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Aug. 1, 2013, 5:16 a.m. EDT

Asia stocks up after China data, Fed outcome

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asian stocks rose Thursday after data showing the U.S. economy grew faster than expected and as the Federal Reserve refrained from providing guidance on the scale of its bond purchases.

Chinese shares rallied after an official gauge signaled an improvement in the manufacturing sector, while Japanese equities were aided by a string of strong earnings reports, including from two of the nation’s largest banks, as well as from Panasonic Corp. and Tokyo Electric Power Co.

/zigman2/quotes/210598127/delayed SHCOMP 3,501.99, -1.50, -0.04%
/zigman2/quotes/210598065/realtime DJIA 31,496.30, +572.16, +1.85%
Year-to-date percentage changes
Shanghai Composite Vs. Dow Jones Industrial Average

The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.04%  jumped 1.8%, and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.47%  rose 0.9% after China’s official manufacturing Purchasing Managers’ Index unexpectedly rose to 50.3 in July, from 50.1 in June.

A reading above 50 indicates an improvement, while one below 50 shows a deterioration in conditions for the sector.

The official data differed from the final reading of a separate survey by HSBC, which put China’s PMI for last month at 47.7, an 11-month low.

“The increase [in the official PMI reading] didn’t come completely out of the blue. The official index gives a large weight to heavy industry, where there has been other evidence of a turnaround recently,” Capital Economics wrote in a note to clients.

Stock gains were spread across a number of sectors in both Shanghai and Hong Kong, and followed reassurances from policy makers on China’s economic growth.

Xu Shaoshi, the head of China’s top planning agency, the National Development and Reform Commission, expressed confidence in a statement Wednesday that the country’s economy will expand at the government’s official target of 7.5% this year.

Shares of China Oilfield Services Ltd. /zigman2/quotes/206410210/delayed CN:601808 +1.76% jumped 5.1%, Haitong Securities Co. /zigman2/quotes/203443667/delayed CN:600837 +1.25%  rose 6.5%, and property developer Gemdale Corp. /zigman2/quotes/208026094/delayed CN:600383 -2.45%  climbed 3.5% in Shanghai.

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In Hong Kong, logistics firm Li & Fung Ltd. climbed 3.1%, Internet major Tencent Holdings Ltd. /zigman2/quotes/204605823/delayed HK:700 -1.59% /zigman2/quotes/207908563/delayed TCEHY +0.40%  gained 2.5%, and Hang Lung Properties Ltd. /zigman2/quotes/200230831/delayed HK:101 -1.34%   /zigman2/quotes/205863241/delayed HLPPY +0.40%  added 1.8%.

Meanwhile, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.23% endured a volatile start to climb 2.5%, its best percentage gain in more than three weeks. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.74%  rose 0.2% and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.57% gained 0.4% and after the Federal Reserve’s statement overnight.

“The main event of the week has come and gone now, and it seems to have left market participants with a bit more confusion. While there were no major surprises from the Fed, analysts feel the statement was slightly more dovish,” said IG Markets strategist Stan Shamu.

In its statement following a two-day policy meeting, the Fed gave no hint of plans to pare the U.S. central bank’s $85 billion-a-month in asset purchases.

Meanwhile, data released Wednesday by the Commerce Department showed the U.S. economy grew at an annual rate of 1.7% in the second-quarter, beating expectations for a 1% expansion.

Australian energy and retail groups advanced, with Woodside Petroleum Ltd. /zigman2/quotes/203437212/delayed AU:WPL +3.12% /zigman2/quotes/206334215/delayed WOPEY +4.99%  climbing 1.8%, and Wesfarmers Ltd. /zigman2/quotes/204567133/delayed AU:WES -0.78% /zigman2/quotes/201137979/delayed WFAFF +0.54%  rising 0.4%.

But banks were mostly lower, as the high-dividend-yield sector felt the weight of the Australian dollar’s /zigman2/quotes/210560947/realtime/sampled AUDUSD +0.0390%  drop to a nearly three-year low Wednesday.

Among them, Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA +0.08% /zigman2/quotes/207018701/delayed CBAUF -0.71%  fell 1.5% and National Australia Bank Ltd. /zigman2/quotes/210431826/delayed AU:NAB +0.30%   /zigman2/quotes/205253475/delayed NAUBF 0.00%  retreated 1.6%.


