By Laura He and Michael Kitchen, MarketWatch
HONG KONG (MarketWatch) -- Asian stocks were mostly higher on
Friday, as markets awaited the U.S. jobs report for April due out
later in the day.
Hong Kong' markets were boosted by a rebound in casinos and tech
shares, with the Hang Seng Index settling 0.6% higher. Australia's
benchmark S&P/ASX 200 index edged up 0.2%, as major banks
mostly traded higher. As for mainland Chinese markets, they were
scheduled to resume trading on Monday after a three-day
holiday.
Japanese shares, however, slightly dropped after posting gains
in the previous session. The Nikkei Average index ended down 0.2%
and the Topix index closed flat. The yen (USDJPY) weakened against
the greenback and traded at Yen102.46, up from Yen102.29 on
Thursday.
Later Friday, investors will assess April jobs figures from the
U.S., the world's largest economy. Economists polled by MarketWatch
expect a net increase of 215,000 in April, which would mark the
biggest rise since a 274,000 gain in November. The unemployment
rate is projected to fall to 6.6% from down to 6.7%.
Among the major movers, Sony Corp. (SNE) fell 0.6% in Tokyo
after issuing its third profit warning in six months, while Fujitsu
extended gains by 3.3% following a 6.3% rally on Thursday, after it
returned to profit for the fiscal year to March 2014.
In Hong Kong, Chinese Internet giant Tencent Holdings (0700.HK)
bounced back 2.5% after heavy losses in the previous session, while
another index heavyweight China Mobile (CHL) lost 0.8% on concerns
about China's tax reform. Among casino operators, Wynn Macau
(WYNMY) jumped 4.1%, Galaxy Entertainment Group climbed 3%, and MGM
China Holdings (2282.HK) moved up 1.1%.
In Australia, top investment bank Macquarie Group advanced 0.9%,
Australia and New Zealand Banking Group rose 0.8%, and Commonwealth
Bank of Australia was higher by 0.6%.
Japan consumer spending surges, but whatever...
An as-expected print for Japanese unemployment and a
more-than-expected surge in household spending proved powerless to
move the yen, with investors more focused on what next month's
numbers will show.
The Finance Ministry reported that the March jobless rate was
3.6%, unchanged from February's level and matching the median
forecast from a Wall Street Journal survey of economists.
Spending was more of a surprise, with consumption by households
of two or more people jumping by 7.2% in March from a year earlier,
after its 2.5% drop the previous month.
This was well ahead of the Wall Street Journal survey's
projected rise of 1.8%, and largely reflects people rushing to make
purchases ahead of the April 1 increase in the national sales tax,
to 8% from 5%.
The key, several economists have said recently, will be how much
the number drops off in the April result, reflecting the drag from
the tax hike.
The yen (USDJPY) showed little reaction following Friday's data,
with the dollar holding tight at Yen102.30 immediately after the
release, though 10 minutes later, the U.S. currency had eased to
Yen102.28.
But market's muted moves may be mostly a function of investor
caution ahead of the ever-so-closely-watched U.S. employment data,
due out at 8:30 a.m. U.S. Eastern time.
Sony warns of bigger annual loss on PC exit costs
Sony Corp. said Thursday it faces a bigger loss for the
just-ended business year than previously expected, and slashed its
operating profit outlook by two-thirds due to the costs of getting
out of the money-losing personal computer business.
Analysts said Sony's third outlook cut in six months could drive
away even the loyalists still believing in its promise to turn
around its flagging consumer electronics business. The grim
forecast also stands out from Japanese rivals in the electronics
industry such as Panasonic Corp. and Fujitsu Ltd., which are
returning to profit after withdrawing from unprofitable business
areas.
"It is another major letdown," said Tomoichiro Kubota, a senior
market analyst at online brokerage Matsui Securities Co. "The
contrast is stark with Sony anticipating a bigger loss while other
companies are starting to enjoy the fruits of their restructuring
measures," he said.
Read full story here.
What's up next week in Asia...
Here's a look at some of next week's important events in
Asia:
Monday: China HSBC manufacturing PMI; Japan and South Korea
closed for holiday
Tuesday: Reserve Bank of Australia policy decision; Japan, Hong
Kong and South Korea closed for holiday
Wednesday: Softbank earnings results
Thursday: China April trade data, Toyota Motor earnings,
Australia April unemployment
Friday: China April consumer and wholesale price data
Bank of America: Yes, China still matters
True, China's trade account has been shrinking recently, and
true, it's economy has slowed compared to its growth in years past,
but as a new chart from Bank of America notes, it's presence on the
world economic stage hasn't dimmed.
Specifically, the chart shows how, even amid a pullback in
Chinese imports, the number of nations counting China as their top
export market has been growing each and every year since 2008, and
is well higher than at the start of the millennium.
On the other hand, the chart (based on IMF data) shows 36
countries for which China is currently the top destination for
exports -- a small number compared to the nearly 200 nations on
earth. But, Bank of America says, the list does include some major
players. See the full story here.
Macquarie profit jumps as markets brighten
Macquarie Group Ltd. (MCQEF) , Australia's largest investment
bank, said annual profit topped 1 billion Australian dollars
(US$927 million) for the first time in four years as a shift into
lower-risk businesses started to pay off.
However, it said it only expected earnings in the year ahead to
be broadly in line with the just-ended fiscal year, despite
anticipated growth in its banking, securities and capital
divisions.
Net profit jumped 49% to A$1.27 billion in the 12 months through
March from A$851 million a year earlier, the Sydney-based company
said in a regulatory filing Friday. The result was slightly ahead
of the up-to-45% increase forecast by Macquarie in late March, and
the A$1.23 billion average of six analyst forecasts compiled by The
Wall Street Journal.
Read the full story here.
Chinese official squanders millions on fengshui
Many Chinese officials and businesspeople believe in fengshui,
the ancient art of positioning of buildings and objects in order to
bring good fortune. But sometimes, fengshui is a double-edged
sword.
A top Chinese official was fired from office this week, partly
because he spent millions of dollars on fengshui, including seeking
advice from and hiring fengshui experts to help him solve problems
involving public investment projects. He even reportedly paid to
have his father's grave moved (In fengshui, the site and structures
of one's tomb is believed to have a major impact on the fates of
the deceased's family members.)
Li Chuncheng, the former vice party chief of China's western
Sichuan province, was sacked due to "serious violations of laws and
party discipline," including accepting large bribes and misusing
government funds on "feudal superstitious activities," according to
an announcement issued earlier this week by China's top corruption
watchdog.
Caixin Magazine reported earlier that Li had spent tens of
millions of yuan to have the fengshui experts move his father's
grave to Dujiangyan, a famous cultural city located in the
province. He also hired Taoist priests to practice magic and
"exorcise" a failing investment project in Sichuan's capital
Chengdu, according to the Shanghai-based China Business News
newspaper.
Apparently, these acts didn't help him.
(Portions of this article are based on material from
MarketWatch's Asia Stocks live blog.)
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