Asian stocks moved higher Thursday, as a strong reading on the state of Chinese factories lifted most markets outside of China.
The Nikkei 225 index in Japan recovered 60.36 points, or 0.4%, to 14,486.41
Hong Kong’s Hang Seng Index plummeted 164.13 points, or 0.7%, to 22,835.82, after a sizable drop yesterday.
Japanese companies that produce industrial machinery were pulled lower after Caterpillar shares plunged 6.1% overnight following a cut in its full-year earnings forecast. Hitachi Construction Machinery lost 1.4% and Komatsu dropped 2.1%.
Also in Japan, Hitachi jumped 8.4% after the company more than doubled its net profit outlook for the fiscal half-year ended Sept. 30, due to strength in areas such as electric-power systems.
Chinese banks recorded substantial losses in Hong Kong, with China Construction Bank down 1.9%, and Industrial & Commercial Bank of China down 1.3%
In currency markets, the Australian dollar climbed as high as 96.71 cents after the Chinese data before easing back to 96.26 cents, little changed from 96.21 U.S. cents late Wednesday in New York.
The yen was steady late at ¥97.34 to the dollar.
CHINA
Shanghai’s CSI 300 demurred 17.98 points, or 0.7%, to 2,400.51
The initial October reading for China’s manufacturing activity came out at 50.9, compared to a final reading of 50.2 in September. The score was a seven-month high, above the 50 mark that separates expansion and contraction in factory activity.
The preliminary reading was among the first economic data on the region’s largest economy in the third quarter, coming less than a week after figures showed that Chinese growth picked up from a dip in the second quarter.
Thursday’s upbeat reading, however, did little to offset fears over the Chinese economy, as China’s interbank lending rate moved higher for a second day, reviving fears of a liquidity crunch as happened in June. In addition, data showing a further rise in house prices earlier in the week increased concerns that Beijing could step in to cool down the market.
In other markets;
Korea’s Kospi Index reacquired 10.94 points, or 0.5%, to 2,046.69
Taiwan’s Taiex Index regained 20.10 points, or 0.2%, to 8,413.72
The Singapore Straits Times Index took on 13.15 points, or 0.4%, to 3,217.95
In New Zealand, the Exchange 50 Gross Index dove 41.45 points, or 0.9%, to 4,834.94
In Australia, the S&P/ASX 200 added 16.79 points, or 0.3%, to 5,372.89
