Asian shares mixed at start of 2014

Agence France-Presse

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Philippines shares are up 1.6% on the first trading day of the new year

MIXED. Some Asian shares were up, and others were down at the first trading day of 2014 following a record-breaking close at Wall Street. AFP PHOTO

HONG KONG – Asian share markets began the new year mixed on Thursday, January 2 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 5-year highs.

Sydney added 0.29%, or 15.7 points, to 5,367.9 while Seoul tumbled 2.2%, 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 had eased 0.13% in the afternoon.

Taipei ended flat, edging up 1.03 points to 8,612.54, and Manila gained 1.6% to 5,984.26.

Tokyo and Wellington were closed for public holidays.

US shares gave a positive lead going into 2014, with investors in New York upbeat after a series of strong data indicating the world’s top economy is getting back up to speed.

The Dow added 0.44% and the S&P 500 gained 0.4% in Tuesday trade – both new records – while the Nasdaq rose 0.54% to hit its high for the year.

The Dow gained 26.5% in 2013 – its best percentage rise in more than 15 years – while the S&P 500 advanced 29.6%, marking its strongest jump since 1997.

However, while the performance in New York provided a catalyst for buying, figures showing that factory activity in China had slowed weighed on sentiment.

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 by The Wall Street Journal. 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 on Thursday 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 restart from Thursday after a year-long ban.

On currency markets, the dollar sat at 105.31 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 $1.3752 compared with $1.3753 while it was at 144.81 yen from 144.89 yen.

Oil prices rose. New York’s main contract, West Texas Intermediate for February delivery, was up 37 cents at $98.79 in mid-morning trade. Brent North Sea crude for February rose 43 cents to $111.23.

Gold fetched $1,225.30 at 0700 GMT compared with $1,198.89 late Tuesday. – Rappler.com

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