Asian shares mixed at start of new year

Investors look at computer screens showing stock information at a brokerage house in Shanghai yesterday. China shares fell during the first trading session of the year yesterday, dragging down Hong Kong stocks, as investors worried about slower economic growth after China’s December factory activity fell to its lowest in three months.

AFP/Tokyo

Asian share markets began the new year mixed yesterday, with another record-breaking close on Wall Street offset by a slowdown in Chinese manufacturing growth.

Trading across the region was quiet after the break. The dollar held on to its recent gains against the yen, sitting just below five-year highs.

Sydney added 0.29%, or 15.7 points, to 5,367.9 while Seoul tumbled 2.20%, or 44.15 points, to close at 1,967.19.

Shanghai lost 0.31%, or 6.59 points, to 2,109.39 and Hong Kong added 0.14%, or 33.66 points, to 23,340.05.

Bangkok shares saw a steep fall, plunging 5.23% or 67.94 points to 1,230.77 as worries mounted about the country’s political crisis following weeks of anti-government protests.

Tokyo and Wellington were closed for public holidays.

On Wednesday Beijing’s official purchasing managers’ index (PMI) for December came in at 51.0, down from November’s 51.4 and below the median 51.2 forecast of eight economists. Anything above 50 points to growth while a figure below indicates contraction.

It marked the 15th straight month of growth but it is the first time since June that the figure has dipped from the previous month.  And yesterday HSBC said its China PMI dipped to 50.5 last month from 50.8 in November.

The results raised concerns about the state of the world’s number two economy – which is a key driver of regional and global growth – with analysts fearing it has slowed in recent months despite a pick-up in the middle of the year.

Shanghai stocks have also been hit by worries over a possible share glut and a liquidity crisis as Chinese initial public offerings restarted from yesterday after a year-long ban.

On currency markets, the dollar sat at 105.33 yen in Asian trade, against 105.33 yen in New York on Tuesday. Earlier this week the greenback hit 105.41 yen, its highest since October 2008.

The euro bought $1.3722 compared with $1.3753 while it was at 144.56 yen from 144.89 yen.

Oil prices rose. New York’s main contract, West Texas Intermediate for February delivery, was up 29 cents at $98.71 in afternoon trade. Brent North Sea crude for February rose 29 cents to $111.09.

Gold fetched $1,220.70 at 1040 GMT compared with $1,198.89 late Tuesday.

In other markets,  Jakarta rose 1.24%, or 53.09 points, to 4,327.26, Kuala Lumpur fell 0.75%, or 14.01 points, to 1,852.95, Manila closed 1.60% higher, adding 94.43 points to 5,984.26, Singapore added 0.23%, or 7.22 points, to 3,174.65 and Taipei ended flat, edging up 1.03 points to 8,612.54.