Asia stocks take double hit from Fed, China

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asian stocks tumbled Thursday as a deterioration in Chinese manufacturing activity and a further spike in Shanghai interbank lending rates applied more selling pressure after the Federal Reserve signaled it may wind down its bond purchases.

Stocks in Hong Kong and Sydney were slammed after preliminary data released by HSBC showed its China Purchasing Managers’ Index for June slipped to a nine-month low of 48.3, staying under the 50-point level for a second straight month. A reading below 50 shows conditions worsened.

The Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.07%  slumped 2.9% to finish the day at a nine-month low, and the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.11% dropped 2.8% for its for its lowest close in more than six months.

“Beijing prefers to use reforms rather than stimulus to sustain growth. While reforms can boost long-term growth prospects, they still have limited impact in the short term,” HSBC China economist Hongbin Qu said in a statement accompanying the PMI release.

The losses came as two short-term interbank money market rates jumped to record levels , while the People’s Bank of China refrained from injecting liquidity.

“Money conditions have tightened sharply. ... Such monetary tightening is inconsistent with recent soft patch in terms of growth and a weakening of price pressures,” said Dariusz Kowalczyk, a senior economist at Credit Agricole.

Meanwhile, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.30%  fell 2.1%, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.03%  lost 2%, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -1.68%  gave up 1.7% and Taiwan’s Taiex dropped 1.4%, after the Fed’s guidance on its bond purchases overnight.

“What caught the market off guard is that the Fed anticipates the pace of recovery in the labor market to be quicker than what the market previously predicted. Consequently, the possibility of scaling down the current bond-buying program is likely to be sooner than what is currently priced in,” said CMC Markets sales trader Miguel Audencial.

Commodity-sector stocks were hurt across the region as prices for gold and other metals dropped after the Fed’s announcement.

Reuters

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Japan stocks join peers in other Asia markets as casualties of the Federal Reserve’s signal that it may slow its bond buying soon.

Shares of Cnooc Ltd. /zigman2/quotes/203421416/delayed HK:883 +0.64%   skidded 4.4% and gold miner Zijin Mining Corp. /zigman2/quotes/204517000/delayed HK:2899 -3.00% /zigman2/quotes/209836076/delayed ZIJMF -6.83%  fell 1.8% in Hong Kong, while Jiangxi Copper Co. /zigman2/quotes/201334192/delayed CN:600362 -0.58%  slid 3.9% in Shanghai.

In Sydney, Fortescue Metals Group Ltd. /zigman2/quotes/202351558/delayed AU:FMG +1.06% /zigman2/quotes/204116626/delayed FSUMF +1.79%  lost 6.6%, also weighed after it cut its outlook for iron-ore shipments, and gold miner Newcrest Mining Ltd.  gave up 3.6%.

Energy producer Inpex Corp. /zigman2/quotes/206689846/delayed JP:1605 -2.83%   /zigman2/quotes/206936121/delayed IPXHF -2.90% dropped 3.7% in Tokyo, and Korea Zinc Co. /zigman2/quotes/202765860/delayed KR:010130 -4.50%  gave up 1.6% in Seoul.

Chinese banks extended losses in the absence of any efforts by policy makers to ease tight money-market conditions.

Heavyweight stock China Construction Bank Corp. /zigman2/quotes/208062653/delayed HK:9 0.00% /zigman2/quotes/208974133/delayed HK:939 -0.22%   /zigman2/quotes/207732534/delayed CICHY +0.71%   /zigman2/quotes/208058581/delayed CN:601939 +0.79%  lost 5.2%, and Industrial & Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 -0.27%   /zigman2/quotes/202401350/delayed IDCBY +0.37%   /zigman2/quotes/202525815/delayed CN:601398 0.00%  shed 3.8% in Hong Kong. The banks’ Shanghai-listed shares fell 2% and 2.2%, respectively.

The People’s Bank of China — China’s central bank — “is worried by the unsustainable growth rate of credit and is sending a message that market participants shouldn’t take for granted that they will always have access to cheap interbank loans,” Capital Economics wrote in a note to clients.

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Real-estate stocks retreated in Japan after the Fed’s decision, with Sumitomo Realty & Development Co. /zigman2/quotes/206628792/delayed JP:8830 -2.21%  losing 4.9% and Mitsui Fudosan Co. /zigman2/quotes/205394574/delayed JP:8801 -2.21%   /zigman2/quotes/208297288/delayed MTSFF -0.32%  dropping 3.8%.

