Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Asian shares down on China manufacturing data

Asian shares down on China manufacturing data

Asian shares continued their decline on Monday in morning trade after a gauge of Chinese manufacturing fell and as investors awaited a Federal Reserve meeting starting tomorrow for a clue on the timing of stimulus cuts.

The MSCI Asia Pacific Index lost 0.5% to 137 as of 9:48 a.m. in Hong Kong. Japan’s Topix index lost 0.7%. Australia’s S&P/ASX 200 Index fell 0.1%. New Zealand’s NZX 50 Index and South Korea’s Kospi index were little changed.

Hong Kong’s Hang Seng Index slid 0.8%, while the Hang Seng China Enterprises Index declined 0.7%. China’s Shanghai Composite slipped 0.2%. Singapore’s Straits Times Index fell 0.3%, and Taiwan’s Taiex lost 0.5%.

Shares declined as improving US economic data fuelled speculation that stimulus will be reduced sooner than later. The Fed will start reducing $85 billion of monthly bond purchases this week, according to 34% of economists surveyed on 6 December by Bloomberg.

Meanwhile, the HSBC Holdings Plc/Markit Economics preliminary manufacturing purchasing managers’ index for China declined to 50.5 in December. In Japan, the quarterly Tankan index for large manufacturers increased to the highest since 2007, climbing to 16 from 12 in September, according to the Bank of Japan, beating estimates.

In corporate news, Toyota Motor Corp., Asia’s largest carmaker, fell 1.3%, leading losses among consumer-discretionary firms as the yen held gains against the dollar.

Senex Energy Ltd. plunged 7.1% after its A$752 million ($674 million) initial takeover proposal for AWE Ltd. was rejected by the oil and gas explorer. AWE shares surged 5.2%.

Tokyo Electric Power Co. gained 1.2% on a report the government plans to double interest-free loans to the utility.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter