Asian Stocks Drop as China Manufacturing Gauge Falls

Asian stocks fell, dragging the regional benchmark index down from an almost one-month high, after a Chinese manufacturing index dropped more than estimated.

Newcrest Mining Ltd., an Australian gold producer, lost 4.8 percent in Sydney as futures on the precious metal slid. Naver Corp. (035420) sank 5.9 percent in Seoul amid concern an expansion at WhatsApp Inc. following its acquisition by Facebook Inc. would curb sales at the South Korean Internet site. China Petroleum & Chemical Corp. surged 6.9 percent in Hong Kong after Asia’s biggest oil refiner said it’s seeking private investors.

The MSCI Asia Pacific Index lost 1 percent to 136.15 as of 10:23 a.m. in Hong Kong, as all 10 industry groups declined. A preliminary reading for a Purchasing Managers’ Index fell to a seven-month low, a report today showed, adding to signs of a factory slowdown that will limit growth. The International Monetary Fund, in a staff report prepared for central bankers and finance ministers from the Group of 20, said yesterday “significant downside risks remain” for the world economy.

(Source: Bloomberg)

Most Asia Stocks Fall Led by Consumer Shares; Bridgestone Sinks

Most Asian stocks fell, with the regional benchmark index sliding from a three-week high, as consumer companies led declines.

Panasonic Corp., the consumer-electronics maker pivoting toward products for cars and homes after record losses, lost 2.1 percent in Tokyo. Bridgestone Corp. dropped 3 percent after the Japanese tiremaker forecast slower-than-expected full-year profit growth. CapitaLand Ltd. fell 1 percent in Singapore after Southeast Asia’s biggest developer reported a 46 percent decline in fourth-quarter profit. Seek Ltd. jumped 19 percent in Sydney after the online hiring company reported an increase in first-half profit and said a unit will acquire a rival website.

The MSCI Asia Pacific Index slipped 0.2 percent to 137.28 as of 11:15 a.m. in Tokyo, falling for the first time in four days. About five shares fell for every four that rose on the gauge. The market value of global equities rose to $62.1 trillion on Feb. 17, above the level reached at the end of December, data compiled by Bloomberg show.

Japan’s Topix (TPX) fell 0.4 percent today on volume that was 14 percent below the 30-day intraday average. The gauge rose the most in the five months yesterday after the Bank of Japan doubled a growth funding facility.

South Korea’s Kospi index slid 0.4 percent. China’s Shanghai Composite Index dropped 0.3 percent, while Hong Kong’s Hang Seng Index lost 0.1 percent. Taiwan’s Taiex index was little changed. Australia’s S&P/ASX 200 Index (AS51) rose 0.3 percent and New Zealand’s NZX 50 Index added 0.1 percent. Singapore’s Straits Times Index climbed 0.5 percent.

(Source: Bloomberg)                       

Fed Isolates Weather From Weakness as Growth Cools: Economy

This year’s harsh winter is causing the pace of U.S. economic growth to fall along with the mercury.

February payrolls may be the next victim of the severe weather that has gripped the country during the last three months, following disappointing data on retail sales and manufacturing in January. This week’s snow and ice storms in the eastern U.S. came during the period the Bureau of Labor Statistics refers to in its monthly employer survey, which it uses to calculate changes in payrolls, hours and earnings for the jobs report scheduled for release March 7.

That may make it difficult for Federal Reserve policy makers to gauge whether signs of weakness can be chalked up to the elements, or if the economy has taken a turn for the worse. Firms from Goldman Sachs Group Inc. to Morgan Stanley have reduced their estimates for first-quarter U.S. growth, after forecasters entered the year with the most optimism since 2010.

To be counted as employed in the BLS survey, workers on non-farm payrolls must have received pay for some part of the earnings period that includes the 12th of the month. The winter storm may affect the February survey results if large numbers of workers had to stay home for the entire period without pay and weren’t counted.

(Source: Bloomberg)

Hong Kong Stocks on Course for Highest Close This Month

Hong Kong stocks rose as investors await Federal Reserve Chairman Janet Yellen’s first testimony on monetary policy. Energy companies led gains.

The Hang Seng Index (HSI) advanced 0.7 percent to 21,719.15 as of 9:35 a.m. in Hong Kong, heading for its highest close since Jan. 30. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, added 0.6 percent to 9,675.68. CLP Holdings Ltd., a Hong Kong-based electricity provider, rallied 3.2 percent, while Cnooc Ltd., China’s biggest offshore oil and gas producer, climbed 2.3 percent.

The Hang Seng Index entered a so-called correction last week, falling more than 10 percent from a high in December after China and U.S. factory data disappointed investors. The gauge slid 7.4 percent this year through yesterday, the worst performer after Japan’s Nikkei 225 Stock Average among 24 developed markets tracked by Bloomberg.

The Hong Kong benchmark index traded at 9.6 times estimated earnings yesterday, approaching levels seen during China’s cash crunch in June. The H-share gauge is down 11 percent this year through yesterday. Global equity losses in 2014 peaked at $3 trillion on Feb. 4 and have since narrowed to $1.6 trillion, data compiled by Bloomberg show.

China may report as early as today that new yuan loans climbed to 1.1 trillion yuan ($182 billion) in January from 482.5 billion yuan the previous month, according to economists surveyed by Bloomberg. Data on aggregate financing and money supply are also due this week, with no fixed date for release. A report on January trade is due tomorrow, before inflation data on Feb. 14.

(Source: Bloomberg)

Asian Stocks Advance After U.S. Rally on Jobs Data as Yen Drops

Asian stocks rose, with the regional benchmark index heading for its longest stretch of gains this year, after jobs data spurred the biggest two-day rally for U.S. equities since October and the yen weakened.

Nissan Motor Co. climbed 1 percent, pacing gains among Japanese exporters. Rio Tinto Group (RIO), the world’s second-largest mining company, added 1.2 percent in Sydney after copper futures rose a third day. Landing International Development Ltd. surged 13 percent in Hong Kong after the Chinese property developer and partner Genting Singapore Plc announced plans to build a $2.2 billion casino resort in South Korea’s Jeju island.

The MSCI Asia Pacific Index added 0.4 percent to 133.75 at 11:19 a.m. in Tokyo, rising a fourth day. The gauge has climbed 2.8 percent from a five-month low on Feb. 4. The Topix index rose 0.7 percent as the yen weakened. The Standard & Poor’s 500 Index jumped 1.3 percent on Feb. 7. Japan’s current-account deficit widened to a record in December, while China’s central bank signaled volatility in money-market interest rates will persist and borrowing costs will rise.

The MSCI Asia-Pacific gauge dropped 4.6 percent in January for its worst start to a year since 2009 amid concern about the Federal Reserve’s stimulus cuts, China’s economic slowdown and volatility in developing markets. Global equity losses in 2014 peaked at $3 trillion on Feb. 4 and have since narrowed to $1.6 trillion, data compiled by Bloomberg show.

(Source: Bloomberg)