By Chao Deng
Stocks in Japan and China slipped Thursday as investors assessed
the latest read on Chinese manufacturing activity.
The Hang Seng Index fell 0.3% to 23,333.18 and the Shanghai
Composite lost 1% to 2,302.42 after HSBC's preliminary report on
Chinese manufacturing activity came in at 50.4 in October, compared
with 50.2 in September.
"Short term, investors seem to be in a 'good news is bad news'
mood," said Ryan Tsai, Asia equity strategist at Standard
Chartered. "A slight pickup in [purchasing managers index] may be
interpreted as no major policy support ahead."
Still, reaction in the region was relatively muted given
investors' expectation of slowdown signs from China. Earlier in the
week, data showed China's economy grew at 7.3% in the third quarter
compared with a year earlier, a slower pace from the second quarter
but a touch faster than expected.
In Japan, the Nikkei Stock Average lost 0.4% to 15,138.96, a
small move compared with a band of gains and losses of more than 2%
each day this week. It was the least volatile session in a month
and came amid relatively light volume of just 2 billion shares.
The dollar was at Yen107.21 when the market in Japan closed, a
touch higher from Yen107.15 late Wednesday in New York.
Bargain hunters have helped shield Asian stocks from major
losses amid global financial market volatility this month. Stocks
in Japan have suffered most, losing more than 6% on the Nikkei
month-to-date. But the Hang Seng Index in Hong Kong has pulled
ahead as one of the best performers in the region with a gain of
1.8% this month. Australia's S&P ASX 200 , too, has gained 1.7%
in October. Investors have been encouraged in part as volatility
subsides globally -- in the U.S., investors have been waiting in
the wings to buy stocks at lower prices, and trading has been
calmer after wild swings last week.
In Tokyo, auto air-bag maker Takata Corp. lost 6.2% following
news that U.S. federal prosecutors are investigating the firm in
connection with defective air bags linked to two deaths.
Mitsubishi Motors fell 2.6% after the firm reported a 23% rise
in first-half consolidated operating profit that missed
expectations. The auto maker blamed higher costs.
In Hong Kong, China CNR shares hit a record high after the firm
reached a $556.6 million deal to build 284 new cars for the Boston
subway. The shares rose as much as 4% before paring gains,
finishing up 3.2%. CNR's deal came as a statement from finance
ministers attending this week's Asia-Pacific Economic Cooperation
summit urged support across the region for greater investment in
infrastructure, principally via public-private partnership.
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