Tokyo Stock Exchange Enlarge Image
Japan stocks rise, with help from some strong earnings reports.

In Tokyo, a slew of earnings reports released late on Wednesday influenced stock moves.

Panasonic /zigman2/quotes/201785256/delayed JP:6752 +3.57% /zigman2/quotes/202333059/delayed PCRFY +4.01%  jumped 6.8% after its operating results beat estimates, and Tokyo Electric /zigman2/quotes/202771076/delayed JP:9501 +2.61% /zigman2/quotes/205839055/delayed TKECY -5.07%  soared 8% after the company swung back to a quarterly profit.

Mazda Motor Corp. /zigman2/quotes/204777714/delayed JP:7261 +3.97% /zigman2/quotes/206326885/delayed MZDAY +5.20% rose 3.4% after also reporting its results.

Mitsubishi UFJ Financial Group Inc. /zigman2/quotes/207520099/delayed JP:8306 -0.18%   rose 4% after its quarterly profit rose 40%, while Mizuho Financial Group Inc. /zigman2/quotes/204507985/delayed JP:8411 +0.29% /zigman2/quotes/200950467/composite MFG +1.02%  gained 4.9% following a 35% improvement in net profit.

On the downside, shares of Honda Motor Co. /zigman2/quotes/200490352/delayed JP:7267 +1.61% /zigman2/quotes/207173990/composite HMC +2.76% fell 0.7% after a drop in profits.

