By Daniel Inman
Stocks in Hong Kong and Shanghai fell on Tuesday, while a strong
performance in BHP Billiton Ltd. helped the Australian stock market
rise.
Hong Kong's Hang Seng Index fell 0.5% to close at 23,315.99, as
the index was weighed down by its second-largest constituent, China
Mobile Ltd. (CHL).
The world's largest mobile carrier by subscribers dropped 3.4%
after reporting that nine-month net profit fell 1.9% -- the result
of tough competition as well as increased network investments and
handset subsidies.
The Shanghai Composite fell 0.8% to 2,210.65, easing after a
strong Monday session, where the index jumped 1.6% after comments
from the State Council over the weekend raised expectations for
economic reform.
There was also some weakness in Hong Kong-listed Chinese
developers, after data showed that new home prices rose on year in
September in 69 of 70 cities. Signs of rising house prices are
often taken negatively, as it increases expectations that Beijing
could step in to cool the property market.
China Resources Land Ltd. dropped 1%, while China Overseas Land
& Investment Ltd. (0688.HK) fell 0.8%.
More broadly, investors were looking ahead to the U.S. labor
report for September later Tuesday. Nonfarm payrolls has been a
closely-watched economic indicator in global markets, examined by
investors to see whether the U.S. economy is healthy enough for the
Federal Reserve to roll back its stimulus program.
Expectations were high in September for the central bank to
change direction, and markets were taken by surprise when it kept
its bond-buying program unchanged. The recent government shutdown
in the U.S. has led many to conclude that stimulus will stay steady
until next year.
The dollar was slightly higher against the Japanese yen (USDJPY)
at Yen98.35, compared with Yen98.17 late Monday in New York.
Most regional stocks added to gains seen in the past few
sessions, brought about by the resolution of the government
shutdown in the U.S., as well as a pickup in Chinese growth in the
most recent quarter.
South Korea's Kospi Composite Index added 0.2% to 2,056.12, and
Japan's Nikkei Stock Average gained 0.1% to 14,713.25. The
Philippines' PSE Composite added 0.1% to 6,603.60.
The S&P/ASX 200 rose 0.4% to 5,373.10, helped by mining
giant BHP Billiton (BHP), which rose 2.4% after it raised its
iron-ore production guidance for the 2014 fiscal year. The firm now
expects to produce 212 million metric tons of iron ore, or 2.4%
above the previous guidance.
Also in Sydney, retailer David Jones Ltd. (DJS.AU) ] dropped
2.1% after Chief Executive Paul Zahra said Monday that he will
resign for personal reasons after the company finds a
successor.
Shares in chemicals firm Asahi Kasei Corp. rose 2.7% in Tokyo
after a Nikkei newspaper report said that the company's
consolidated first-half operating profit likely surged 83% on year
to more than Yen70 billion. The results would set a new record for
an interim period.
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