Asia’s major stock markets finished on a softer note Monday, as upbeat Chinese manufacturing data weren’t enough to dispel concerns that the mainland’s recent economic recovery could fade out next year.
The Nikkei 225 Index in Japan gained 12.17 points, or 0.1%, to 9,458.18
In Hong Kong, the Hang Seng index plummeted 262.54 points, or 1.2%, to 21,767.85
In Hong Kong, top-weighted Hang Seng Index component HSBC Holdings PLC was down 0.6% in Hong Kong after its plan to buy Royal Bank of Scotland Group PLC’s Indian assets collapsed.
But shares of Cathay Pacific Airways Ltd. lost 1.6% as CNBC reported that the airline’s staff was unhappy with the size of a planned salary increase, with labour action a possibility.
In Tokyo, Japanese industrial firms with exposure to China were among the advancers.
Hitachi Construction Machinery Co. — which saw almost 10% of its fiscal first-half sales derived from China — moved 1.6% higher.
Japan Steel Works Ltd. advanced 1.3%. and Sumitomo Heavy industries Ltd. rallied 3.5%.
Technology firms likewise gained ground in Japan, as the yen extended its recent downward march, sending the dollar and euro near their highest levels against the currency since April.
Renesas Electronics Corp. rose 0.7%, Canon Inc. climbed 2.7%, and Panasonic Corp. advanced 0.7%.
Tech firms gained in South Korea, along with autos. Samsung Electronics Co. rose 1.7%, while Kia Motors Corp. climbed 1.1%, and Hyundai Motor Co. advanced 1.3%.
In Australia, financials saw some buying, with Australia & New Zealand Banking Corp. up 1.4%, and asset-manager AMP Ltd. trading 2.4% higher.
Major department-store operators fell in Sydney, however, with David Jones Ltd. down 2% and Myer Holdings Ltd. lower by 1.8%, after data showed that adjusted Australian retail sales for November were unchanged, missing consensus expectations for a 0.4% advance.
Resource firms were broadly lower across the region after a relatively poor session for metals on New York on Friday, with gold miners particularly weak. Newcrest Mining Ltd. declined 1.5% in Sydney, and Zijin Mining Group Co. falling 1% in Hong Kong.
CHINA
Capital Economics said China’s rebound would likely begin to fade out next year if the government doesn’t roll out new programs to keep channeling money into the economy.
The Shanghai CSI 300 Composite Index shed 30.81 points, or 1.4%, to 2,108.85
Meanwhile, a pair of closely watched business surveys gave Asia investors some reason for optimism, as both data sets showed Chinese manufacturing grew last month.
The government-sponsored version of the November manufacturing Purchasing Managers’ Index rose to 50.6, up 0.4 point from October.
The result was just below economists’ expectations but was above the 50-mark separating growth from contraction.
Meanwhile, the final version of HSBC’s privately compiled version of the China manufacturing PMI index, released Monday, also showed improvement. The figure rose to 50.5 from 49.5 in October, its first move above 50 in more than a year.
Banks were among the weak spots in Shanghai trading Monday, with China Merchants Bank Co. down 1.1% and Bank of Communications Co. off 0.5%.
Chinese property firms saw an early rally, helped by separate statistics showing the average housing price in 100 Chinese cities accelerated their gains in November.
Some property shares held those gains, with Agile Property Holdings Ltd. up 0.4%, and Hong Kong’s Wharf Holdings Ltd. adding 0.4%.
But other names saw the early advance disappear, with China Resources Land Ltd. trading 2.7% lower, swinging from a 2.9% gain early in the day.
In mainland trading, the real-estate rally proved more durable, with China Vanke Co. rising 0.6% in Shenzhen, and Gemdale Corp. up 2.3% and Poly Real Estate Group Co. climbing 2.4% in Shanghai.
Mainland-listed liquor shares fell sharply as the sector became the latest focus of product-safety concerns
Shenzhen-listed Luzhou Lao Jiao Co. tumbled 7.5%.
In other markets
In Singapore, the Straits Times Index lost 4.21 points, or 0.1%, to 3,065.74
Korea’s Kospi index added 7.12 points, or 0.4%, to 1,940.02
Taiwan’s Taiex Index gained 19.74 points, or 0.3%, to 7,599.91
New Zealand’s NZX 50 dropped one point to 4,049.09
Australia’s ASX Index tacked on 25.47 points, or 0.6%, to 4,531.51
