Asia report: China PMI disappoints, while Japan's offers promise
Hong Kong Hang Seng -0.66%
Tokyo Nikkei +0.85%
Shanghai Composite -0.44%
BSE Sensex +0.17%
There was a mix of green and red across Asian indices after disappointing poll data on Chinese manufacturing and more encouraging numbers from Japan's producers.
China's flash purchasing managers' index (PMI) data from HSBC/Markit was disappointing, with August figures falling to a three-month low and remaining marginally in growth territory at 50.3.
The fall was more than the market expected, with traders and analysts looking for a decline to 51.5 from July's 51.7. This was the largest forecast miss on record, according to reports.
Deutsche Bank said: "Those with a bullish persuasion may say that a softer PMI print creates room for more stimulus but the market is clearly in profit-taking mode this morning after the strong run-up over the past few months."
Japan
The preliminary Japanese manufacturing PMI figure of 52.4 was well up from a final reading of 50.5 in July.
Following Wednesday's encouraging export data from the country and recent rises in employment numbers, Tokyo is hopeful that economic growth is recovering after a slump following April's sales tax increase.
Thailand and elsewhere
Thailand's junta leader Prayuth Chan-ocha has been appointed as the new prime minister, unsurprisingly as he was the only candidate. Prayuth led the coup against the former government last May after six months of political tensions and violent protests in the country.
He is due to retire from the army in September and is expected to press for political reforms before new elections by the end of 2015.
In India foreign direct investment (FDI) continued to flow strongly into the country, surging by 34% to $1.92bn in June according to official data and up by the same degree during the second quarter $7.23bn.
The new government has raised limits for foreign investment in companies to 49% in defence manufacturing and relaxed the policy in construction sector, with proposals to increase the cap in insurance to the same level.
Elsewhere, an overnight report from credit agency Fitch said that the external funding needs were moderating for Asian sovereigns with more vulnerable external finances. This is supporting the credit profiles of the likes of India, Indonesia, and Sri Lanka.
OH