Asia report: Markets finish lower as China growth slows

Markets in Asia bounced back from their Pyongyang-led fall on Wednesday, as traders seemingly looked past the latest missile test from North Korea, although fresh data from China showed a slowdown in growth.

Japan’s Nikkei 225 was up 0.25% at 20,081.63, as the yen weakened against the greenback, last losing 0.3% to JPY 113.62.

On the mainland, the Shanghai Composite added 0.76% to 3,207.08, while the smaller, tech-heavy Shenzhen Composite rose 0.88% to 1,913.14.

China’s unofficial Caixin services PMI for June was released on Wednesday, showing a slowdown in the country’s services sector for the month.

The reading fell to 51.6 for June, from 52.8 in May, while the composite PMI - which accounts for both the manufacturing and services sectors - fell to 51.1 from 51.5 month-on-month.

South Korea’s Kospi finished 0.33% higher at 2,388.35, while the Hang Seng Index in Hong Kong was ahead 0.52% at 25,521.97.

Seoul-listed defence stocks were mixed in the wake of Tuesday’s missile test from the northern half of the peninsula.

Hanwha Techwin, a defence contractor, was ahead 1.72%, while Korea Aerospace lost 0.85%.

Retailers were the winners on the Kospi on Wednesday, as Lotte Shopping rose 1.34% after Nomura upgraded the stock to ‘buy’ from ‘neutral’.

In Hong Kong, shares in Chinese internet giant Tencent were 0.67% firmer, after one of the company’s more popular smartphone games was criticised in one of the state’s official newspapers.

Oil prices were slightly higher during the Asian session, though they soon turned south as Europe took the trading baton, with Brent crude last down 1.16% at $49.04 and West Texas Intermediate off 1.29% at $46.45.

Australia’s S&P/ASX 200 went against the rest of the region, falling 0.36% to close at 5,763.25, led higher by global travel agency chain Flight Centre, which added 10.36% after it reported strong guidance for the next year.

The company - which owns the chain of ubiquitous red-and-white high street travel outlets - said its underlying profit before tax was forecast to lie between AUD 325m and AUD 330m.

In New Zealand, the S&P/NZX 50 also fell, losing 0.3% to 7,620.64, led lower by former state telecoms monopoly Spark, which was 1.9% softer.

Both of the down under dollars were weaker, with the Aussie last off 0.08% at AUD 1.3162 against the greenback, and the Kiwi retreating 0.23% to NZD 1.3754.