Among other notable decliners, shares of Nikon Corp. /zigman2/quotes/203281219/delayed JP:7731 -1.02% /zigman2/quotes/209396469/delayed NINOY -0.48%  fell 5.8%, Hitachi Construction Machinery Corp. /zigman2/quotes/205375504/delayed JP:6305 -3.66% /zigman2/quotes/202415695/delayed HTCMY -4.55%  gave up 5.3%, and convenience-store operator Seven & I Holdings Co. /zigman2/quotes/207666111/delayed JP:3382 -0.19% /zigman2/quotes/210292336/delayed SVNDY +0.25% shed 2.7%.

But some automobile exporters advanced as the U.S. dollar jumped after a rally in Treasury yields overnight in the wake of the Fed decision. Shares of Subaru-maker Fuji Heavy Industries Co. /zigman2/quotes/203522406/delayed JP:7270 -4.13% /zigman2/quotes/200526066/delayed FUJHY -0.77%  rose 1%, and Mazda Motor Corp. /zigman2/quotes/204777714/delayed JP:7261 -3.00% /zigman2/quotes/206326885/delayed MZDAY -0.57%  climbed 2.2%.

Banks and other high dividend-yield issues fell in Australia after the the Australian dollar /zigman2/quotes/210560947/realtime/sampled AUDUSD -0.0303%  got knocked below 93 U.S. cents in the wake of the Fed’s decision.

Shares of Westpac Banking Corp. /zigman2/quotes/203084975/delayed AU:WBC +0.05%   lost 3.7%, and Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA +0.16% /zigman2/quotes/207018701/delayed CBAUF +5.11%  fell 3.1%.

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Hang Seng Index

HK : Hong Kong Exchange

16,334.37

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Volume: 1.88M

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Shanghai Composite Index

CN : China: Shanghai

2,969.56

+3.35 +0.11%

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S&P/ASX 200 Benchmark Index

AU : S&P ASX

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Volume: 725,843

Dec. 8, 2023 5:04p

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KOSPI Composite Index

KR : Korea Exchange

2,517.85

+25.78 +1.03%

Volume: 431,797

Dec. 8, 2023 6:05p

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NIKKEI 225 Index

JP : Nikkei

32,307.86

-550.45 -1.68%

Volume: 0.00

Dec. 8, 2023 3:15p

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CNOOC Ltd.

HK : Hong Kong

$ 12.54

+0.08 +0.64%

Volume: 88.25M

Dec. 8, 2023 4:08p

P/E Ratio

3.91

Dividend Yield

10.69%

Market Cap

$632.86 billion

Rev. per Employee

$23.81M

/zigman2/quotes/204517000/delayed

Add to watchlist HK:2899

Zijin Mining Group Co. Ltd.

HK : Hong Kong

$ 11.64

-0.36 -3.00%

Volume: 25.36M

Dec. 8, 2023 4:08p

P/E Ratio

14.09

Dividend Yield

0.00%

Market Cap

$339.05 billion

Rev. per Employee

$6.34M

/zigman2/quotes/209836076/delayed

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Zijin Mining Group Co. Ltd.

US : U.S.: OTC

$ 1.50

-0.11 -6.83%

Volume: 2,108

Dec. 5, 2023 1:01p

P/E Ratio

14.22

Dividend Yield

N/A

Market Cap

$43.32 billion

Rev. per Employee

$809,072

/zigman2/quotes/201334192/delayed

Add to watchlist CN:600362

Jiangxi Copper Co. Ltd. A

CN : China: Shanghai

¥ 17.26

-0.10 -0.58%

Volume: 7.77M

Dec. 8, 2023 3:00p

P/E Ratio

9.63

Dividend Yield

2.90%

Market Cap

¥50.10 billion

Rev. per Employee

¥20.35M

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Fortescue Ltd.

AU : Australia: Sydney

$ 25.75

+0.27 +1.06%

Volume: 4.68M

Dec. 8, 2023 4:10p

P/E Ratio

11.13

Dividend Yield

6.80%

Market Cap

$77.18 billion

Rev. per Employee

$2.47M

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Fortescue Ltd.

US : U.S.: OTC

$ 16.50

+0.29 +1.79%

Volume: 1,011

Dec. 7, 2023 12:26p

P/E Ratio

10.60

Dividend Yield

N/A

Market Cap

$50.79 billion

Rev. per Employee

$1.66M

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Inpex Corp.

