Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

In our first Sector Spotlight of the year we explore UK equities on the back of the extreme market turbulence in 2016.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter