Share

Asian shares rise despite weak China data

Hong Kong - Asian markets were mostly higher on Monday despite fresh evidence indicating that China's manufacturing sector is shrinking as Tokyo rebounded from a heavy selloff in the previous session.

The dollar edged up slightly against the yen but investors remain on edge over the Crimea crisis.

Tokyo rose 1.83% by the break, Hong Kong added 0.95%, Seoul was 0.38% higher and Shanghai was up 0.25%. But Sydney eased 0.17%.

HSBC said preliminary readings showed Chinese factory activity had contracted in March, adding to concerns about the world's number two economy.

The British banking giant's flash purchasing managers index (PMI) came in at 48.1, an eight-month low and down from 48.5 in February. A final figure will be released next week.

Anything below 50 indicates contraction while a figure above points to expansion.

"China's growth momentum continued to slow down," HSBC economist Qu Hongbin said in a statement. "Weakness is broadly based with domestic demand softening further. We expect Beijing to launch a series of policy measures to stabilise growth."

The figures are the latest to suggest the Chinese economy, a key driver of regional and global growth, is slowing down following several months of weak data including on trade, investment and inflation.

But despite the downbeat results, regional markets were broadly buoyant, with Japan's Nikkei surging on bargain-hunting following a 1.65% dive on Thursday. The market was closed Friday for a public holiday.

Providing support to Tokyo shares was a weaker yen, which helps exporters. In early trade the dollar bought ¥102.50, compared with ¥102.23 in New York Friday.

The euro fetched $1.3795 against $1.3794 and ¥141.42 from ¥141.87.

Wall Street provided a negative lead, with US investors on edge over events in eastern Europe after Russia absorbed Crimea from Ukraine following a controversial referendum.

The Dow fell 0.17%, the S&P 500 lost 0.29% and the Nasdaq shed 0.98%.

Markets are keeping an eye on Europe as US President Barack Obama - who has led stiff Western sanctions against Moscow - heads to The Hague for a gathering of world leaders that could see Russia excluded from the Group of Eight rich countries.

With Russia massing what Nato called a "very sizeable" force on its border with Ukraine, there are fears that President Vladimir Putin is hungry for more Ukrainian territory.

In oil trade, New York's main contract, West Texas Intermediate for May delivery, eased 12 cents to $99.34 a barrel and Brent crude for May dipped 12 cents to $106.80.

Gold fetched $1 326.80 an ounce at 04:30 compared with $1 341.57 late on Friday.

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
23.84
+0.3%
Rand - Euro
20.38
+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