Asian stock markets took on a generally upbeat mood Tuesday after data showed Chinese manufacturing activity recovered a bit in July.
In Japan, the Nikkei 225 Index dropped 20.23 points, or 0.2%, to 8,488.09.
The Hang Seng Index in Hong Kong fell 150.23 points, or 0.8%, to 18,903.20, after a delayed start as Typhoon Vicente lashed the city with fierce winds and torrential rains.
Cnooc Ltd. dragged Hong Kong lower amid concerns the Chinese oil giant may have overpaid in its bid to acquire North American energy assets.
Elsewhere in Hong Kong, Agile Property Holdings Ltd. fell 0.6%, while China Overseas Land & Investment Ltd. slipped 1.2%.
Amid the European jitters, blue-chip exporters lost ground in Tokyo, suffering additional headwinds as the yen remained at relatively strong levels.
Canon Inc. lost 1.5%, Hitachi Ltd fell 2.6%., and Casio Computer Co. sank 1.2%.
Shares of Sharp Corp. lost 1.7% to end a multi-decade low after a Nikkei report pointed to a widening net loss for the Japanese tech major.
Toshiba Corp. dived 5.4%, amid earnings concerns following a separate Nikkei report that the company plans to cut NAND flash memory chip output by 30%.
Weak sessions on commodity markets overnight also pressured Japanese trading houses, with Mitsui & Co. down 0.5% and Marubeni Corp. off by 0.4%.
Among resource names suffering in Sydney trading, Fortescue Metals Group Ltd. dropped 0.3% and Oz Minerals Ltd. added 0.4%.
Losses for the key shipbuilding sector dragged in South Korea, with Daewoo Shipbuilding & Marine Engineering Co. down 0.8% and Hyundai Mipo Dockyard Co. off by 1.7%.
Meantime, shares of Billabong International Ltd. surged 20% after the struggling Australian surf and ski-wear retailer received a fresh $713-million U.S. bid from private-equity firm TPG International LLC.
CHINA
Markets around the region were heartened by the preliminary findings of HSBC monthly survey of China manufacturers, which showed the monthly Purchasing Managers’ Index rose to 49.5 in July from June’s final reading of 48.2. The July print marked the strongest reading in five months, though overall conditions remained in contraction for a ninth straight month.
A reading below 50 indicates a contraction, while one above reflects an expansion.
Shanghai’s CSI 300 index restored 10.56 points, or 0.5%, to 2,375.99
HSBC’s report showed that a sub-index of manufacturing output rose to 51.2 in July, a nine-month high, from 49.3 in June.
HSBC’s own economist said the PMI showed the Chinese economy in a pickup after the recent interest rate cuts, though demand or employment conditions remain weak.
The Cnooc deal, China’s biggest overseas acquisition to date, was at a 61% premium to Nexen’s last traded share price. The drop was in line with a 4.3% drop for Cnooc’s American Depository Receipts overnight.
Chinese property names notched gains, as Poly Real Estate Group Co. added 2.1%i, and Gemdale Corp. climbed 2.7%.
In other markets
Korea’s Kospi Index regained 4.49 points, or 0.3%, to 1,793.93
Singapore's Straits Times Index tacked on 15.95 points, or 0.5%, to 2,998.44
Taiwan’s Taiex Index docked 20.38 points, or 0.3%, to 7,008.35
New Zealand’s NZX index shed 4.66 points, or 0.1%, to 3,460.70
Australia’s ASX Index edged up 4.29 points, or 0.1%, to 4,133.23
