A number of Asian stock markets declined Wednesday after data showed manufacturing activity deteriorated in several countries in the region, with caution also setting in ahead of this week’s monetary policy decisions in the U.S. and Europe.
In Japan, the Nikkei 225 Index lost 53.21 points, or 0.6%, to 8,641.85
The Hang Seng Index in Hong Kong advanced 23.57 points, or 0.1%, to 19,820.38
Machinery firm Komatsu Ltd. dropped 7.1% after lowering its fiscal-year operating profit and sales outlook, and after a senior company executive said it faced "extremely tough competition" in China.
Auto maker Honda Motor Co. fell 5.7% as it maintained its operating profit and sales outlook despite posting a more than fourfold jump in quarterly profit.
Mazda Motor Corp. dropped 3.2% after announcing a first-quarter loss.
Panasonic Corp. stock jumped 8.1% after swinging back to a quarterly profit.
Toshiba Corp. climbed 0.8% despite a quarterly loss, as the company said it still expects to turn in a fiscal-year profit.
Some miners fell in Australia after the Chinese data, with BHP Billiton Ltd. lower by 0.8% and Newcrest Mining Ltd. slipping 0.2%
CHINA
The advance for Chinese stocks came as an official at the China Securities Regulatory Commission was quoted as saying by Xinhua news service that investors may have overestimated the economic slowdown in the country. The official also reportedly encouraged cash-rich listed companies to buy back their own shares.
Shanghai’s CSI 300 index gained 25.73 points, or 1.1%, to 2,358.65
HSBC’s final PMI for July came in at 49.3, up from 48.2 in June, but below the 50-point threshold that separates expansion and contraction. The CFLP data put the July PMI at 50.1, above the 50-point mark, but below the 50.2 level seen in June and also lower than expectations.
The mainland markets were also supported by speculation that Beijing may this week introduce more monetary easing measures, such as a reduction in banks’ reserve requirement ratios.
In Shanghai, shares of railway, construction-related and miners advanced, with China Railway Erju Co. soaring 8.4%, Anhui Conch Cement Co. climbing 3.4% and Inner Mongolia Baotou Steel Rare-Earth Group jumping 4.8%.
In other markets
Korea’s Kospi Index slipped 2.06 points, or 0.1%, to 1,879.93
Singapore's Straits Times Index picked up 14.68 points, or 0.5%, to 3,051.08
Taiwan’s Taiex Index fell back 2.53 points, or 0.03%, to 7,267.96
New Zealand’s NZX index subtracted 14.36 points, or 0.4%, to 3,530.65
Australia’s ASX Index moved backward 6.39 points, or 0.2%, to 4,262.76
