By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asia's major stock markets lost ground
Tuesday, after some weak global manufacturing data, despite an
improvement at Chinese factories.
Japan's S&P/ASX 200 index fell 0.4%, South Korea's Kospi
lost 0.5%, and Australia's S&P/ASX 200 index traded down
0.2%.
The losses followed on from a lower finish Monday on Wall Street
after a measure of U.S. factory activity unexpectedly contracted in
November, and as uncertainty lingered over the U.S. fiscal cliff of
automatic tax hikes and spending cuts.
The "surprisingly weak U.S. data dampened sentiment overnight,
reversing an earlier 'risk-on' mood due to solid Chinese data,"
said Crédit Agricole strategist Kintai Cheung.
Euro-zone manufacturing activity also contracted in November,
falling for a 16th successive month, with the headline index at
46.2, well below the 50 level that separates expansion from
contraction.
The Chinese manufacturing data -- competing versions of which
were released Saturday and Monday -- presented a relatively upbeat
view of China's economy.
UBS equity strategist David Cassidy said Tuesday that an
expected improvement for China was one of the key reasons they were
"pretty bullish" on Asian equities for 2013.
"As long as we can eke out economic growth next year in China
and the U.S., I think that the line of least resistance is up,"
said Cassidy.
Valuations are reflecting a lot of pessimism, and "we think that
Asia is a beneficiary of loose global monetary policy," Cassidy
said.
But with the weaker European and U.S. numbers, Asian equities
moved lower Tuesday, with mining stocks among the worst performers
in Australia as BHP Billiton Ltd. (BHP) slipped 0.4%, and PanAust
Ltd. declined 1.8%.
The Reserve Bank of Australia was set to announce its latest
policy decision later in the session, and short-term interest-rate
markets were pricing in a more-than-90% chance of a quarter-point
cut to the benchmark rate.
In Japan, auto-maker stocks were broadly lower after November
sales updates, with Toyota Motor Corp. (TM) slipping 0.3%, and
Nissan Motor Co. (NSANY) dropping 1.6%.
Tech exporters also saw some weakness, with Hitachi Ltd. (HIT)
lower by 1.5%, and camera-maker Nikon Corp. (NINOF) falling 1.5%,
while Advantest Corp. (ATE) tumbled 3.4% after Crédit Suisse cut
its rating to underperform from outperform.
Sharp Corp. (SHCAF) rose 1.7%, however, after a Nikkei news
report that it plans to join Qualcomm Inc. (QCOM) to develop an
energy-efficient LCD smartphone panel.
In South Korea, tech major Samsung Electronics Co. (SSNLF)
traded down 0.5%, while Hyundai Motor Co. (HYMTF), dropped 0.7%
despite posting November gains in both its U.S. and Korean
sales.
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