Asian stocks traded mostly higher Thursday, as investors countered downbeat manufacturing data from China with optimism about potential central-bank stimulus measures to support global economic growth.
Japan’s Nikkei Stock Average 100000018 edged up 0.4% in the afternoon session, while Hong Kong’s Hang Seng Index HSI led the region with 0.9% advance.
South Korea’s Kospi SEU rose 0.1%, while the Australian S&P/ASX 200 index XJO advanced 0.2%.
However, the Shanghai Composite Index 000001 surrendered early gains following the Chinese data to trade down 0.2%.
U.S. stocks ended little changed on Wednesday but were off session lows after minutes from the Federal Reserve showed that the central bank’s policy committee discussed a third round of quantitative easing at its last meeting. Read more on Fed minutes.
“Unless the economy picks up, substantially and soon, the Fed will act,” said Paul Edelstein, director of financial economics at IHS Global Insight.
Comments from People’s Bank of China Gov. Zhou Xiaochuan also hinted at possible easing from Beijing.
A preliminary survey on Chinese manufacturing in August from HSBC out Thursday fell to its lowest level in nine months, to 47.8, from 49.3 in July. Read more on China flash PMI results.
“The market reacted negatively to the poor PMI reading … unwinding initial gains fuelled by People’s Bank of China Gov. Zhou’s dovish comments last night and hopes for QE3 in the U.S.,” said Dariusz Kowalczyk, senior economist at Credit Agricole.
However, “investors will now hope for new policies to accelerate growth. The reading increases the odds of more monetary measures, such as a reserve requirement ratio cut and even a rate cut,” he said.
Commodity futures advanced in Asia amid the easing expectations, with Comex gold for December delivery GCZ2 1.5% higher at $1,665.20 per troy ounce and October oil CLV2 adding 0.8% to trade at $98.00 a barrel, giving impetus to the Asian resource sector.
Jiangxi Copper Co. 358 JIXAY moved 2.5% higher, and Aluminum Corp. of China Ltd. 2600 ACH climbed 0.9% in Hong Kong.
Korea Zinc Co. jumped 4.1% in South Korean trading. In Sydney, Alumina Ltd. AWC AWC advanced 2.8%, while Paladin Energy Ltd. PDN PALAFPALAF rose 1.4%.
Hong Kong property firms also benefited from the stimulus hopes, with China Overseas Land & Investment Ltd.688 CAOVF advancing 2.1%, while Henderson Land & Development Co. 12 HLDCY added 3.7% after it reported a more than 12% drop in first-half net profit, but also tipped a coming improvement in sales and raised its interim dividend.
Mainland China-listed property firms fell, however, with Poly Real Estate Group Co. 600048 down 1.1% and Gemdale Corp. 600383 down 0.6% in Shanghai.
PALAF
PALAFWhile a drop in the U.S. dollar amid Federal Reserve easing expectations helped commodities, it also led to the Japanese yen moving higher. The greenback USDJPY traded at 78.52 yen in Asian hours Thursday, after falling below ¥79 overnight for the first time this week. Read more on currencies.
The move weighed on Japanese exporters, with Pioneer Corp. 6773 PNCOF tumbling 4.1%, Mitsubishi Motors Corp. 7211 MMTOF lower by 2.6% and Panasonic Corp. 6752 PC down 0.2%.
Among the blue-chip gainers in Japan, Sharp Corp. 6753 SHCAF rose 2.8% after an NHK report saying the cash-strapped firm may soon get an additional ¥200 billion ($2.56 billion) in loans.
Earnings also provided a boost for some firms, with Australian airline Qantas Ltd. QAN QUBSF climbing 3.4% despite posting its first annual loss in around two decades.
Adjusted profit came in toward the top of the company’s forecasts, while the carrier also said it’s cancelling some plane orders from Boeing Co. BA. Read more on Qantas results
Shares of China Telecom Corp. 728 CHA extended their Wednesday post-earnings climb by surging 6.5%.
Marketwatch
