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
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter