Asia report: Markets mixed as China data disappoints again

Markets in Asia finished their Thursday sessions in a mixed state, after fresh data from China showed a second month of contraction in a row for its economy.

In Japan, the Nikkei 225 was up 1.06% at 20,773.49, as the yen strengthened 0.39% to JPY 108.61.

On the mainland, the Shanghai Composite gained 0.35% to 2,584.57, and the smaller, technology-heavy Shenzhen Composite weakened 0.69% to 1,274.74.

New data out of Beijing showed the country’s official manufacturing purchasing managers’ index rose slightly to 49.5 for January, up from the 49.4 reported for December.

A reading of below 50 indicates a contraction in the sector.

South Korea’s Kospi slipped 0.06% to 2,204.85, while the Hang Seng Index in Hong Kong rose 1.08% to 27,942.47.

Technology giant Samsung Electronics was among the leading losers in Seoul, moving south by 0.54% after it warned shareholders to expect weaker earnings in 2019.

That outlook cqame after its fourth quarter operating profit plunged 29%.

Events across the Pacific also had some influence on traders in Asia, after the Federal Reserve decided to stand pat on interest rates overnight.

The Federal Open Market Committee also signalled it was adjusting its policy to one of patience, after recent rate hikes.

“The committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate,” the FOMC said.

Analysts also pointed out that the committee was no longer using the word ‘gradual’ in its statement.

Oil prices continued to rise, with Brent crude last up 0.55% at $61.99 per barrel, and West Texas Intermediate adding 0.11% to $54.29.

In Australia, the S&P/ASX 200 slid 0.37% to settle at 5,864.70, even as the energy sector gained 1.7% on the back of higher oil prices overnight.

Of the major energy firms in the sunburnt country, Beach Energy rocketed up 5.13% after it raised its production guidance for the financial year, and Woodside Petroleum rose 0.82%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.7% to 8,985.34, led higher by specialist dairy exporter A2 Milk, which was ahead 3.7%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.43% at AUD 1.3739, and the Kiwi advancing 0.38% to NZD 1.4444.