Asian Shares Fall After China Data
May 05 2016 - 12:40AM
Dow Jones News
Trading in Asia was lackluster Thursday, as investors grew more
wary about a multiweek stock rally that is rapidly losing
steam.
Hong Kong's Hang Seng Index was down 0.5%, while the Shanghai
Composite Index was down 0.3%. Australia's S&P/ASX 200 was
roughly flat.
A few markets in the region were closed for holidays, including
South Korea and Japan, making for a quiet day of trading.
Investors were mostly focused on data showing that Chinese
services activity expanded in April, albeit at a slower pace than
in March. The Caixin China services purchasing managers index
slipped to 51.8 in April from 52.2 in March. A reading above 50
indicates an expansion.
Stocks in Hong Kong pared losses after the release of the PMI
data and the Australian dollar edged up against the U.S.
dollar.
Still, "it will be a concern that despite a large injection of
liquidity [by Chinese authorities], the service sector isn't
booming," said Andrew Sullivan, managing director at brokerage
Haitong International in Hong Kong.
Analysts said that Beijing will be expected to keep implementing
moderate stimulus given the economy still faces relatively strong
downward pressure.
Meanwhile, energy shares in the region were mixed.
In Australia, shares of BHP Billiton continued to fall—a 2.8%
loss on top of Wednesday's 9.4% drop. BHP, Vale and their Samarco
Mineraç ã o joint venture face a 155 billion real (US$43.68
billion) claim by Brazilian federal prosecutors for liabilities
stemming from a dam disaster last year.
Still, the energy sector was up 1% on the S&P/ASX 200,
broadly bouncing back from steep losses on Wednesday.
Investors in Australia also factored in data showing that the
country's trade deficit narrowed to 2.16 billion Australian dollars
(US$1.61 billion) in March, compared with a deficit of A$3.04
billion in February. The value of exports rose 4% in March from
February, while the value of imports rose 1% in the same period.
Separately, Australian retail sales rose 0.4% in March from a month
earlier.
Shares of National Australia Bank were up 2.8% after the firm
reported earnings for the first half of the year that were broadly
in line with analysts' expectations. The bank reported a net loss
of A$1.74 billion in the six months through March from a profit of
A$3.44 billion a year earlier amid its exit from the U.K. banking
business.
Dominique Fong, James Glynn and Robb M. Stewart contributed to
this article.
Write to Chao Deng at Chao.Deng@wsj.com
(END) Dow Jones Newswires
May 05, 2016 00:25 ET (04:25 GMT)
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