Asia: Stocks mixed after Chinese PMIs
Asian stocks were mixed on Monday after the release of Chinese manufacturing data.
HSBC’s Chinese manufacturing purchasing managers’ index (PMI) was confirmed at 50.4 in October, as expected. A reading above 50 signals expansion.
However, the official government manufacturing PMI unexpectedly declined from 51.1 to a five-month low of 50.8. China’s official non-manufacturing PMI also fell to 53.8 in October from 54 a month earlier.
The world’s second-largest economy grew 7.3% in the third quarter, the weakest pace in more than five years.
“Although the PMIs diverged in October, the breakdown of both is consistent with cooling domestic demand and a further slowdown in growth going into the fourth quarter,” said Capital Economics.
Hong Kong’s Hang Seng index fell 0.34% while the Shanghai composite rose 0.41%.
Japan’s Nikkei 225 gained 4.83%, as the yen weakened to help exporters.
Japanese shares jumped last week after the Bank of Japan unexpectedly boosted stimulus.
In company news, Fraser & Neave declined after a court ruled that its Myanmar partner has the right to buy its stake in a joint-venture brewery.
Hyundai Motor Co. dropped as one of its biggest investors pushed the automaker to improve corporate governance after a real estate purchase for three times the property’s assessed value prompted a retreat in the stock.