By Mia Lamar
Stocks in Asia were mostly lower Friday after an official gauge
of Chinese factory activity last month showed signs of
weakness.
China's manufacturing Purchasing Managers Index rose to 51.4 in
October from 51.1 in September, indicating expansion and edging
ahead of economist expectations. New orders and new export orders
both fell from the previous month, however.
"Compared with last year, the central government spending
pattern seems to be proceeding at a slower pace this year," said
Li-Gang Liu, chief China economist at ANZ Banking Group in Hong
Kong.
Pressure is rising on China to show it can maintain a recent
stabilization of economic growth after a worrying slowdown in the
first half of the year.
Stocks on Hong Kong's benchmark Hang Seng Index and China's
Shanghai Composite traded flat following the data. In Sydney, the
S&P ASX 200 fell 0.2%.
South Korea was a bright spot in the region after the country
reported a stronger-than-expected 7.3% rise in exports last month.
Economists polled by The Wall Street Journal on average expected a
4.5% rise. Imports rose 5.1%, also more than expected.
Investors have flocked to South Korean stocks since late summer,
attracted by the country's strong finances and stable currency. The
benchmark Kospi index rose 0.3% Friday.
In Japan, the Nikkei 225 index reversed earlier gains, falling
0.6% despite a weaker yen. The Japanese currency (USDJPY) recently
was at Yen98.18 versus Yen98.36 late Thursday in New York.
Technology earnings were on the radar in Tokyo. Sony Corp. (SNE)
shares slid 11% after the company reported a wider loss for the
September quarter and slashed its profit forecast for the year by
40%.
Pointing in the other direction, SoftBank Corp. (9984.TO) shares
rose 4% after the telecom company reported a 44% leap in quarterly
profit, helped by strong demand for Apple Inc. (AAPL) iPhones sold
by its mobile unit in Japan.
"Clearly the earnings picture is a compelling one, but the lack
of clarity in government policy, especially Prime Minister Abe's
"Third Arrow" of structural reforms seems to be an inhibitor to
foreign investor interest," said CLSA equity strategist Nicholas
Smith.
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