By Chao Deng
Stocks in Asia were mixed on Monday, showing little reaction to a failed coup in Turkey, although investors responded to data out of China suggesting that the country’s housing market was expanding at less frenetic pace.
Australia’s S&P ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.33% was up 0.5%, and the Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.09% closed up 0.2%. But the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.31% fell 0.4%.
The immediate market impact of the coup in Turkey was limited after the country’s government reasserted control quickly over the weekend, arresting thousands of members of the military. Investors in Asia were still focused on China, where data last week showed the country maintaining its growth pace of 6.7% in the second quarter.
Turkey's president speaks at massive public funeral
Turkish president Recep Tayyip Erdogan gave a speech during a massive public funeral in Istanbul, held for several people killed while fighting the coup attempt.
On Monday, data showed housing prices in the country rising at a slower pace in June from a month earlier. Chinese home prices increased 0.7% from a month earlier, compared with gains of 0.8% and 1.0% recorded in May and April, respectively.
Shares of China Vanke Co. /zigman2/quotes/205643772/delayed CN:000002 -2.01% , the country’s biggest home builder, fell 2.6% in Shanghai, while Poly Real Estate Group Co. /zigman2/quotes/201864015/delayed CN:600048 -1.98% recovered to gain 0.9%. Sectors that rallied last week, such as steel and coal, also gave up some of their gains as profit-taking set in.
In Hong Kong, a Hang Seng subindex that tracks property stocks was up 0.7%, ahead of most other sectors. But there were losses in individual names, including Longfor Properties Co. /zigman2/quotes/200000250/delayed HK:960 -1.36% , which fell 2%, and China Resources Land /zigman2/quotes/202417326/delayed HK:1109 -1.26% , which slipped 0.7%.
The broader China market saw weakness on concerns that last week’s resilient GDP numbers decrease the likelihood that the central bank will announce easing, according to traders.
“The PBOC [People’s Bank of China] will likely micromanage short-term liquidity in the system” instead of introducing broad interest-rate cuts given the current data, said Gavin Parry, managing director of Hong Kong-based brokerage Parry International Ltd.
Market sentiment on Monday was “a bit treading water with Japan offline and Europe coming up,” said Parry. Markets in Japan were closed for a holiday, putting a pause on that market’s rally — the Nikkei /zigman2/quotes/210597971/delayed JP:NIK -0.39% 9.2% last week.
Crude prices were largely steady as investors focused on favorable growth data reported by the U.S. and China, dismissing worries that Turkey’s failed military coup in Turkey points to risks for the flow of oil through the Turkish straits, a crucial shipping and trading route.
Brent crude oil prices up just 0.3% at $47.74 a barrel. That buoyed energy shares in Australia, which along with consumer stocks, led up the broader market for the eighth straight session.
The country’s big miners fell on weaker base-metals prices, however, with BHP Billiton Ltd. /zigman2/quotes/201448516/delayed AU:BHP -0.78% down 0.7% and Rio Tinto Ltd /zigman2/quotes/200083756/delayed AU:RIO -0.46% falling 0.8%.
An exception to the muted reaction to the Turkish coup was Malaysia-listed IHH Healthcare whose shares declined 1.2%, underperforming the broader benchmark’s 0.1% loss. IHH is Asia’s largest private hospitals operator, with operations in Turkey, which it counts as one of its key markets.