Most of the major Asian markets fell on Monday after a set of Chinese economic data offered mixed signals to investors and led to doubts Beijing would act soon to further loosen its policies.
Japan’s Nikkei 225 Index gained 43.81 points, or 0.5%, to close the week’s first session at 8,577.93
In Hong Kong, the Hang Seng Index eked up 11.82 points, or 0.1%, to 21,148.25
Japanese shares ended higher, bouncing off a string of recent losses, as shares of beaten-down exporter found buyers, although Softbank Corp. tumbled further as investors awaited details on the company’s acquisition of U.S. mobile carrier Sprint Nextel Corp.
Softbank Corp. ranked among the major stock movers for a second straight running. It ended 5.3% lower, on top of Friday’s 17% plunge.
The drop came after some media reports that the firm will likely pay $20 billion U.S. for a 70% stake in U.S. wireless major Sprint Nextel Corp, under a deal reached between the two companies. The deal was likely to be announced later Monday, according to reports.
Offsetting those losses, automobile shares ended higher after recent declines. Honda Motor Co. jumped 3.9%, Toyota Motor Corp. rallied 2.1% and Nissan Motor Co. climbed 1.4%.
Analysts at UBS on Monday rated Toyota and Honda at buy, and Nissan at neutral, saying that the North American market is stronger-than-expected while some Asia markets are also firm.
Renesas Electronics Corp. jumped 14.4% on separate reports that a previously tipped public-private consortium including some of Japan’s top corporations was set to bid for the struggling chip maker.
Machinery firm Komatsu Ltd. climbed 4.3% after the Nikkei reported without citing sources that the firm’s fiscal-year operating profit is expected to fall 17%, which would meet company estimates.
Meanwhile, South Korean autos declined, with Hyundai Motor Co. down 1.3% and Kia Motors Corp. off by 3.1%.
Data out over the weekend showed that auto production in South Korea fell 8.2% in September, with Hyundai and Kia losing production due to work stoppages.
Belle International Holdings Ltd., dropped 4.3% in Hong Kong after reporting same-store sales growth for its women’s footwear business slowed to 2.8% year-on-year in the third quarter.
Miners were the worst performers by sector in Australia, offsetting gains for defensive firms, after weakness for metal futures in New York on Friday spilled into electronic trading in Asia on Monday.
Newcrest Mining Ltd. dropped 2.1% in Sydney, with smaller rivals OceanaGold Corp. and Perseus Mining Ltd. dropped 3.8% and 2.5%, respectively.
CHINA
The decline came as data released Monday showed an in-line rise in consumer prices in September and a sharper-than-expected drop in producer prices.
The Shanghai CSI 300 index faded 9.67 points, or 0.1%, to 2,294.86
Hopes for central bank policy easing and fiscal policy stimulus have been a major force behind gains for mainland Chinese as well as regional stocks in recent weeks.
Monday’s inflation data follows September trade figures released over the weekend, which showed the country’s trade surplus and money-supply exceeded expectations.
Corporate updates took several companies sharply lower in China, with ZTE Corp. falling 15.8% in Hong Kong and by the day’s 10% limit in Shezhen, after the firm forecast a third-quarter net loss, in part due to delays for some of its international projects.
In other markets
The Singapore Straits Times Index edged up 1.30 points to 3,043.05
Korea’s Kospi index slid 7.67 points, or 0.4%, to 1,925.59
Taiwan’s Taiex Index shed 18.14 points, or 0.2%, to 7,418.90
New Zealand’s NZX index took on 19.71 points, or 0.5%, to 3,916.37
Australia’s ASX Index fell 3.17 points, or 0.1%, to 4,483.43
