percent to 638.2 rupees and India’s top property firm DLF ended down 2.25 percent to 187.10 rupees.

— Indonesian shares gained 1.3 percent, or 49.54 points, to 3,907.42.

Telco Indosat jumped 5.4 percent to Rp 5,850, while car maker Astra International gained 2.9 percent to Rp 77,150.

— Kuala Lumpur shares fell 0.62 percent, or 9.32 points, at 1,504.22.

Telecommunications giant Axiata slid 2.2 percent at 4.89 ringgit while state petroleum firm Petronas saw its trading arm drop 2.5 percent at 17.00 ringgit.

— Manila jumped 1.48 percent, or 65.55 points, to 4,487.77.

Philippine Long Distance Telephone rose 2.3 percent to 2,640 pesos, Ayala Land added 0.5 percent to 15.30 pesos and geothermal power producer Energy Development was up 0.6 percent at 6.35 pesos.

— Bangkok rose 1.06 percent, or 10.89 points, to 1,036.21.

PTT gained 1.89 percent to 324 baht, while Banpu added 1.10 percent to 552 baht.

— Wellington ended 0.41 percent, or 13.40 points, higher at 3,288.11.

Air New Zealand gained 1.11 percent to NZ$0.91, Contact Energy slipped 0.95 percent to NZ$5.22 and Telecom fell 2.90 percent to NZ$2.01.