By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Stock markets in China and Australia
traded lower Friday to start the new month on a downbeat note after
a pair of lackluster Chinese manufacturing surveys, but Japanese
shares managed to find some buyers.
Hong Kong's Hang Seng Index lost 0.4% while the Shanghai
Composite Index fell 1.1%, while Australia's S&P/ASX 200 index
lost 0.4%.
Japan's Nikkei Stock Average traded up 0.2%, however, while
South Korean markets were closed for a holiday.
Asian stocks surged Thursday, the last session of February as
investors keyed into signs of continued easy global monetary
policy, but U.S. shares ended with small losses later in the day.
Read: U.S. stocks stall in stretch toward record
Mixed economic data dampened sentiment on Wall Street, as
markets looked toward draconian government spending cuts set to
begin Friday that are expected to weigh somewhat on U.S. economic
growth. Read: Sequester cuts near as Senate bills fail
The losses for U.S. equities "suggests that there could be some
consolidation ahead, as U.S. automatic spending cuts looks set to
kick in," said Crédit Agricole strategist Gary Yau.
Data out Friday on the Chinese economy didn't do much to lift
the market mood, showing that growth in the manufacturing sector's
activity almost ground to a halt in February, according to an
official survey. A separate survey from HSBC also indicated slower
growth. Read: China manufacturing grows marginally, surveys
show
According to Deutsche Bank economist Jun Ma, the decrease in
February's Purchasing Manufacturing Index "can largely be explained
by the seasonality resulting from the Lunar New Year effect."
China more or less shuts down for a week for the Chinese new
year holiday -- which this year fell in early February.
Resource-sector firms were weak in mainland Chinese trading,
with Jiangxi Copper Co. (JIXAY) down 2.8% and Angang Steel Co.
(ANGGY) lower by 1.1%.
Banks were lower as well, with Bank of China Ltd. (BACHY) down
1.3% and China Merchants Bank Co. (600036.SH) falling 2.9%.
Energy firms lost ground in Hong Kong, with Cnooc Ltd. (CEO)
down 2.8% and PetroChina Ltd. (PTR) moving lower by 1.3%. China
Coal Energy Co. (CCOZY) declined 2.2%.
The volatile property sector likewise lost ground in Hong Kong,
with Hang Lung Properties Ltd (HLPPY) down 2.7%.
Sun Hung Kai Properties Ltd. (SUHJY) fell 1.8% after cutting its
fiscal-year property sales target to 32 billion Hong Kong dollars
($4.1 billion), and reporting a 1.9% decline in first-half
underlying net profit.
In Japanese trading, the market pulled off early lows as the
dollar started to make up some ground against the yen (USDJPY),
trading at Yen92.54, ticking down from Yen92.63 in late North
American trading Thursday but well above the greenback's Yen92.18
level a day earlier.
"We continue to favor a weaker Japanese yen over the medium
term. A collapse in Japan's current-account surplus is the main
driver," said foreign exchange strategists at Commonwealth Bank of
Australia.
Among exporters, Toyota Motor Corp. (TM) lost 0.3%, Panasonic
Corp. (PC) also dropped 0.3%, and Mitsubishi Motors Corp. (MMTOY)
traded lower by 1%.
But Nissan Motor Co. (NSANY) rose 0.9%, and Sony Corp. (SNE)
gained 4.6%. The Nikkei business daily reported that Sony had sold
a building in Tokyo for 111.1 billion yen ($1.2 billion).
Sharp Corp. (SHCAF) rose 2.4% after a Kyodo News report Thursday
saying the electronics firm would soon accept executives from two
major banks to secure their financial support. Read: Sharp to
accept executives from banks
Tokyo Electric Power Co. (9501.TO) jumped 2.9% after a Nikkei
News report that the firm was ordering more than Yen10 billion
worth of supplies and equipment to use for decommissioning reactors
at its Fukishima plant destroyed in the 2011 nuclear disaster.
Kobe Steel Ltd. (KBSTY) which was reportedly supplying the
material, traded flat.
Gold futures fell for a second straight session in New York on
Thursday, ending February with a fifth straight monthly loss,
helping send gold producers lower in Australia. Read: Gold drops,
notches 5th straight monthly loss
Newcrest Mining Ltd. (NCMGF) moved down 1.8% in Sydney trade,
while Perseus Mining Ltd. (PMNXF) tumbled 5.6%.
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