/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,501.99
-1.50 -0.04%
Volume: 35.64B
March 5, 2021 3:01p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
29,098.29
-138.50 -0.47%
Volume: 4.00M
March 5, 2021 4:09p
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/zigman2/quotes/206410210/delayed
CN : China: Shanghai
¥ 17.35
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March 5, 2021 3:00p
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CN : China: Shanghai
¥ 12.12
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Market Cap
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CN : China: Shanghai
¥ 12.34
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Market Cap
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/zigman2/quotes/204605823/delayed
HK : Hong Kong
HK$ 679.00
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Market Cap
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US : U.S.: OTC
$ 87.25
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Market Cap
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HK : Hong Kong
HK$ 19.08
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Market Cap
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Rev. per Employee
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loading...
/zigman2/quotes/205863241/delayed
US : U.S.: OTC
$ 12.49
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Volume: 21,429
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P/E Ratio
N/A
Dividend Yield
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Market Cap
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Rev. per Employee
N/A
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/zigman2/quotes/210597971/delayed
JP : Nikkei
28,864.32
-65.79 -0.23%
Volume: 0.00
March 5, 2021 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,710.80
-49.90 -0.74%
Volume: 702,246
March 5, 2021 5:05p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,026.26
-17.23 -0.57%
Volume: 1.19M
March 5, 2021 3:32p
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/zigman2/quotes/203437212/delayed
AU : Australia: Sydney
$ 25.46
+0.77 +3.12%
Volume: 3.09M
March 5, 2021 4:10p
P/E Ratio
N/A
Dividend Yield
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Market Cap
$24.45 billion
Rev. per Employee
$1.42M
loading...
/zigman2/quotes/206334215/delayed
US : U.S.: OTC
$ 19.99
+0.95 +4.99%
Volume: 21,574
March 5, 2021 3:45p
P/E Ratio
N/A
Dividend Yield
1.70%
Market Cap
$18.74 billion
Rev. per Employee
$987,603
loading...
/zigman2/quotes/204567133/delayed
AU : Australia: Sydney
$ 49.53
-0.39 -0.78%
Volume: 1.74M
March 5, 2021 4:10p
P/E Ratio
29.88
Dividend Yield
3.69%
Market Cap
$56.16 billion
Rev. per Employee
$287,411
loading...
/zigman2/quotes/201137979/delayed
US : U.S.: OTC
$ 38.93
+0.21 +0.54%
Volume: 1,000
March 4, 2021 1:01p
P/E Ratio
33.29
Dividend Yield
N/A
Market Cap
$44.16 billion
Rev. per Employee
$192,673
loading...
/zigman2/quotes/210560947/realtime/sampled
US : Tullett Prebon
0.7687
+0.0003 +0.0390%
Volume: 0.0000
March 5, 2021 4:59p
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/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 86.45
+0.07 +0.08%
Volume: 3.13M
March 5, 2021 4:10p
P/E Ratio
19.25
Dividend Yield
2.87%
Market Cap
$153.22 billion
Rev. per Employee
$917,769
loading...
/zigman2/quotes/207018701/delayed
US : U.S.: OTC
$ 65.65
-0.47 -0.71%
Volume: 252.00
March 5, 2021 9:30a
P/E Ratio
21.04
Dividend Yield
N/A
Market Cap
$117.42 billion
Rev. per Employee
$615,248
loading...
/zigman2/quotes/210431826/delayed
AU : Australia: Sydney
$ 26.39
+0.08 +0.30%
Volume: 8.15M
March 5, 2021 4:10p
P/E Ratio
32.91
Dividend Yield
2.27%
Market Cap
$86.90 billion
Rev. per Employee
$763,679
loading...
/zigman2/quotes/205253475/delayed
US : U.S.: OTC
$ 19.47
0.00 0.00%
Volume: 108.00
March 1, 2021 10:38a
P/E Ratio
35.86
Dividend Yield
N/A
Market Cap
$64.42 billion
Rev. per Employee
$517,254
loading...
/zigman2/quotes/201785256/delayed
JP : Japan: Tokyo
¥ 1,435.50
+49.50 +3.57%
Volume: 8.94M
March 5, 2021 3:00p
P/E Ratio
18.86
Dividend Yield
1.39%
Market Cap
¥3349.49 billion
Rev. per Employee
¥28.88M
loading...
/zigman2/quotes/202333059/delayed
US : U.S.: OTC
$ 13.30
+0.51 +4.01%
Volume: 507,070
March 5, 2021 3:59p
P/E Ratio
18.53
Dividend Yield
1.47%
Market Cap
$30.94 billion
Rev. per Employee
$265,607
loading...
/zigman2/quotes/202771076/delayed
JP : Japan: Tokyo
¥ 354.00
+9.00 +2.61%
Volume: 20.20M
March 5, 2021 3:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
¥567.18 billion
Rev. per Employee
¥164.72M
loading...
/zigman2/quotes/205839055/delayed
US : U.S.: OTC
$ 3.18
-0.17 -5.07%
Volume: 2,528
March 4, 2021 3:16p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$5.14 billion
Rev. per Employee
$1.51M
loading...
/zigman2/quotes/204777714/delayed
JP : Japan: Tokyo
¥ 917.00
+35.00 +3.97%
Volume: 4.96M
March 5, 2021 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥577.51 billion
Rev. per Employee
¥67.95M
loading...
/zigman2/quotes/206326885/delayed
US : U.S.: OTC
$ 4.25
+0.21 +5.20%
Volume: 59,548
March 5, 2021 3:58p
P/E Ratio
N/A
Dividend Yield
1.49%
Market Cap
$5.33 billion
Rev. per Employee
$625,010
loading...
/zigman2/quotes/207520099/delayed
JP : Japan: Tokyo
¥ 565.00
-1.00 -0.18%
Volume: 64.59M
March 5, 2021 3:00p
P/E Ratio
13.23
Dividend Yield
4.42%
Market Cap
¥7257.23 billion
Rev. per Employee
¥48.47M
loading...
/zigman2/quotes/204507985/delayed
JP : Japan: Tokyo
¥ 1,566.00
+4.50 +0.29%
Volume: 8.64M
March 5, 2021 3:00p
P/E Ratio
9.95
Dividend Yield
4.79%
Market Cap
¥3971.42 billion
Rev. per Employee
¥66.52M
loading...
/zigman2/quotes/200950467/composite
US : U.S.: NYSE
$ 2.96
+0.03 +1.02%
Volume: 335,366
March 5, 2021 4:10p
P/E Ratio
2.12
Dividend Yield
3.61%
Market Cap
$36.69 billion
Rev. per Employee
$611,783
loading...
/zigman2/quotes/200490352/delayed
JP : Japan: Tokyo
¥ 3,101.00
+49.00 +1.61%
Volume: 6.07M
March 5, 2021 3:00p
P/E Ratio
12.91
Dividend Yield
2.64%
Market Cap
¥5354.33 billion
Rev. per Employee
¥68.28M
loading...
/zigman2/quotes/207173990/composite
US : U.S.: NYSE
$ 29.39
+0.79 +2.76%
Volume: 1.46M
March 5, 2021 4:00p
P/E Ratio
12.79
Dividend Yield
2.24%
Market Cap
$49.46 billion
Rev. per Employee
$628,000
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Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.

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