Mainland Chinese stocks posted strong gains to lead Asian markets Thursday, after two separate surveys showed an improvement in business conditions for manufacturers, while technology shares were checked by a plunge in Panasonic Corp.
Japan’s Nikkei 225 Index improved 18.58 points, or 0.2%, to 8,946.87
In Hong Kong, the Hang Seng index galloped ahead 180.05 points, or 0.8%, to 21,821.87
Notable advancers in Hong Kong included apparel firm Esprit Holdings Ltd. which soared 5.8%, while casino firm Sands China Ltd. added 2.9%.
Japanese technology companies were under earnings-related pressure on Thursday. The sector was provided with a weak lead late Wednesday, after Panasonic Corp. unveiled a near $9-billion U.S. quarterly loss after taking restructuring charges. Panasonic shares slumped 19.5%.
Ahead of their respective earnings reports, Sony Corp. dropped 4.1%, while Sharp Corp. skidded 1.7%.
TDK Corp. fell 4.7%, while Fujifilm Holdings Corp. dropped 4.4% after both firms cut guidance while reporting earnings.
Earnings-related gains elsewhere offered some support to the Japanese market, however, with Mazda Motor Corp. up 10.5%, Softbank Corp. 3.6% higher and Kyocera Corp. up 2.9% after updating investors.
The drop in Seoul, meanwhile, came as South Korean survey data out showed that although manufacturing improved to 47.4 from 45.7, it remained below the 50-point level, signaling deterioration. Australian manufacturing also contracted for the eighth straight month in October with a reading of 45.3.
Technology giant Samsung Electronics Co. lost 1%, while auto maker Hyundai Motor Co. fell 3.8%.
Posco shares were down 2.2% in Seoul. The steel giant, along with Noble Group Ltd., walked away from a takeover deal for Australian steel concern Arrium Ltd., which dropped 12.7% in Sydney.
Metals and mining firms were lower across the board in Australia, with Rio Tinto Ltd. down 1.2% and Fortescue Metals Group Ltd. 2.2% lower.
Airlines were also weak, with Virgin Australia Holdings Ltd. down 2% and Qantas Airways Ltd. down 3%.
CHINA
China’s Shanghai Composite index soared 1.7% after an official gauge of manufacturing Purchasing Managers’ Index rose to 50.2 in October from 49.8 in September. A competing final survey from HSBC showed its own PMI reading rose to an eight-month high of 49.5.
The Shanghai CSI 300 Composite Index gained 43.06 points, or 1.9%, to 2,297.88
Mainland Chinese companies gaining ground on Thursday included property firms, with Poly Real Estate Group Co. soaring 4.4% and Gemdale Corp. climbing 4%.
The gains came as average housing prices in 100 major Chinese cities rose in October from the previous month, stretching the run of increases to a fifth straight month.
In other markets
In Singapore, the Straits Times Index dropped 11.76 points, or 0.4%, to 3,026.61
Korea’s Kospi index fell 13.62 points, or 0.7%, to 1,898.44
Taiwan’s Taiex Index gained 13.59 points, or 0.2%, to 7,179.64
The NZX 50 Index subtracted 25.99 points, or 0.7%, to 3,931.88
Australia’s ASX Index let go of 59.35 points, or 1.3%, to 4,457.65.
