Asian stocks edged lower on Monday, as concerns over the Federal Reserve’s stimulus offset signs of improvement in China’s service sector
In Japan, where stock markets stopped trading Monday for a public holiday, the yen was little moved at ¥98.67 to the U.S. dollar.
Hong Kong’s Hang Seng Index slipped 60.17 points, or 0.3%, to 23,189.62
The impact of the Chinese data was more noticeable in Australia’s currency on Monday, which knocked higher early in the session and received a further boost after local retail sales rose much more than expected in September. The Australian dollar was at 95.02 U.S. cents late in Asia, compared with 94.39 U.S. cents late Friday in New York.
Earnings season continued in Australia as Westpac Banking Corp. fell 1.2% after the country’s second-largest bank by market value reported lower-than-expected revenue, offsetting a cash profit that exceeded forecasts.
Also in Sydney, Coca-Cola Amatil dropped 4.7% after warning that its fiscal 2014 operating profit was likely to fall 5% to 7% on the previous year.
CHINA
Much of the region started the day higher on signs of growth in China’s services sector, as the official Non-Manufacturing Purchasing Managers’ Index rose to 56.3 in October, according to data released over the weekend. The measure was much higher than the 50 mark that separates expansion from contraction and was the highest reading in 14 months.
Shanghai’s CSI 300 docked 4.51 points, or 0.2%, to 2,380.45
The significant event for Asia will be the coming meeting of China’s Communist Party, where the new leadership is expected to discuss Beijing’s reform agenda.
In other markets;
Korea’s Kospi Index shed 14.25 points, or 0.7%, to 2,025.17
Taiwan’s Taiex Index doffed 34.04 points, or 0.4%, to 8,354.14
The Singapore Straits Times Index forged ahead 2.74 points, or 0.1%, to 3,203.94
In New Zealand, the NZX 50 dropped 3.16 points, or 0.1%, to 4,910.68
In Australia, the S&P/ASX 200 skidded 20.59 points, or 0.4%, to 5,390.53
