Asian markets were mixed on Monday, with Tokyo hit by profit-taking and a stronger yen, while Hong Kong and Shanghai rose in response to upbeat Chinese manufacturing data.
However, traders in China were digesting the possibility for a flood of new listings after authorities on Saturday indicated that initial public offerings could resume after a hiatus of more than a year.
Tokyo eased 0.12 percent by the break, Sydney slipped 0.80 percent, Seoul lost 0.21 percent, but Hong Kong was up 0.58 percent and Shanghai climbed 0.10 percent.
There was little influence from Wall Street, which was closed on Thursday and half of Friday for the Thanksgiving holiday. The Dow and S&P 500 were flat while the Nasdaq rose 0.37 percent.
HSBC said Monday that its index of manufacturing activity in China came in above forecasts for November, providing hope that the recent pick-up in the economy can be sustained.
The banking giant said its purchasing managers’ index (PMI) sat at 50.8 last month, and while it is down from 50.9 in October it is much better than the 50.4 initially estimated on November 21.
Anything above 50 is considered growth and anything below indicates contraction.
The data comes a day after China’s own official index came in at 51.4 for November, unchanged from October. It was up from 51.1 in September and the highest since reaching 53.3 in April 2012.
The positive sentiment fuelled by the PMIs was offset by expectations China will soon lift a 13-month ban on initial public offerings, which investors fear could dilute the market.
Beijing at the weekend unveiled guidelines on changes to the way companies list as well as new rules that allow those already listed on the stock market to find new ways to raise cash.
The overhaul blueprint suggests an imminent restart of the country’s IPO market, where more than 760 firms are queuing for listings. The China Securities Regulatory Commission, which issued the guidelines, said companies might begin listing as soon as January.
Japan’s Nikkei fell for a second straight session after closing on Thursday at a near six-year high. The index saw further selling pressure as investors cashed in profits while the yen edged up against the dollar.
In early trade the dollar fetched 102.30 yen, against 102.42 yen in New York Friday.
The euro bought $1.3585 and 139.22 yen compared with $1.3590 and 139.18 yen.
On oil markets New York’s main contract, West Texas Intermediate for January delivery, was up 39 cents at $93.11 in early Asian trading while Brent North Sea crude for January gained 57 cents to $110.26.
Gold fetched $1,248.00 per ounce at 0245 GMT compared with $1,245.50 on Friday.
Source: AFP
