Asian Shares Rise Despite Signs Of Slowing Growth

Asian stocks rose broadly on Wednesday in spite of signs that the region’s factory activity lost momentum in August due to a resurgence in coronavirus cases.

Chinese shares advanced as weak data raised hopes for more policy support. The benchmark Shanghai Composite Index climbed 23.16 points, or 0.7 percent, to 3,567.10, while Hong Kong’s Hang Seng Index ended up 149.30 points, or 0.6 percent, at 26,028.29.

The manufacturing sector in China fell into contraction in August, the latest survey from Caixin revealed, with a manufacturing PMI score of 49.2. That missed expectations for a score of 50.2 and was down from 50.3 in July.

China Evergrande Group shares tumbled 3 percent in Hong Kong after the property developer warned it could default on borrowings.

Japanese markets rallied amid bets Prime Minister Yoshihide Suga’s maneuverings might help restore political stability.

Media reports suggest Suga intends to dissolve the lower house of parliament in mid-September and is considering holding the general election on October 17. However, Suga said he had no such plan.

The Nikkei 225 Index jumped 361.48 points, or 1.3 percent, to 28,451.02, a 1-1/2-month high. The broader Topix closed 1 percent higher at a five-month high of 1,980.79.

Construction equipment maker Komatsu soared 5.4 percent on a Bloomberg report that Cathie Wood’s Ark Autonomous Technology and Robotics ETF has been buying the firm’s American depository receipts almost daily since mid-August.

In economic news, the manufacturing sector in Japan continued to expand in August, albeit at a slower pace, the latest report from Jibun Bank showed earlier today, with a manufacturing PMI score of 52.7 – down from 53.0 in July.

Australian markets ended off their day’s lows after data showed GDP grew a better-than-expected 9.6 percent year-on-year in the second quarter of 2021, helping quell fears of the nation recording its second recession in two years.

The country’s current account surplus widened to a record high in the June quarter, while the manufacturing sector expanded at a slower pace in August, separate reports showed.

The benchmark S&P/ASX 200 Index slipped 7.80 points, or 0.1 percent, at 7,527.10 after reaching a two-week closing high the previous day. The broader All Ordinaries Index ended down 10.30 points, or 0.1 percent, at 7,813.

Mining heavyweights BHP and Rio Tinto fell 1.3 percent and 2.4 percent, respectively, weighed down by a drop iron ore prices, while lender NAB rallied 2.2 percent. The other three big banks rose between 0.4 percent and 0.9 percent.

Mesoblast slumped 5.7 percent to extend losses for a second day after the biotechnology company said its annual attributable loss widened to $98.8 million.

Seoul stocks rose for the fourth straight day after data showed the country’s exports last month jumped 35 percent year-on-year, extending gains for the 10th month on the back of continued global demand for chips and autos. Investors shrugged off weak reports on manufacturing and the trade balance.

The benchmark Kospi edged up 7.75 points, or 0.2 percent, to 3,207.02. Chipmaker SK Hynix and internet portal operator Naver both rose around 1.4 percent, while chemical firm LG Chem plunged 4.9 percent.

In New Zealand, the benchmark NZX 50 Index extended gains to a fourth session, ending up 24.66 points, or 0.2 percent, at 13,243.49 – its highest close since January 27.

U.S. stocks ended slightly lower overnight but logged strong gains for August on continued optimism over the economic recovery despite uncertainty surrounding the delta variant of the coronavirus.

The Dow and the S&P 500 slipped around 0.1 percent each as a survey showed consumer sentiment tumbling in August on the back of rising gas and food prices. The tech-heavy Nasdaq Composite ended largely unchanged.

Source: Read Full Article