Asia report: Most markets rise as China property prices slip

Asia-Pacific markets saw mixed performances on Friday, as Chinese stocks saw their ninth consecutive session of gains amid fresh property prices data.

Russ Mould, investment director at AJ Bell, said indices around the world were hitting record highs as the latest test for investor sentiment came and went in the form of Nvidia’s results.

“These managed to outmatch the market’s already elevated expectations, suggesting the AI theme is very real,” Mould noted.

“However, how healthy it is for a single stock to have such a big bearing on global markets is questionable.”

“The market may now be short of big catalysts until the middle of next week as the US reporting season begins to wind down, with core PCE - personal consumption expenditures - data from the US likely to be closely watched next Thursday given it is the Federal Reserve’s preferred measure of inflation.”

Mainland China stocks rise on mostly positive day for region

China’s Shanghai Composite rose 0.55% to 3,004.88, while the Shenzhen Component edged up by 0.28% to reach 9,069.42.

Leading the gains in Shanghai were Chongqing Dima Industry, Cultural Investment Holdings, and Inesa Intelligent Tech, which saw gains of 10.44%, 10.3%, and 10.05%, respectively.

In Japan, markets remained closed for the Emperor’s Birthday holiday.

Meanwhile, Hong Kong's Hang Seng Index experienced a slight decline of 0.1% to settle at 16,725.86.

Key losers in Hong Kong included Wharf Real Estate Investment, Lenovo Group, and Xinyi Glass Holdings, which saw declines of 3.36%, 3.28%, and 2.77%, respectively.

South Korea's Kospi index edged up by 0.13% to 2,667.70, with notable gains seen in Meritz Financial, DB Insurance, and Yuhan, rising by a respective 9.26%, 4.49%, and 4.2%.

Meanwhile, Australia's S&P/ASX 200 index saw a modest increase of 0.43% to reach 7,643.60, with standout performers including Block, Tabcorp Holdings, and Lovisa Holdings, which saw gains of 16.51%, 6.92%, and 6.85%, respectively.

In New Zealand, the S&P/NZX 50 index rose by 0.25% to 11,719.82, with Fisher & Paykel Healthcare, Investore Property, and Sanford among the top performers, with gains of 2.76%, 2.7%, and 2.1%, respectively.

On the currency front, the dollar was last 0.14% stronger on the yen, trading at JPY 150.74, while it declined 0.05% against the Aussie to AUD 1.5244.

The greenback was meanwhile 0.11% stronger on the Kiwi, last changing hands at NZD 1.6161.

In the commodities market, Brent crude futures were last down 1.15% on ICE to $82.71 per barrel, while the NYMEX quote for West Texas Intermediate fell 1.3% to $77.59.

Housing prices slip in China, retail sales slide further in NZ

In economic news, China's commercial housing sales prices saw a narrowing decline on a month-on-month basis, according to fresh data from the National Bureau of Statistics.

Official figures revealed that sales prices of newly-built commercial houses in first-tier cities dropped 0.3% in January compared to the prior month, marking a 0.1 percentage point reduction in declines on the month.

However, prices continued to decrease from the previous year, with a 0.5% fall compared to January last year, indicating a 0.4 percentage point increase in declines.

The numbers followed a period of significant downturn for China's property market, which saw its most substantial declines in new home prices in nearly nine years towards the end of 2023.

“We believe the crux of the problem remains to be weak confidence amongst prospective home buyers,” said Pantheon Macroeconomics chief China economist Kelvin Lam.

“It is unsurprising given poor job prospects and sluggish income growth, with the economic downturn showing no apparent signs of a let-up.”

Lam noted that the government had devised policies targeting part of the problem, particularly on developer funding so they had the financial means to complete existing projects.

“Local governments are beginning to take charge of arranging funds from policy banks to complete ‘white-listed’ property projects, with the creation of property financing coordination mechanisms nationwide since the start of the year.”

In New Zealand, retail sales sustained a downward trend, registering a decline for the eighth consecutive quarter, according to official data from Stats NZ.

The total volume of retail sales in the December quarter dropped 1.9%, with year-on-year retail sales contracting by 4.1%.

Most industries experienced a decrease in retail activity during the December quarter, with notable declines in motor vehicle and parts retailing, down 2.5%; food and beverage services, down 2.4%; and fuel retailing, down 3.6%.

The pharmaceutical and other store-based retailing industry was the only exception, seeing a slight increase in retail activity, up by 0.3%.

Finally on data, Singapore's consumer prices in January showed a sluggish increase, recording its slowest pace in over two years, aided by declining fuel and housing costs.

Data indicated that the consumer price index (CPI) rose 2.9% in the city-state, marking its slowest rise since September 2021.

The core CPI, which excludes accommodation and private transport prices, increased 3.1% year-on-year in January, falling below economists' expectations.

Notably, recreational spending moderated to a 3.3% month-over-month increase, signalling consumer belt-tightening in response to higher goods and services taxes and the Monetary Authority of Singapore's maintenance of tight financial conditions.

Reporting by Josh White for Sharecast.com.