Asia Report: Mixed Markets, China’s Industrial Profit Growth Slows
Asian markets ended Thursday in a mixed state, as investors digested the latest industrial profit data from China.
In Japan, the Nikkei 225 was down 0.33% to 28,549.01, as the yen weakened 0.02% against the dollar to last trading at 109.17 JPY.
Among the major components of the benchmark, robotics specialist Fanuc was down 1.34%, owner of Uniqlo Fast retail was 0.06%, and SoftBank Group fell 2.2%.
The largest Topix The index ended the session 0.5% weaker by the close in Tokyo at 1,911.02.
On the continent, the Shanghai Composite was up 0.43% to 3,608.85, and the smallest, tech-heavy Shenzhen Composite was 0.79% firmer at 2399.27.
New data from Beijing showed the People’s Republic’s industrial profits were up 57% year-over-year in April, slowing from the 92.3% surge in March.
Macroeconomics of the Pantheon Most of the slowdown, according to Freya Beamish, Asia’s chief economy, was due to unfavorable base effects, with adjusted profits still increasing month-over-month, albeit at a slower pace than March.
“The blackouts reveal, however, that mining has been the star, with monthly increases in manufacturing profits slowing to their slowest recovery pace since the pandemic struck in the first quarter of last year,” said Beamish.
“At the same time, manufacturing sales barely increased m / m, implying that gains were made from lower costs.”
She noted that the continued rise in input prices suggested a weakening of labor compensation.
“Going forward, further gains in PPI inflation will help maintain profit margins, for now, while the US stimulus should also boost sales, although labor cost trends should also remain firm. “
South Korea Kospi slipped 0.09% to 3,165.51, while the Hang Seng Index in Hong Kong was down 0.18% to 29,113.20.
Chinese smartphone giant Xiaomi was up 3.2% in the special administrative region, after the company reported 55% year-on-year revenue growth in the first quarter.
Seoul’s blue-chip tech stocks were mixed, with Samsung electronics down 0.25% and SK Hynix up 2.03%.
Oil prices were lower as the region went down, with Brent falling 0.73% to $ 68.37 and West Texas Intermediate losing 0.76% to $ 65.71 a barrel.
In Australia, the S & P / ASX 200 eked gains of 0.03% at 7,094.90, while in the Tasman Sea, New Zealand S & P / NZX 50 was 0.84% lower at 12,243.34.
Both sub-dollar declines were stronger against the greenback, with the Aussie ahead 0.02% to AUD 1.2912 and the Kiwi strengthening 0.28% to NZD 1.3695.