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July 24, 2013, 5:54 a.m. EDT

China stocks drop on downbeat data; India slides

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Mainland Chinese stocks fell Wednesday after a gauge of the country’s manufacturing sector dropped to a 11-month low, while Indian shares dropped after the country’s central bank further tightened its policies to support the rupee.

The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.60%  fell 0.5% as investors digested preliminary data released by HSBC, showing China’s manufacturing Purchasing Managers’ Index slid to 47.7 in July from a final reading of 48.2 in June. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.27% ended 0.2% higher.


Reuters Enlarge Image
Asian stocks move in narrow ranges ahead of HSBC’s initial reading of Chinese manufacturing conditions in July. (Pictured: Shanghai’s Pudong financial district)

Both benchmarks came off their lows amid expectations that policy makers were likely to step in to support the economy, after a state-owned media report earlier this week cited Premier Li Keqiang as saying that Beijing wouldn’t tolerate an economic growth of less than 7%.

“As Beijing has recently stressed to secure the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilize growth,” said HSBC’s chief China economist Hongbin Qu, in a statement accompanying the PMI data release.

“Combined with the broad-based slowdown in economic activity in June, we expect more announcements from various government bodies in the coming weeks to support growth,” said Jian Chang, chief China economist at Barclays.

Shares of China Minsheng Banking Corp. /zigman2/quotes/203910009/delayed CN:600016 -0.85% /zigman2/quotes/200749234/delayed CMAKY -7.99%  slid 2%, Jiangxi Copper Co. /zigman2/quotes/201334192/delayed CN:600362 -2.15% /zigman2/quotes/204256025/delayed JIXAY -2.94% dropped 1.4% and Poly Real Estate Group Co. /zigman2/quotes/201864015/delayed CN:600048 +1.13%  skidded 3.1% in Shanghai.

Chinese property shares advanced in Hong Kong, with China Overseas Land & Investment Ltd. /zigman2/quotes/205731176/delayed HK:688 +0.38%   /zigman2/quotes/202573805/delayed CAOVY -3.67%  rising 1.9% and China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 +0.87%   /zigman2/quotes/201656413/delayed CRBJF 0.00% climbing 1.7%.

Japan down, but Australia rises

Meanwhile, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -3.34%  lost 0.3% after a two-day advance, and Taiwan’s Taiex  dropped 0.2%, while Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -1.60% and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.18% added 0.4% each.

/zigman2/quotes/210597966/delayed 1 40,281.20, -82.03, -0.20%
/zigman2/quotes/210562010/realtime/sampled USDINR 71.6790, -0.2560, -0.3559%
Sensex Vs. Dollar-rupee
Year-to-date percentage changes

India’s Sensex /zigman2/quotes/210597966/delayed IN:1 -0.20% dropped 1.2% in Mumbai afternoon trading, a day after the Reserve Bank of India restricted banks’ access to a source of cheap funds, as part of its efforts to support the rupee.

Banks led the drop, with ICICI Bank Ltd. /zigman2/quotes/204318043/delayed IN:532174 +0.31% /zigman2/quotes/208917098/composite IBN -4.32%  sliding 3.9% and State Bank of India /zigman2/quotes/206945693/delayed IN:500112 +1.15% shedding 3.1%.

Sanjay Mathur, a strategist at the Royal Bank of Scotland, said the RBI’s move, together with New Delhi’s curbs on gold imports, will strengthen the rupee, but would also boost borrowing costs in the country, weighing on the economy.

“Our 5% growth estimate [for the current financial year ending March 31, 2014] may need to be revisited,” Mathur said.

A weaker rupee makes imports more expensive, with energy imports in particular adversely affecting India’s trade balance and boosting consumer prices in the country. The U.S. dollar has risen as much as 7.8% against the rupee so far this year.

Shares of several technology firms rose after Apple Inc. /zigman2/quotes/202934861/composite AAPL -4.75% reported better-than-expected sales despite suffering a steep decline in quarterly profits.

