By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks retreated Monday as
several financial and technology firms pulled back from strong
recent advances, while mainland Chinese shares edged higher after
data showing an improvement in services-sector activity in the
country.
The Nikkei Stock Average fell 1.4% in Tokyo, after rallying in
the previous two sessions, while Australia's S&P/ASX 200
slipped 0.1% and South Korea's Kospi eased 0.4%.
The losses came even as stocks on Wall Street shrugged off a
weaker-than-expected U.S. nonfarm payrolls data for July, lifting
the Dow Jones Industrial Average (DJI) and the Standard &
Poor's 500 Index (SPX) to fresh record highs on Friday.
"The weakness in the [U.S.] employment report ... included a
decline in hourly earnings (which may have knock-on effects on
income and consumption) and a shorter work week, which depresses
output more than the increased number of workers would boost it,"
said Brown Brothers Harriman head of currency strategy Marc
Chandler.
The Shanghai Composite Index gained 1%, while Hong Kong's Hang
Seng Index inched up 0.1%.
Data released Monday by HSBC put its China's Services Business
Activity Index for July at 51.3, staying above the 50-point
threshold that indicates an improvement in activity, and unchanged
from the level seen in the June survey.
The figure followed a government-sponsored version of the
service-sector survey over the weekend, which showed the July
non-manufacturing index accelerated to 54.1 from 53.9 in June.
"This is another sign that the services sector is stabilizing,
and more importantly, is coping with the clampdown on government
spending," said Kim Eng Securities director of sales trading Andrew
Sullivan.
Shares of Haitong Securities Co. rose 2%, Industrial Bank Co.
added 1.6% and property major Gemdale Corp. added 1.4% in
Shanghai.
In Hong Kong trading, shares of China Resources Land Ltd.
(CRBJF) rose 1.3%, Internet major Tencent Holdings Ltd. (TCEHY)
added 3%, and Cathay Pacific Airways Ltd. (CPCAY) rose 1.1%.
Among the notable decliners in Tokyo, Advantest Corp. (ATE)
dropped 1.9%, insurer T&D Holdings Inc. (TDHOY) gave up 3.5%,
and banking major Mitsubishi UFJ Financial Group Inc. (MTU)
declined 1.4%.
The losses outweighed the positive effect from a string of
upbeat results for Japanese companies. The Nikkei business daily
reported that consolidated pretax profits for the 668 listed
companies that have already announced earnings rose an average 42%
in the April-to-June quarter compared to the year-earlier
period.
Shares of Toyota Motor Corp. (TM) fell 1.1%, even as the auto
giant posted better-than-expected earnings and lifted its annual
profit outlook.
Australia & New Zealand Banking Group (ANEWF) and National
Australia Bank Ltd. dropped 0.3% each in Sydney.
The losses came after the S&P/ASX 200 went for 10 straight
trading days without a loss, including a 1.1% gain on Friday, amid
expectations that the Reserve Bank of Australia may cut its policy
interest rate on Tuesday.
Paladin Energy Ltd. (PDN.T) plunged 28%, after the uranium miner
raised funds through a private placement of shares.
Also lower, shares of Virgin Australia Holdings Ltd. (VBHLF)
declined 4.4% after the carrier warned of a yearly loss of up to
110 million Australian dollars (AUDUSD) ($97.8 million).
Samsung Electronics Co. (SSNLF) lost 0.9% in Seoul following
news that the U.S. government has vetoed a trade body decision to
ban the import and sale of some Apple Inc. (AAPL) products in the
U.S.
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