Share

Asian markets slip, Shanghai up on China data

Hong Kong - Asian markets mostly retreated on Wednesday following losses on Wall Street, with Tokyo also hurt by a disappointing reading of Japanese business confidence.

But Hong Kong and Shanghai climbed on figures showing a rebound in Chinese manufacturing activity.

After a strong performance for global equities in the first three months of the year, analysts have warned of a rocky road ahead in the near term, with Greece's debt crisis still unresolved, volatility in oil prices and uncertainty over US interest rates.

Tokyo tumbled 0.90% to finish at 19 034.84, Seoul closed 0.62% lower, giving back 12.58 points to end at 2 028.45 and Sydney fell 0.52% to 5 860.8.

However, Shanghai surged 1.66% to 3 810.29 - its highest close since March 17, 2008. And Hong Kong added 0.73% to 25 082.75.

After an impressive three months that saw big gains in some markets - including a 10% rise in Tokyo and eight percent in Sydney - investors took to the sidelines Wednesday as they keep track of various global events.

"This is going to be a tougher quarter and you can expect higher volatility," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg News.

Close attention is being paid to Greece, where the anti-austerity leadership is trying to hammer out new terms for its multi-billion-dollar bailout.

However, it is struggling to come up with proposals that will satisfy its creditors, chiefly paymaster Germany, and release much-needed cash to help it avoid a default and a likely exit from the eurozone.

In New York Tuesday the Dow sank 1.11%, the S&P 500 fell 0.88% and the Nasdaq dropped 0.94%.

Japan's fragility

Adding to uncertainty on Wednesday was Japan's closely watched Tankan survey of business confidence, which came in below expectations, highlighting the fragility in the world's number three economy.

The survey of more than 10 000 companies - marking the difference between the percentage of firms that are optimistic and those that see conditions as unfavourable - is the most comprehensive indicator of how Japan is faring.

"The Tankan showed that firms, particularly manufacturers, are now acutely aware that overseas demand is softening," said a report by SMBC Nikko Securities.

In forex trade the dollar slipped to ¥119.88 from ¥120.06 in New York, where it had been given a boost by positive US consumer confidence figures.

The euro bought $1.0753 and ¥129.00 compared with $1.0741 and ¥128.95.

Hong Kong and Shanghai bucked the regional trend after China said its official Purchasing Managers' Index came in at 50.1 last month, up from 49.9 in February and the first result since December above the 50-level that separates expansion and contraction.

The figure will come as welcome news after a string of weak data that have reinforced concerns about a slowdown in the Chinese economy and led to two interest rate cuts by the central bank.

"After a string of disappointing data, the improvement... suggests that the recent rate cuts and pick-up in bank lending growth may be helping to support large firms," Julian Evans-Pritchard, China economist at Capital Economics, wrote in reaction to the data.

Oil prices edged lower. US benchmark West Texas Intermediate eased 36 cents to $47.24 while Brent fell 5c to $55.06.

Gold fetched $1 185.92 against $1 183.06 late on Tuesday.

In other markets:

- Taipei fell 0.82% to 9 507.66.

Taiwan Semiconductor Manufacturing was 1.03% lower at Tw$144.0, while Fubon Financial Holding shed 1.25% to end at Tw$55.5.

- Wellington was flat, edging up 1.60 points to 5 835.58.

Contact Energy fell 1.34% to NZ$5.90 while Spark gained 3.02% to NZ$3.07.

- Manila closed 0.51% higher, adding 40.56 points to 7 981.05.

Globe Telecom rose 2.38% to 2 062 pesos and Megaworld increased 1.66% to 5.52 pesos.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.83
+0.3%
Rand - Euro
20.36
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders