Asian markets were mixed Thursday, with resource shares such as BHP Billiton and Santos advancing in Sydney on an overnight rebound in crude-oil prices, while Shanghai-listed stocks dropped for the third straight session on refining and airline stocks.
The benchmark Nikkei 225 index closed up 9.02 points or 0.1% at 13,376.81 while in Hong Kong, the benchmark Hang Seng Index rose 0.2% to 22,731.10 during the volatile session.
On the economic front, manufacturing activity in Japan recovered modestly in July, but remained in a state of contraction. The Nomura/JMMA Japan Purchasing Managers Index increased by 0.5 points to a seasonally adjusted reading of 47.0 from the June level of 46.5. The June reading was the lowest since February 2002. The survey found that manufacturing activity continued to be negatively impacted by a slowing economy and rising energy costs. The report's output index, which reflects industrial production, fell to 44.2 from 44.4 in June.
Among other data released today, Japanese housing starts declined 16.7% in June from the previous year, after falling 6.5% in May and 8.7% in April, according to the Ministry of Land, Infrastructure and Transport. Economists had forecast a sharp fall of 17.8% for June. Construction orders received by big 50 contractors dropped 11.7% versus May's 25.2% decline. Meanwhile, Labor cash earnings unexpectedly fell by 0.6% on year in June, according to the Ministry of Health, Labor and Welfare. Analysts expected a 0.6% on year increase following a revised 0.8% annual gain in May.
Financial sector was weak on poor earnings reported by some companies. Sumitomo Trust & Banking fell 2.8% after its net profit fell 47% on year and Daiwa Securities Group dropped 2.1% after its first-quarter profit tumbled 78%. Mizuho Financial plunged 2.6%, Sumitomo Mitsui slipped 0.2% and Mitsubishi UFJ declined 0.3%.
Among oil-related stocks, oil and gas miner Inpex Holdings rose 2.5%, Nippon Oil jumped 3.0% and Nippon Mining Holdings surged 4.0% on higher crude oil prices. Trading house Mitsubishi Corp. shed 2.8%, despite reporting a 12% year-over-year increase in net profit for the first quarter ended June. The company also left its full year to March 2009 earnings guidance unchanged.
TDK fell 1.5%. The Nikkei daily reported that the company is planning to buy German electronic parts manufacturer Epcos AG for about 150 billion-200 billion yen.
Nintendo plunged 8.9%, despite reporting a 31.5% rise in first-quarter operating profit. But it left unchanged its full year earnings guidance to March 2009, citing uncertain sales outlook for the Christmas and year-end sales period.
The Chinese market closed sharply lower, falling the most since July 16, on selling across the board. Airlines and oil refiners led the decline on the back of a surge in crude oil prices overnight. The Shanghai Composite Index lost 60.95 points or 2.15% to finish at. The Shanghai index has dropped 2,482.16 points or 46.1% in the first six months, making it one of the worst performing markets in the world.
Sinopec slumped 5.3% and Sinopec Shanghai Petrochemical plunged 4.5%. Air China dropped 5.5% and China Southern Airlines tumbled 5.2%.
Among banks, Industrial & Commercial Bank of China declined 1.0% and Bank of Beijing plunged 3.8%. Bank of Beijing said Wednesday that it won regulatory approval to buy 20% of Langfang City Commercial Bank for 127.5 million yuan.
In the property space, China Vanke plummeted 3.4%, Beijing North Star tumbled 7.3% and Poly Real Estate slumped 7.4%. Beijing North Star said Wednesday that first-half profit fell 56% to 149.7 million yuan based on international accounting standards.
Elsewhere:
Taiwan's Taiex closed down 0.65% at 7,024.
Singapore's STI closed up 0.14% at 2,929.
Malaysia's KLCI closed up 0.3% at 1,163.
Indonesia's Jakarta Composite index closed up 1.1% at 2,304.
India's Sensex closed up 0.48% at 14,355.
South Korea's Kospi gained 1.1% to 1,594.67.
Australia's S&P/ASX 200 rose 0.8% to 4,977.40.
New Zealand's NZX 50 index climbed 1.5% to 3,336.28.
Philippines' Composite index slipped 0.3% to 2,577.10.
Taiwan's Weighted index lost 0.7% to 7,024.06.
with files from other wire services
