02/04/2015 04:26 AST
Asian markets mostly retreated yesterday following losses on Wall Street, with Tokyo also hurt by a disappointing reading of Japanese business confidence.
But Hong Kong and Shanghai climbed on figures showing a rebound in Chinese manufacturing activity.
After a strong performance for global equities this year, analysts have warned of a rocky road ahead in the near term, with Greece’s debt crisis still unresolved, volatility in oil prices and uncertainty over US interest rates.
Tokyo tumbled 0.90%, or 172.15 points, to finish at 19,034.84, Seoul closed 0.62% lower, giving back 12.58 points to end at 2,028.45 and Sydney fell 0.52% or 30.71 points to 5,860.8.
However, Shanghai surged 1.66%, or 62.39 points, to 3,810.29 – its highest close since March 17, 2008. And Hong Kong added 0.73%, or 181.86 points, to 25,082.75.
After an impressive three months that saw big gains in some markets – including a 10% rise in Tokyo and eight% in Sydney – investors took to the sidelines Wednesday as they keep track of various global events.
In other markets, Taipei fell 0.82%, or 78.78 points, to 9,507.66; Taiwan Semiconductor Manufacturing Co was 1.03% lower at Tw$144.0, while Fubon Financial Holding shed 1.25% to end at Tw$55.5.
Wellington was flat, edging up 1.60 points to 5,835.58; Contact Energy fell 1.34% to NZ$5.90 while Spark gained 3.02% to NZ$3.07.
Manila closed 0.51% higher, adding 40.56 points to 7,981.05; Globe Telecom rose 2.38% to 2,062 pesos and Megaworld Corp increased 1.66% to 5.52 pesos.
Kuala Lumpur dropped 0.24%, or 4.47 points, to close at 1,826.31; Public Bank fell 0.42% to 18.80 ringgit, Sime Darby fell 0.11% to 9.26 ringgit while Telekom Malaysia rose 0.96% to 7.34 ringgit.
Jakarta fell 0.94%, or 51.81 points, to 5,466.87; state miner Aneka Tambang rose 4.62% to 905 rupiah, while Indonesian-based automotive business Astra International fell 4.66% to 8,175 rupiah.
Singapore closed flat at 3,447.02; United Overseas Bank rose 0.22% to Sg$23.05 while agribusiness company Wilmar International fell 0.92% to Sg$3.23.
Bangkok rose 1.30%, or 19.64 points, to 1,525.58; supermarket operator Big C Supercenter gained 4.78% to 241baht, while Airports of Thailand rose 3.93% to 291baht.
“This is going to be a tougher quarter and you can expect higher volatility,” Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg News.
Close attention is being paid to Greece, where the anti-austerity government is trying to hammer out new terms for its multi billion-dollar bailout.
However, it is struggling to come up with proposals that will satisfy its creditors, chiefly paymaster Germany, and release much-needed cash to help it avoid a default and a likely exit from the eurozone.
In New York Tuesday the Dow sank 1.11%, the S&P 500 fell 0.88% and the Nasdaq dropped 0.94%. Adding to uncertainty yesterday was Japan’s closely watched Tankan survey of business confidence, which came in below expectations, highlighting the fragility in the world’s number three economy.
The survey of more than 10,000 companies – marking the difference between the percentage of firms that are optimistic and those that see conditions as unfavourable – is the most comprehensive indicator of how Japan is faring.
“The Tankan showed that firms, particularly manufacturers, are now acutely aware that overseas demand is softening,” said a report by SMBC Nikko Securities.
In forex trade the dollar slipped to ¥119.88 from ¥120.06 in New York, where it had been given a boost by positive US consumer confidence figures.
The euro bought $1.0753 and ¥129 compared with $1.0741 and ¥128.95. Hong Kong and Shanghai bucked the regional trend after China said its official Purchasing Managers’ Index came in at 50.1 last month, the first result since December above the 50-level that separates expansion and contraction.
AFP
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