Asia markets mixed in cautious trade
HONG KONG—Asian markets were mostly lower on Thursday as profit-taking and sobering comments from Federal Reserve chief Ben Bernanke on the US economy outweighed upbeat Chinese manufacturing data.
The euro gave up the previous day’s gains that were won after a record take-up of cheap loans from the European Central Bank by cash-strapped lenders.
Tokyo ended 0.16 percent, or 15.87 points, lower at 9,707.37 and Sydney lost 1.00 percent, or 42.9 points, to close at 4,255.6.
In the afternoon Shanghai slipped 0.10 percent, or 2.38 points, to 2,426.11 while Hong Kong lost 1.35 percent, or 292.12 points, to end at 21,387.96.
Manila advanced 0.84 percent, adding 40.96 points to end at 4,938.61. The Philippine index broke the 5,000-point barrier earlier in the day to hit a record high of 5,011.09.
Seoul was closed for a public holiday.
Data out of Beijing showed manufacturing activity expanded for the third straight month in February as exports picked up, easing concerns that the world’s No. 2 economy was slowing down too quickly.
The official purchasing managers index rose to 51 in February from 50.5 in January, with most sectors showing signs of improvement, the China Federation of Logistics and Purchasing said in a statement.
A reading above 50 indicates industry is expanding.
Markets had been growing increasingly concerned about manufacturing in China, which began shrinking at the end of last year as key export markets, especially the European Union, struggle.
While the upbeat outlook for China provided some confidence, Bernanke’s cool assessment of the US economy injected caution into the market.
The Fed chairman told a congressional hearing that flat incomes and still-high unemployment would probably limit growth this year to 2.25 percent, dampening recent bullishness following a string of positive data.
“Bernanke’s comments failed to inspire markets,” Melbourne-based Chris Gore, a currency analyst at Go Markets, said in a note, according to Dow Jones Newswires.
“His economic assessment was far from encouraging and his comments provided little inspiration for those betting on another round of quantitative easing,” Gore said, referring to the central bank’s policy of flooding markets with cash to boost liquidity.
His comments also came after the Commerce Department said the US economy grew faster than initially believed in the fourth quarter of 2011, at an annual 3.0 percent.
It said the improvement was due in part to positive contributions from consumer spending and private inventory investments.
The dollar, which has rallied against the yen in the past two weeks, gained further on the news and managed to hold firm in late Tokyo trade, buying 81.11 yen against 81.12 yen in New York late Wednesday.
The euro was also stronger as dealers welcomed the second ECB liquidity exercise for banks, this time worth nearly 530 billion euros and easing pressure on weak eurozone member states’ borrowing costs.
Wednesday’s operation, the second after one in December, immediately lifted the euro to $1.3466 before it fell back sharply to end in New York at $1.3325.
And in early European trade the common currency was at $1.3348, while it also gained to 108.26 yen, compared with 108.11 yen in New York.
On oil markets New York’s main contract, light sweet crude for delivery in April, rose 21 cents to $107.28 and Brent North Sea crude for April was up 65 cents at $123.31.
Gold was at $1,717.20 an ounce at 1100 GMT, compared with $1,788.20 late Wednesday.
In other markets:
— Singapore slipped 0.51 percent, or 15.22 points, to 2,978.84.
Singtel shed 1.26 percent to Sg$3.13 and shipping firm Neptune Orient Lines gained 4.10 percent to Sg$1.40.
— Taipei ended flat, edging 3.10 points lower to 8,118.34.
Taiwan Semiconductor Manufacturing Co. fell 1.23 percent to Tw$80.1 while leading design house MediaTek was 0.83 percent higher to Tw$303.5.
— Wellington ended 0.25 percent, or 8.33 points, higher at 3,330.85.
Air New Zealand gained 0.58 percent to NZ$0.87, Fletcher Building was 1.53 percent up at NZ$6.64 and Contact Energy fell 0.21 percent to NZ$4.82.
— Kuala Lumpur rose 0.24 percent, or 3.80 points, to 1,573.45.
Plantation firm Sime Darby gained 2.5 percent to 9.93 ringgit, while Petronas Chemicals added 0.7 percent to 6.75 ringgit and gaming giant Genting lost 1.3 percent to 10.46 ringgit.
— Jakarta fell 0.58 percent, or 22.92 points, to 3,962.29.
Car maker Astra International was 1.7 percent off at 69,650 rupiah, while state-owned lender Bank Rakyat Indonesia shed 2.9 percent to 6,700 rupiah and cigarette maker Gudang Garam declined 1.1 percent to 56,150 rupiah.
— Bangkok rose 0.35 percent, or 4.08 points, to 1,164.98.
Siam Cement gained 0.56 percent to 359 baht, while PTT added 0.28 percent to 364 baht.
— Mumbai slid 168.71 points or 0.95 percent to 17,583.97.
Engineering giant Bharat Heavy Electricals fell 2.97 percent to 299.07 rupees while top property firm DLF fell 5.17 percent to 214.65. State-run explorer Oil and Natural Gas Corp. (ONGC) fell 1.87 percent to 287.85 rupees.