/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,013.05
-18.18 -0.60%
Volume: 44.16B
Feb. 25, 2020 3:01p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,893.23
+72.35 +0.27%
Volume: 1.92M
Feb. 25, 2020 4:37p
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/zigman2/quotes/203910009/delayed
CN : China: Shanghai
¥ 5.81
-0.05 -0.85%
Volume: 98.03M
Feb. 25, 2020 3:00p
P/E Ratio
4.78
Dividend Yield
5.94%
Market Cap
¥256.57 billion
Rev. per Employee
¥5.19M
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/zigman2/quotes/200749234/delayed
US : U.S.: OTC
$ 6.79
-0.59 -7.99%
Volume: 22.00
Feb. 21, 2020 5:20p
P/E Ratio
38.36
Dividend Yield
6.01%
Market Cap
$57.21 billion
Rev. per Employee
$798,641
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/zigman2/quotes/201334192/delayed
CN : China: Shanghai
¥ 14.55
-0.32 -2.15%
Volume: 42.07M
Feb. 25, 2020 3:00p
P/E Ratio
20.42
Dividend Yield
1.37%
Market Cap
¥51.49 billion
Rev. per Employee
¥10.12M
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/zigman2/quotes/204256025/delayed
US : U.S.: OTC
$ 51.90
-1.57 -2.94%
Volume: 1.00
Feb. 24, 2020 5:20p
P/E Ratio
33.52
Dividend Yield
1.97%
Market Cap
$16.73 billion
Rev. per Employee
$1.55M
loading...
/zigman2/quotes/201864015/delayed
CN : China: Shanghai
¥ 15.26
+0.17 +1.13%
Volume: 95.77M
Feb. 25, 2020 3:00p
P/E Ratio
8.20
Dividend Yield
3.28%
Market Cap
¥180.06 billion
Rev. per Employee
¥3.42M
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/zigman2/quotes/205731176/delayed
HK : Hong Kong
HK$ 26.60
+0.10 +0.38%
Volume: 30.19M
Feb. 25, 2020 4:08p
P/E Ratio
6.25
Dividend Yield
3.57%
Market Cap
HK$290.34 billion
Rev. per Employee
HK$30.79M
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/zigman2/quotes/202573805/delayed
US : U.S.: OTC
$ 16.87
-0.64 -3.67%
Volume: 14,900
Feb. 24, 2020 3:56p
P/E Ratio
6.21
Dividend Yield
3.03%
Market Cap
$37.24 billion
Rev. per Employee
$3.93M
loading...
/zigman2/quotes/202417326/delayed
HK : Hong Kong
HK$ 34.85
+0.30 +0.87%
Volume: 11.55M
Feb. 25, 2020 4:08p
P/E Ratio
7.48
Dividend Yield
3.60%
Market Cap
HK$246.37 billion
Rev. per Employee
HK$3.68M
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/zigman2/quotes/201656413/delayed
US : U.S.: OTC
$ 4.41
0.00 0.00%
Volume: 400.00
Feb. 24, 2020 1:12p
P/E Ratio
7.42
Dividend Yield
N/A
Market Cap
$31.45 billion
Rev. per Employee
$470,019
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/zigman2/quotes/210597971/delayed
JP : Nikkei
22,605.41
-781.33 -3.34%
Volume: 0.00
Feb. 25, 2020 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,866.60
-111.70 -1.60%
Volume: 1.04M
Feb. 25, 2020 5:32p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,103.61
+24.57 +1.18%
Volume: 1.57M
Feb. 25, 2020 3:32p
loading...
/zigman2/quotes/210597966/delayed
IN : India: Bombay
40,281.20
-82.03 -0.20%
Volume: 0.00
Feb. 25, 2020 3:30p
loading...
/zigman2/quotes/204318043/delayed
IN : India: Bombay
531.20
+1.65 +0.31%
Volume: 551,127
Feb. 25, 2020 5:45p
P/E Ratio
36.81
Dividend Yield
0.19%
Market Cap
₹3427.00 billion
Rev. per Employee
₹15.51M
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/zigman2/quotes/208917098/composite
US : U.S.: NYSE
$ 14.40
-0.65 -4.32%
Volume: 9.60M
Feb. 24, 2020 6:30p
P/E Ratio
35.23
Dividend Yield
0.20%
Market Cap
$46.59 billion
Rev. per Employee
$226,822
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/zigman2/quotes/206945693/delayed
IN : India: Bombay
326.60
+3.70 +1.15%
Volume: 1.29M
Feb. 25, 2020 5:45p
P/E Ratio
20.67
Dividend Yield
N/A
Market Cap
₹2881.76 billion
Rev. per Employee
₹12.32M
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 298.18
-14.87 -4.75%
Volume: 55.55M
Feb. 24, 2020 4:00p
P/E Ratio
23.55
Dividend Yield
1.03%
Market Cap
$1304.68 billion
Rev. per Employee
$1.98M
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