Asia stocks were generally higher, led by Chinese issues, as Beijing-backed funds and buying by large shareholders appeared to support the market’s rebound, according to analysts.
In Japan, the Nikkei 225 index restored 90.28 points, or 0.4%, to 20,538.95,
In Hong Kong, the Hang Seng Index regained 116.23, or 0.5%, to 25,398.85
South Korea’s Kospi edged up fractionally, even after the country reported disappointing second-quarter growth of an annualized 2.2%, compared with a revised 2.5% in the first quarter. An outbreak of Middle East respiratory syndrome kept shoppers at home, which hurt consumer spending, and exports have continued to slump.
In corporate news, shares of Hyundai Motor Co. rose to a five-week high, last up 5.3%, after the company announced its first-ever interim dividend. The company’s profit for the latest quarter dropped, though, on weak sales in China and the U.S.
In the beaten-down commodities markets, gold edged up 1% after trading near five-year lows for most of the week.
CHINA
In China, the CSI 300 recovered 93.65 points, or 2.3%, to 4,250.81
Banking and brokerage-sector blue-chip stocks led gains in Shanghai, as more key stakeholders bought shares than sold them, analysts said. Earlier this month, regulators blocked shareholders and company executives with more than a 5% stake from selling shares for six months.
Data shows major shareholders are buying rather than just holding on to shares. To date in July, key shareholders in just 42 listed A-share companies sold shares, for a total of 850 million yuan ($136.9 million U.S.), while senior management in over 500 firms bought shares over the same period, for more than 6.4 billion yuan, according to data provider Wind Information Co.
The buying comes amid a flow of Beijing-backed funds entering the market, according to analysts.
Earlier Thursday, the official People’s Daily said in a commentary that the government’s recent measures to support the stock market were temporary and should not be seen as a step backward in the nation’s policy overhauls. Some critics have said Beijing’s heavy-handed intervention sets back broader goals of opening the market and discourages foreign investors.
Some of the government’s support is coming from China Securities Financial Corp, a state-backed unit that helps funnel cash to brokerages that offer margin financing. On Thursday, CSF Corp. denied reports it had sold shares of Inner Mongolia Yili Industrial, a leading dairy producer in China, according to the official Xinhua News Agency.
In other markets
Singapore’s Straits Times Index dipped 2.80 points, or 0.1%, to 3,356.37
In Taiwan, the Taiex index plummeted 127.58 points, or 1.4%, to 8,791.12
In Korea, the Kospi index nicked higher by 0.34 points to 2,065.07
The NZX 50 lost 26.45 points, or 0.5%, to 5,901.30
The ASX 200 Index moved lower 24.28 points, or 0.4%, to 5,509.29