JP : Japan: Tokyo

¥ 1,907.50

-55.50 -2.83%

Volume: 14.77M

Dec. 8, 2023 3:00p

P/E Ratio

5.58

Dividend Yield

3.88%

Market Cap

¥2695.86 billion

Rev. per Employee

¥662.23M

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Inpex Corp.

US : U.S.: OTC

$ 13.38

-0.40 -2.90%

Volume: 12,000

Dec. 6, 2023 3:45p

P/E Ratio

5.38

Dividend Yield

N/A

Market Cap

$18.31 billion

Rev. per Employee

$4.77M

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Korea Zinc Co. Ltd.

KR : S. Korea: KRX

₩ 498,500

-23,500 -4.50%

Volume: 117,712

Dec. 8, 2023 6:13p

P/E Ratio

16.28

Dividend Yield

4.01%

Market Cap

₩10447.80 billion

Rev. per Employee

₩5.96B

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Keyne Ltd.

HK : Hong Kong

$ 0.01

0.00 0.00%

Volume: 0.00

Dec. 8, 2023 4:08p

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N/A

Dividend Yield

N/A

Market Cap

$57.10 million

Rev. per Employee

$492,381

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China Construction Bank Corp.

HK : Hong Kong

$ 4.44

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Volume: 274.16M

Dec. 8, 2023 4:08p

P/E Ratio

3.01

Dividend Yield

9.50%

Market Cap

$1133.31 billion

Rev. per Employee

$4.42M

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China Construction Bank Corp. ADR

US : U.S.: OTC

$ 11.36

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Volume: 43,576

Dec. 7, 2023 3:59p

P/E Ratio

3.02

Dividend Yield

8.13%

Market Cap

$145.37 billion

Rev. per Employee

$564,858

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China Construction Bank Corp.

CN : China: Shanghai

¥ 6.35

+0.05 +0.79%

Volume: 81.64M

Dec. 8, 2023 3:00p

P/E Ratio

4.78

Dividend Yield

6.13%

Market Cap

¥1038.46 billion

Rev. per Employee

¥3.97M

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Industrial & Commercial Bank of China Ltd.

HK : Hong Kong

$ 3.63

-0.01 -0.27%

Volume: 210.59M

Dec. 8, 2023 4:08p

P/E Ratio

3.21

Dividend Yield

9.07%

Market Cap

$1698.85 billion

Rev. per Employee

$4.05M

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Industrial & Commercial Bank of China Ltd. ADR

US : U.S.: OTC

$ 9.26

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Volume: 85,388

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P/E Ratio

3.21

Dividend Yield

7.63%

Market Cap

$217.50 billion

Rev. per Employee

$517,032

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Industrial & Commercial Bank of China Ltd.

CN : China: Shanghai

¥ 4.73

0.00 0.00%

Volume: 198.38M

Dec. 8, 2023 3:00p

P/E Ratio

4.64

Dividend Yield

6.42%

Market Cap

¥1556.67 billion

Rev. per Employee

¥3.70M

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Add to watchlist JP:8830

Sumitomo Realty & Development Co. Ltd.

JP : Japan: Tokyo

¥ 4,242.00

-96.00 -2.21%

Volume: 2.21M

Dec. 8, 2023 3:00p

P/E Ratio

11.57

Dividend Yield

1.39%

Market Cap

¥2072.06 billion

Rev. per Employee

¥74.88M

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Mitsui Fudosan Co. Ltd.

JP : Japan: Tokyo

¥ 3,497.00

-79.00 -2.21%

Volume: 4.67M

Dec. 8, 2023 3:00p

P/E Ratio

14.52

Dividend Yield

2.00%

Market Cap

¥3374.53 billion

Rev. per Employee

¥96.22M

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Mitsui Fudosan Co. Ltd.

US : U.S.: OTC

$ 23.33

-0.08 -0.32%

Volume: 73.00

Nov. 30, 2023 11:06a

P/E Ratio

13.41

Dividend Yield

N/A

Market Cap

$22.10 billion

Rev. per Employee

$693,737

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Nikon Corp.

