But gains were largely pared as softer-than-expected Chinese economic data underscored investors' concerns over slowdown in China. China's Jan-Feb industrial output growth came in below forecasts for the combined January/February period, with retail sales and fixed-asset investment also weaker than expected, stoking worries growth could fall as Beijing pushes for economic reforms.
National Bureau of Statistics of China said on Thursday that factory production rose 8.6% in the January-February period from a year earlier. Retail sales advanced 11.8%, while fixed-asset investment excluding rural households was up 17.9%. The Thursday data releases confirm that the slowdown seen at the end of 2013 has extended into this year and suggest it is deepening.
Investors were braced for weak data readings following disappointing PMI readings and February's dismal trade report, but the market's strikingly negative response Thursday afternoon to these NBS readings underscore the extent of the disappointment and concern about Chinese economic momentum.
Among Asian bourses, Australian stock market recovered modestly today as investors chased for value buying, following steep selloff in the prior day, and on strong local employment data, with mining counter leading the rally. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each were adding 0.5% to finish at 5412.6 and 5429.1, respectively.
Material was the best-performing sector, up 1.9%, as the base metal prices rose up to 0.6% on the London Metal Exchange on Wednesday with copper and nickel leading the gains. Resources giant BHP Billiton added 1.1% to A$36.40, while Rio Tinto, Australia's biggest iron ore miner, rose 2.7% to A$63.07 and third force in iron ore, Fortescue Metals Group, added 3% to A$5.12.
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Shares in rare earths miner Lynas (LYC) continued to ease after the steeper than expected loss announced earlier in the week. The stock closed 2% down at A$0.24.
Australia's gold producers also surged sharply as the precious metal spot price to a six-month high, up by US$23.80 an ounce or 1.8% to US$1,370.50 per ounce. Australia's biggest gold producer Newcrest Mining gained 3.1% to A$12.35, while Kingsgate Consolidated added 4.7% to A$1.335 and Perseus Mining 7.8% to A$0.485.
Scandal-plagued engineering and construction firm Leighton Holdings fell 1.5% to A$21.90 after the chief executive and chief financial officer stepped down as part of a deal with majority shareholder Hochtief to raise its takeover bid to A$1.25 billion.
Australian Bureau of Statistics data showed the seasonally adjusted jobless rate held steady at 6% last month. The country added 80,500 fulltime jobs in February from January, with the number of people employed rising by 47,300 overall.
In Japan, Japanese stock market finished tad lower as soft Chinese data and yen appreciation against the greenback were erasing early gains made after upbeat Japanese machinery orders. The benchmark Nikkei-225 index declined 0.1% to 14815.98, while the Topix index of all first-section shares fell 0.29% at 1203.46.
Japanese exporters and shares sensitive to trade with China posted a minor loss amid worse-than-expected Chinese economic data. Honda Motor lost 1.2% and NEC Corp 2.8%. Toyota Motor Corp, the world's biggest carmaker, slid 0.1%. Among stocks tied more directly to China trade also fell, with shippers Mitsui & Co. off 3.0% and Nippon Yusen down 2.6%.
The Cabinet Office said on Thursday that Japan core private-sector machinery orders jumped 13.4% on the month in January, largely offsetting the 15.7% slump in December. Orders from manufacturers rose 13.4% % in January (vs. -17.3% in December).
In China, key benchmark indices of the Mainland China stock market surged on the back of bargain buying across the board, with blue chips of retailers, consumer goods, financials, realty, and utilities companies were leading the rally.
The Shanghai Composite Index, which tracks both A and B shares, advanced 21.42 points, or 1.07%, to 2019.11. The Shenzhen Composite Index, which covers the smaller mainland exchange, added 15.56 points, or 1.46%, to finish at 1078.35.
Shares of Chinese financials and realty companies rose amid speculation the securities regulator will allow listed companies to sell preferred shares for the first time. Agricultural Bank of China Ltd. and Shanghai Pudong Development Bank (600000) Co. surged more than 3% on media reports that banks may be the first batch of companies to take part in a preferred-stock trial.
Liquor maker Kweichow Moutai Co. rallied 4% after Shenyin & Wanguo Securities Co. targeted a stock price that's more than 20% above current levels.
National Bureau of Statistics said on Thursday that China's industrial output rose 8.6% in the first two months of 2014 from a year earlier. Fixed-asset investment, an important driver of economic activity, was up 17.9% in the first two months from the same period last year. Growth in retail sales was 11.8% in January and February compared to the year-ago period. The statistics bureau released combined data for January and February in a bid to reduce distortions seen in single-month data caused by the timing of the Lunar New Year holidays, when factories, offices and shops often close for long periods.
In Hong Kong, HK share market closed weaker for second consecutive day in volatile trade, amid mounting concern about the outlook for the China economy after reports showed growth in China's industrial output, fixed asset investment and retail sales were weaker than market estimates. The Hang Seng Index ended down 145 points to 21,756.
Among the HK 50 blue chips, 16 rose and 31 fell, with two stocks remaining unchanged. Hutchison Whampoa (00013) was top blue-chip winner, rising 2.8% to HK$109 after announcing its retail arm AS Watson has launched online shopping app. COLI (00688) slide 4% to HK$18.8 on lower-than-expected core earnings for 2013.
Chinese developers listed in HK exchange were down after government data released today showed mainland home sales fell 5% in the first two months of the year to 598.5 billion yuan ($97.5 billion) from the year-earlier period. China Resources Land slid 3.3% to HK$15.70. Country Garden Holdings Co. tumbled 11% to HK$3.56 after its shares were downgraded at UBS AG and China International Capital Corp.
China Overseas Land dropped 4.1% to HK$18.80 after announcing weaker than expected annual profit for CY2013. The realty developer said in a Hong Kong bourse filing that its profit excluding revaluations, or core profit, increased 20% from 2012 to HK$19 billion ($2.45 billion).
In India, Indian stock market closed weaker after wiping out intraday gains in the last hour of trade on the back of sustained profit-booking at technology, pharmaceuticals and realty counters. The 30-share index ended the day at 21,774.61, down 81.61 points, or 0.37%. The BSE Sensex touched intraday high of 21,991.36 and a low of 21,720.13 in trade today.
Shares of Infosys dropped 8.5% after the company hinted it might report full-year sales "to be near the lower end" of its guidance.
Shares of Sun Pharmaceutical Industries fell 5% on news of a US FDA import alert over its Karkhadi unit in Gujarat.
The index of Indian industrial production for the month of January stood at 0.1%, highest since September 23, while the consumer price index (CPI) inflation for Februay slowed down to a 25-month low at 8.10%, as per government reports.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index added 0.1%. South Korea's KOSPI index rose 0.73%. New Zealand's NZX50 added 0.3%. Indonesia's Jakarta Composite Index rose 0.89%. Malaysia's KLSE Composite edged up 0.01%. Singapore's Straits Times index fell 0.52%.
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