Chinese Stocks Gain, But Japan Slips
Asia shares traded mixed in a choppy session Monday as losses for blue-chip names weighed in Tokyo, while weak data from China and the U.S. lifted Shanghai stocks on hopes for more stimulus efforts to boost sagging growth.
Japan’s Nikkei Stock Average 100000018 ended fractionally lower, while South Korea’s Kospi SEU slipped 0.1% apiece, and Hong Kong’s Hang Seng Index HSI lost 0.2%.
On the upside, Shanghai Composite Index 000001 gained 0.5%, while Australia’s S&P/ASX 200 index XJO added 0.1%
Chinese stocks began trimming gains after data released Monday showed the country’s trade surplus widened more than forecast in August, due to a surprise fall in imports. Read more on China’s trade surplus.
It followed data released over the weekend showing rising inflation and slowing industrial activity in China. Read more on China data.
“August activity data in China confirm our view of a weakening economy in the third quarter, with monetary easing still on the table, especially if growth slides further,” Barclays Capital strategist Jian Chang said.
Chinese authorities unveiled a slate of new infrastructure projects last week designed to support the slowing economy. Read more on Chinese stimulus plans.
“Approval of more infrastructure projects should offset weakening confidence, and further fiscal-policy support could be implemented in the coming months,” Chang said.
Future stimulus efforts a focus in the U.S., as stocks on Wall Street closed higher Friday as a disappointing jobs report fuelled speculation that the Federal Reserve would launch fresh monetary easing measures when it meets later this week. Read more on Friday’s U.S. session.
Major movers
Asia stocks diverged amid the batch of soft global data.
Losses for blue-chip exporters dragged in Tokyo, where data showing a downward revision to April-June economic growth and a trade deficit for July also weighed on sentiment. Read more on Japanese GDP.
Sharp Corp. 6753 , SHCAY lost 1.9%, Nikon Corp. 7731 NINOY dropped 3%, and Canon Inc. 7751 CAJ fell 1.8%.
Among major technology names losing ground, Advantest Corp. 6857 ATE sank 4% and Renesas Electronics Corp. 6723 RNECY gave up 3.3%.
On the upside, Nomura Holdings Inc. 8604 NMR NRSCF climbed 2.5% after its chief executive told the Nikkei business daily that the brokerage plans to trim its European operations and focus more on its Asian business. Read more on Nomura CEO’s reported comments.
South Korean stocks struggled for a direction amid a mixed performance for major exporters. Samsung Electronics Co. 005930 SSNLFSSNLFrose 0.6%, while Kia Motors Corp. dropped 0.8% and LG Display Co. LPL shed 0.4%.
Resource rally
Sharp gains on commodity markets Friday supported resource shares across Asia.
Jiangxi Copper Co. 358 JIXAY rose 1.6% and China Coal Energy Co. 1898 CCOZY put on 1.3% in Hong Kong.
Steel makers also advanced, with Angang Steel Co. 347 ANGGY rising 4.4% in Hong Kong, and Posco 005490 PKX up 0.6% in Seoul.
In Sydney, iron-ore producer Fortescue Metals Group Ltd. FMG FSUGY rallied 7.3%, diversified miner Rio Tinto Ltd. RIO RIORIORIO jumped 4.1%, and copper producer PanAust Ltd. PNA surged 9.4%.
But falls for consumer names pressured the broader Australian index, as supermarket operator Woolworths Ltd. WOW WLWHY sank 1.2% and Coca Cola Amatil Ltd. CCL CCLAY lost 1.3%.
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