The HSBC China PMI manufacturing was revised down to 48.1 in April from a preliminary reading of 48.3. It was, however, higher than March's 48. Numbers below 50 indicate contractions. The results of the HSBC purchasing managers' index on Chinese factory activity were lower than a preliminary reading, stoking fears among investors that the slowdown in the world's second biggest economy is entrenched.
The confrontation between Ukrainian forces and pro-Russian separatists intensified over the weekend. Pro-Russian militants stormed a Ukrainian police station in Odessa on Sunday and freed nearly 70 fellow activists, two days after over 40 pro-Russian activists died in a blaze at a building they had occupied.
Russia warned Ukraine of catastrophic consequences unless it halted a military operation against pro-Russian secessionists. The crisis spread to the southern city of Odessa, where 38 people died in an arson attack against a trade union building after a day of violent clashes between pro-Russian and pro-Ukrainian militants.
Among Asian bourses, Australian share market eked out marginal gain, as gains in mining and energy stocks helped to offset losses in top banks and financials. The benchmark S&P/ASX200 and the broader All Ordinaries each jumped by 0.08%% to 5462.20 and 5443.40, respectively.
Australian shares lifted briefly at the start of trading despite a negative lead from the United States. But the local market quickly retreated as another record profit result from Westpac Banking Corporation was not enough to satisfy bank investors.
Financial sector was down 0.4%, becoming top loser in percentage term among ASX sectoral group, with Westpac Banking Corp was the biggest drag on shares, down 1.2% to A$34.45 after reporting first-half cash earnings growth of just 8% to A$3.77 billion in the face of tighter margins. The market had anticipated that Westpac would increase its net interest margin, which reflects the difference between its cost of borrowing and the rates at which it lends to customers. This measure however fell eight basis points to 2.1%. WBC lifted its fully-franked interim dividend to 90 cents, from 86 cents previously.
Among other banks, ANZ Banking Group declined 1.1% to A$33.97, Commonwealth Bank of Australia 0.3% to A$78.94 and National Australia Bank 1% to A$34.20. Second-tier rival to the big four Bendigo and Adelaide Bank entered a trading halt to announce it is planning a capital raising to fund the A$1.78 billion purchase of Rural Finance, a Victorian financial services company focused on clients in the agriculture industry. Shares, last priced at A$11.39 are expected to resume trading when the market opens on Tuesday.
Shares of materials and resources closed higher despite a disappointing survey of Chinese factory activity adding to fears of a slowdown in demand. Resources giant BHP Billiton rose 0.6% to $37.49, and main rival Rio Tinto added 1.1% to $61.65 as the spot price for iron ore, landed in China, rose 0.6% to $US106 a tonne. Port Headland Port Authority figures showed Australian iron ore exports to China rose by almost 7% in April, from March when they jumped 27%.
Aquila Resources shares spiked up 36.3% to $3.34 on the news junior coal and iron ore explorer has received a A$3.40 per share joint takeover bid from local rail haulage provider Aurizon and China's biggest steel producer Baosteel that valued the company at A$1.42 billion.
Gold miners were the best-performing sub-sector as the precious metal's spot price lifted to $1307.20 per ounce on increased geopolitical tensions. Australia's biggest gold producer, Newcrest Mining, gained 3.6% to A$10.49.
TD Securities-Melbourne Institute's monthly measure of consumer prices rose 0.4% in April, from March when it increased by 0.2%. That saw the annual pace tick up to 2.8%, and nearer the top of the Reserve Bank of Australia's (RBA) long-term target band of 2 to 3%.
The Australian Bureau of Statistics building approvals data showed that residential dwelling approvals eased by 3.5%, although the year-on-year growth remained strong at 20%.
In China, Mainland China share market finished the session marginally higher after recouping early losses, on reinforcing speculation that the government will take steps to bolster the economy, after a survey showed that Chinese manufacturing shrank more than initial prediction in April. The benchmark Shanghai Composite Index finished the session 1 points higher at 2027.35, after touching an intraday low of 2007.35. The Chinese markets were closed on last Thursday and Friday for national holiday.
Shares of technology and healthcare companies rose the most today in Shanghai market, on bargain hunting following steep recent losses. Shenzhen O-film Tech Co. locked 10% upper circuit at 23.32 yuan. Goertek Inc gained 2.9% to 28.60 yuan.
