4.03 AM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Asian markets mixed, China up on manufacturing data

Published

Asian markets were mixed on Thursday, with data showing expanding Chinese manufacturing activity providing support while a slump in troubled electronics giant Panasonic stunted Tokyo's rise.

Wall Street's lead was tepid in a quiet first session back after superstorm Sandy battered the US East Coast on Monday and Tuesday, forcing markets to close for two days.

Tokyo was 0.08 percent up by the break, Seoul eased 0.92 percent and Sydney shed 0.72 percent, while Shanghai climbed 1.04 percent and Hong Kong was 0.26 percent higher.

Results from China showed the country's manufacturing activity expanded for the first time in three months, adding to renewed optimism that the world's number two economy is beginning to awake from its recent slumber.

The official purchasing managers' index (PMI) stood at 50.2 last month, better than 49.8 in September, according to the China Federation of Logistics and Purchasing and the National Bureau of Statistics.

A PMI reading above 50 indicates expansion, while anything below points to contraction.

Separately, a survey by HSBC came in at 49.5 in October -- from 47.9 in September -- which, although still in contraction, represents another rise.

The official PMI had contracted in August and September because of a broader slump in the economy caused by weak demand in Europe and the United States.

The official number is "showing that the economy is on the way to a moderate recovery", said Grace Ng, senior China economist at JPMorgan.

She told Dow Jones Newswires that it is "reinforcing the message that the economy has bottomed out".

On Tokyo's Nikkei, shares were weighed down by Panasonic, which dived almost 20 percent a day after it said it expected to post a loss of $9.6 billion in the fiscal year to March, almost as much as it lost in the previous 12 months.

The firm blamed the horrific estimate -- which is a sharp reversal from its previous vow to return to the black by March -- on restructuring costs and writedowns.

The projection was a reversal of its earlier vow to return to the black by March next year.

In New York, traders resumed work for the first time after a historic two-day closure of markets caused by Sandy, which has wreaked havoc on the country's eastern seaboard.

But many market participants were still unable to get to work owing to power and transport outages as well as severe flooding.

The Dow and S&P 500 closed flat after opening higher, while the Nasdaq lost 0.36 percent.

In Europe, Greece unveiled a tough new austerity budget as the European Union said there was still work to be done before the recession-hit country could access loan funds needed to stave off bankruptcy.

And data showed unemployment in the 17-nation eurozone hit a record high of 11.6 percent in September.

On currency markets the dollar fetched 79.99 yen in early trade, compared with 79.78 yen in New York late Wednesday.

The euro bought $1.2964 and 103.72 yen against $1.2958 and 103.39 yen.

Oil prices were lower with New York's main contract, light sweet crude for December delivery, shedding 13 cents to $86.11 a barrel and Brent North Sea crude for delivery in December dipping 28 cents to $108.42.

Gold was at $1,719.70 at 0240 GMT compared with $1,721.80 late Wednesday.