JP : Japan: Tokyo

¥ 1,359.00

-14.00 -1.02%

Volume: 2.39M

Dec. 8, 2023 3:00p

P/E Ratio

13.40

Dividend Yield

3.68%

Market Cap

¥462.50 billion

Rev. per Employee

¥35.71M

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Nikon Corp. ADR

US : U.S.: OTC

$ 9.34

-0.05 -0.48%

Volume: 288.00

Dec. 7, 2023 2:31p

P/E Ratio

12.91

Dividend Yield

2.29%

Market Cap

$3.14 billion

Rev. per Employee

$257,220

/zigman2/quotes/205375504/delayed

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Hitachi Construction Machinery Co. Ltd.

JP : Japan: Tokyo

¥ 3,527.00

-134.00 -3.66%

Volume: 2.04M

Dec. 8, 2023 3:00p

P/E Ratio

8.15

Dividend Yield

4.11%

Market Cap

¥806.59 billion

Rev. per Employee

¥54.06M

/zigman2/quotes/202415695/delayed

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Hitachi Construction Machinery Co. Ltd. ADR

US : U.S.: OTC

$ 50.98

-2.43 -4.55%

Volume: 603.00

Dec. 7, 2023 9:30a

P/E Ratio

8.14

Dividend Yield

3.12%

Market Cap

$5.48 billion

Rev. per Employee

$389,760

/zigman2/quotes/207666111/delayed

Add to watchlist JP:3382

Seven & I Holdings Co. Ltd.

JP : Japan: Tokyo

¥ 5,730.00

-11.00 -0.19%

Volume: 3.75M

Dec. 8, 2023 3:00p

P/E Ratio

22.48

Dividend Yield

1.97%

Market Cap

¥5193.61 billion

Rev. per Employee

¥139.11M

/zigman2/quotes/210292336/delayed

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Seven & I Holdings Co. Ltd. ADR

US : U.S.: OTC

$ 19.94

+0.05 +0.25%

Volume: 178,468

Dec. 7, 2023 3:56p

P/E Ratio

21.84

Dividend Yield

1.49%

Market Cap

$35.28 billion

Rev. per Employee

$1.00M

/zigman2/quotes/203522406/delayed

Add to watchlist JP:7270

Subaru Corp.

JP : Japan: Tokyo

¥ 2,562.50

-110.50 -4.13%

Volume: 5.67M

Dec. 8, 2023 3:00p

P/E Ratio

7.15

Dividend Yield

3.75%

Market Cap

¥2084.52 billion

Rev. per Employee

¥112.92M

/zigman2/quotes/200526066/delayed

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Subaru Corp. ADR

US : U.S.: OTC

$ 9.03

-0.07 -0.77%

Volume: 83,595

Dec. 7, 2023 3:59p

P/E Ratio

7.03

Dividend Yield

1.90%

Market Cap

$14.16 billion

Rev. per Employee

$812,051

/zigman2/quotes/204777714/delayed

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Mazda Motor Corp.

JP : Japan: Tokyo

¥ 1,506.00

-46.50 -3.00%

Volume: 8.62M

Dec. 8, 2023 3:00p

P/E Ratio

5.75

Dividend Yield

3.32%

Market Cap

¥994.56 billion

Rev. per Employee

¥92.85M

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Mazda Motor Corp. ADR

US : U.S.: OTC

$ 5.23

-0.03 -0.57%

Volume: 139,892

Dec. 7, 2023 3:57p

P/E Ratio

5.58

Dividend Yield

2.26%

Market Cap

$6.76 billion

Rev. per Employee

$668,413

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US : Tullett Prebon

0.6600

-0.0002 -0.0303%

Volume: 0.0000

Dec. 8, 2023 8:19a

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Westpac Banking Corp.

AU : Australia: Sydney

$ 21.92

+0.01 +0.05%

Volume: 4.69M

Dec. 8, 2023 4:10p

P/E Ratio

11.51

Dividend Yield

6.48%

Market Cap

$76.37 billion

Rev. per Employee

$1.31M

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AU : Australia: Sydney

$ 106.44

+0.17 +0.16%

Volume: 1.43M

Dec. 8, 2023 4:10p

P/E Ratio

18.87

Dividend Yield

4.23%

Market Cap

$178.00 billion

Rev. per Employee

$992,761

/zigman2/quotes/207018701/delayed

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US : U.S.: OTC

$ 67.73

+3.30 +5.11%

Volume: 0.00

Nov. 28, 2023 1:30p

P/E Ratio

17.85

Dividend Yield

N/A

Market Cap

$114.53 billion

Rev. per Employee

$667,779