Shares of rail-related companies climbed up on reports China will raise its spending targets on railway infrastructure to 800 billion yuan (US$128 billion) in 2014. China Railway Corporation, the State-controlled commercial entity spun off from the Ministry of Railways in 2013, said during a conference call Friday that it has raised its annual spending target to 800 billion yuan for the year. China CNR gained 2.2% to 4.59 yuan. CSR Corp advanced 1.6% to 4.33 yuan.
Property developers shares declined after Centaline Group said in a latest report that new home sales fell 47% over the holidays to the lowest level in four years in 54 cities. Poly Real Estate Group Co fell 3.4% to 7.38 yuan and Gemdale Corp dropped 2.8% to 8.05 yuan.
In Hong Kong, shares in city's bourses suffered steep losses as risk aversion selloff across the board on tracking negative cues from Wall Street Friday and after a survey showed that Chinese manufacturing shrank more than first thought in April. The benchmark Hang Seng index was down 1.28% to 21976.33, while Hang Seng China Enterprises Index lost 0.6% to 9743.29.
Among the HK 50 blue chips, 44 fell and 5 rose while remaining one stock closed steady. China Merchants Holdings declined 3.5% to HK$23.45, contributing 3-points losses to the benchmark Index and becoming the worst-performing blue chip in percentage change term. China Unicom advanced 2.7% to HK$12, contributing 6-points gains to the benchmark Index and becoming the best-performing blue chip in percentage change term.
Shares of property developers declined heavily today in Hong Kong market, on a plunge in home sales. Chinese home prices rose at a slower pace in April, two private surveys showed Thursday, adding to signs of cooling in the country's property market. Prices of new homes in 288 major cities rose 6.9% in April compared with the same month a year earlier, easing from a rise of 8.1% in March, a poll by real estate services firm E-House China showed. That was the slowest rise in 14 months and marked the sixth consecutive month of slowing price rises. A separate survey by China Real Estate Index System (CREIS) showed average prices in the 100 biggest cities rose 0.1% month on month in April, versus March's 0.4% rise, still the 23rd straight month of gains. Compared with a year earlier, home prices rose 9.1% in April, moderating from a 10% gain in March and marking the fourth consecutive month of slowing year-on-year gains, CREIS said.
Among developers, Sino Land declined 1.7% to HK$11.28, Cheung Kong 2.5% to HK$123.60, Henderson Land 1.1% to HK$46.65, SHK Properties 1.1% to HK$96.95 and Hang Lung Properties 1.1% to HK$22.95. China Overseas Land & Investment dropped 1.7% to HK$18.58 and China Resources Land 1.6% to HK$15.60.
In India, key benchmark indices edged higher on first trading day of the week today, after data showed that foreign funds remained net buyers of Indian stocks on Friday, 2 May 2014 offset weakness in European stocks and lower US index futures. The S&P BSE Sensex was up 41.23 points or 0.18% to 22,445.12, its highest closing level since 29 April 2014. The CNX Nifty was up 4.55 points or 0.07% to 6,699.35, its highest closing level since 29 April 2014.
Indraprastha Gas rose 2.15% on reports the company on Friday, 5 May 2014, raised prices of CNG and PNG, citing rise in input costs.
Ashok Leyland was flat after the company reported weak sales in April. The company reported 21% decline in total sales to 5,897 units in April 2014 over April 2013. Total sales of medium and heavy commercial vehicle (M&HCV) fell 14% to 4,523 units in April 2014 over April 2013. Total sales of light commercial vehicles (LCV) declined 39% to 1,374 units in April 2014 over April 2013.
Canara Bank jumped 6.49% as the bank's gross non-performing assets to gross advances declined to Rs 7570.21 crore as on 31 March 2014, from Rs 8073.92 crore as on 31 December 2013. Canara Bank's gross non-performing assets (NPAs) to gross advances declined to Rs 7570.21 crore as on 31 March 2014, from Rs 8073.92 crore as on 31 December 2013 but increased from Rs 6260.16 crore as on 31 March 2013. The ratio of gross NPAs to gross advances stood at 2.49% as on 31 March 2014 as against 2.79% as on 31 December 2013 and 2.57% as on 31 March 2013.
NMDC declined 1.87%. The company said during market hours that company's production on provisional basis remained unchanged at 2.44 million tonnes in April 2014 over April 2013.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 fell 0.62%. Malaysia's KLSE Composite fell 0.46%. Straits Times index dropped 0.34%. Taiwan's Taiex index was up 0.04%. Indonesia's Jakarta Composite Index rose 0.08%. Markets in Japan and South Korea were closed for the Children's Day holiday.
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