Investor's confidence over world's second largest economy underpinned after data released after market hour on August 9, showing new yuan loans topped estimates in July and money supply unexpectedly accelerated, even as aggregate financing declined amid a government crackdown on shadow banking. Meanwhile, reports last week also showed a recovery in exports and industrial production, following a two-quarter slowdown in the biggest emerging economy.
Tokyo stocks fell down today, with the Nikkei Stock Average sliding 95.76 points, or 0.70%, to end the day at 13,519.43, as slower-than-expected economic growth and on cautions over the sales tax hike plan weighed on investors sentiments. However, move on the downside was limited due to weakening of yen against the greenback.
The Nikkei got off to a weak start, slipping 1.14% at the open as Tokyo published Japan's latest quarterly economic growth figures. The price-adjusted gross domestic product for the quarter ended June did not rise as much as many market analysts were expecting. Disheartened investors responded by selling. The Cabinet Office reported Japan, world's third-largest economy, expanded 0.6% for the three months to June from the previous quarter, slower than a revised 0.9% rise in the January-March period
The Nikkei temporarily recovered in midday trade as the yen weakened, but ended in negative territory with questions swirling about whether Prime Minister Shinzo Abe would go ahead with a planned sales tax hike in the face of an uncertain recovery. Some fear the rate hikes, aimed at paying down Japan's huge national debt, would stall Abe's bid to stoke the world's third-largest economy. The slower growth could make it more problematic for Prime Minister Shinzo Abe to carry out plans to raise sales tax by 3 percentage points in April to improve public finances. The tax is now 5 percent.
The dollar bought 96.48 yen, strengthening from 96.24 yen in New York on Friday and 96.05 yen after the GDP data were published Monday.
Australian stock market climbed up sharply, with shares of bullion, metal and retailer stocks leading gainers on stronger commodity prices and better than expected corporate earnings. The benchmark S&P/ASX200 index advanced 53.50 points, or 1.06%, to 5108.70, while All Ordinaries Index jumped 55.30 points, or 1.1%, to 5094.10.
Shares of diversified miners BHP Billiton rose 2.4% to A$36.81 and Rio Tinto 2.6% to A$61.83. Fortescue Metals Group added 7.5% to A$4.31. Gold company Newcrest Mining rose 7.9% to A$12.39 though writedowns led the gold producer to swing to an annual net loss of A$5.78 billion
David Jones (DJS) shares rose 5% to A$2.74 on reports the group had offloaded its worst performing business to Dick Smith Electronics. From October 1 the electronics sections of David Jones department stores will be run by Dick Smith and rebranded as David Jones Electronics Powered By Dick Smith.
China stock market surged on the back of better than expected economic data and amid hopes Beijing would step in to support the economy. The Shanghai Composite added 2.4%, its biggest percentage gain since June 19.
The advance in the Chinese market came after data released last week showed a better-than-expected improvement in China's trade indicators and in monthly industrial output. Meanwhile, other media reports released on Monday indicated that Beijing was quietly offering financial stimulus to key cities and provinces to support the local economies.
Shares of construction-related stocks soared in Shanghai on optimism developers will be allowed to raise funds again after regulator posted a statement on website on August 9 that the China Securities Regulatory Commission will make decisions on financing for real estate projects based on examinations of the company and opinions of the Ministry of Land and Resources. Shares of Anhui Conch Cement Co. jumped 4.6%, and property developer Gemdale Corp rose 4.4%.
The China Association of Automobile Manufacturers said on Friday that sales of passenger vehicles in China rose 10.5% in July as automakers increased production and dealerships offered discounts to clear inventory. Wholesale deliveries of cars, multipurpose and sport utility vehicles climbed to 1.24 million units last month
HK stocks closed sharply higher on Monday in heavy trade, boosted by the Shanghai index with shares of financials and developers were leading the charge. The Hang Seng Index ended up 463 points to 22,271, off an intra-day low of 21,735 and high of 22,283.
Among the 50 HK blue chips, 47 rose and three fell. Citic Pacific jumped 5.2% to HK$9.15, while Hengan slipped 1.2% to HK$87.05, making themselves the biggest blue-chip loser and winner.
Indian stock market closed modest higher after paring intraday gains as European stocks dropped and as trading in US index futures indicated a lower opening of US stocks later in the global day. The S&P BSE Sensex provisionally settled below the psychological 19,000 mark, after regaining that level in intraday trade. The Sensex was provisionally up 110.79 points or 0.59%, off 166.84 points from the day's high and up 104.12 points from the day's low.
Indian index heavyweight Reliance Industries (RIL) extended intraday losses in late trade. Index heavyweight and cigarette major ITC edged higher after a foreign brokerage upgraded the stock to overweight from neutral, citing prospects of earnings growth resilience. Britannia Industries scaled record high after declaring strong Q1 result. Marico rose after declaring good Q1 result during trading hours today, 12 August 2013.
Elsewhere, Taiwan's Taiex Index climbed 0.6%, while South Korea's Kospi increased 0.2%. New Zealand's NZX 50 Index fell 0.3%. Singapore's Straits Times Index gained 0.1% and Malaysia's KLSE Composite rose 0.3%. Indonesia's Jakarta Composite Index declined 0.9% as it resumed trading after a week-long holiday. Thai markets were closed for a holiday.
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