Asia report: Stocks mixed as GDP growth slows in Korea

Stocks were mixed in Asia at the end of Thursday, as investors mulled fresh data including slowing economic growth in South Korea.

In Japan, the Nikkei 225 was down 0.32% at 27,345.24, as the yen strengthened 0.04% against the dollar to last trade at JPY 146.31.

Robotics specialist Fanuc was up 0.34%, Uniqlo owner Fast Retailing added 0.89%, and tech investing giant SoftBank Group was 0.93% firmer.

The broader Topix index was 0.66% weaker by the end of trading in Tokyo, settling at 1,905.56.

On the mainland, the Shanghai Composite was down 0.55% at 2,982.90, and the technology-centric Shenzhen Component was off 0.63% at 10,750.14.

Industrial profits in China fell 2.3% year-on-year in the first nine months of the year, according to fresh data out of Beijing, accelerating slightly from the 2.1% fall in the year to August.

The National Bureau of Statistics said profits at manufacturing companies were particularly weak, falling 13.2% over the period.

“The poor global economic outlook will have a larger impact on private sector and foreign-invested firms, as they are more exposed to exports than state-owned enterprises,” said Duncan Wrigley at Pantheon Macroeconomics.

“We are also fairly pessimistic about domestic demand prospects, and expect a drawn-out property sector recovery and zero-Covid policy to remain in place until at least mid-2023.

“This means policy-supported sectors will continue as the bright spot in industrial profits.”

South Korea’s Kospi added 1.74% to 2,288.78, while the Hang Seng Index in Hong Kong managed gains of 0.72% to 15,427.94.

Fresh data out of Seoul showed Korea’s GDP rising 0.3% quarter-on-quarter in the three months through September, making for the slowest quarterly growth in a year.

That was down from the 0.7% growth reported for the June quarter.

On the year, meanwhile, GDP growth accelerated slightly to 3.1%, from the 2.9% recorded in the second quarter.

Korea’s blue-chip technology stocks were mixed, with SK Hynix tumbling 4.15%, while Samsung Electronics eked out gains of 0.17%.

The moves for Samsung came after the company recorded a 31.39% year-on-year plunge in third quarter profits, broadly in line with its previous estimate of a 32% fall.

Oil prices were firmer as the region went to bed, with Brent crude futures last up 0.17% on ICE at $95.85 per barrel, and West Texas Intermediate ahead 0.02% at $87.93 on NYMEX.

In Australia, the S&P/ASX 200 was 0.5% firmer at 6,845.10, while across the Tasman Sea, New Zealand’s S&P/NZX 50 advanced 0.49% to 11,100.52.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.54% at AUD 1.5475, and the Kiwi retreating 0.34% to NZD 1.7198.

Reporting by Josh White for Sharecast.com.