Asian shares drop as investors ignore China and Japan figures
Source: AFP |
April 2, 2013, Tuesday
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Print Edition
Print Edition
ASIAN markets slipped in holiday-hit trade yesterday, with investors unimpressed by a slight improvement in key economic indicators out of China and Japan.
The Bank of Japan is set to hold a policy meeting this week, while there are lingering concerns about political uncertainty in Italy as well as debt-ravaged Cyprus.
Tokyo slipped 2.12 percent, or 262.89 points, to 12,135.02 on the back of the stronger yen and Seoul lost 0.44 percent, or 8.90 points, to 1,995.99.
Sydney, Hong Kong and Wellington were closed for the Easter break.
The BOJ's closely watched Tankan survey of large Japanese manufacturers for the past three months showed a slight improvement in optimism for the world's number three economy, the first uptick in three quarters.
The survey showed sentiment at minus 8 between January and March, up from minus 12 three months earlier. The figures represent the percentage of firms saying business conditions are good minus those saying they are bad.
However, the figures were unable to halt a sell-off in shares and a rise in the yen.
Hideki Matsumura, senior economist at Japan Research Institute, told Dow Jones Newswires: "Sentiment is getting better broadly, but the improvement isn't as strong as expected."
And Tachibana Securities market analyst Kenichi Hirano said the negative reaction "may have resulted from the perception that with the Nikkei having performed so well (gaining 19 percent so far in 2012), general business sentiment should have been at least a little better".
Australian bank Westpac said in a note to clients that investor focus was on Thursday's BOJ announcement, the first under the stewardship of Haruhiko Kuroda. He has promised aggressive steps to kick-start the economy and end decades of deflation.
"Some disappointment around this meeting is likely and we have a downward bias for the dollar-yen in the week ahead," Westpac said.
In China data showed manufacturing activity grew at its fastest pace in almost a year last month, but was off analysts' hopes, indicating the world's number two economy was growing frailly.
The official purchasing managers' index hit 50.9 in March, the highest since April 2012 and up from 50.1 in February.
A reading above 50 indicates expansion while anything below points to contraction.
Separately, British bank HSBC - with a survey that focuses more on smaller enterprises - said its final PMI for March stood at 51.6, up from 50.4 in February.
Oil prices fell, with New York's main contract, West Texas Intermediate light sweet crude for delivery in May, down 50 cents to US$96.73 a barrel. Brent North Sea crude for May was down 37 cents to US$109.65.
The Bank of Japan is set to hold a policy meeting this week, while there are lingering concerns about political uncertainty in Italy as well as debt-ravaged Cyprus.
Tokyo slipped 2.12 percent, or 262.89 points, to 12,135.02 on the back of the stronger yen and Seoul lost 0.44 percent, or 8.90 points, to 1,995.99.
Sydney, Hong Kong and Wellington were closed for the Easter break.
The BOJ's closely watched Tankan survey of large Japanese manufacturers for the past three months showed a slight improvement in optimism for the world's number three economy, the first uptick in three quarters.
The survey showed sentiment at minus 8 between January and March, up from minus 12 three months earlier. The figures represent the percentage of firms saying business conditions are good minus those saying they are bad.
However, the figures were unable to halt a sell-off in shares and a rise in the yen.
Hideki Matsumura, senior economist at Japan Research Institute, told Dow Jones Newswires: "Sentiment is getting better broadly, but the improvement isn't as strong as expected."
And Tachibana Securities market analyst Kenichi Hirano said the negative reaction "may have resulted from the perception that with the Nikkei having performed so well (gaining 19 percent so far in 2012), general business sentiment should have been at least a little better".
Australian bank Westpac said in a note to clients that investor focus was on Thursday's BOJ announcement, the first under the stewardship of Haruhiko Kuroda. He has promised aggressive steps to kick-start the economy and end decades of deflation.
"Some disappointment around this meeting is likely and we have a downward bias for the dollar-yen in the week ahead," Westpac said.
In China data showed manufacturing activity grew at its fastest pace in almost a year last month, but was off analysts' hopes, indicating the world's number two economy was growing frailly.
The official purchasing managers' index hit 50.9 in March, the highest since April 2012 and up from 50.1 in February.
A reading above 50 indicates expansion while anything below points to contraction.
Separately, British bank HSBC - with a survey that focuses more on smaller enterprises - said its final PMI for March stood at 51.6, up from 50.4 in February.
Oil prices fell, with New York's main contract, West Texas Intermediate light sweet crude for delivery in May, down 50 cents to US$96.73 a barrel. Brent North Sea crude for May was down 37 cents to US$109.65.
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