Market Update
Asian markets scored higher Monday as investor confidence recovered after a slight blip following data that showed factory activity in China fell to an eight-month low.
The Nikkei gained 1.8%. The Shanghai Composite was up 0.9% while the Hang Seng rallied 1.9%. The Sensex was up 1.4% and the All Ordinaries edged up 0.2%
Earlier, HSBC said its "flash" edition of China’s Manufacturing PMI fell to 48.1 from 48.5 in February.
Shares fell in Tokyo and in Hong Kong immediately after the data release but recovered within a short while and vaulted higher as investors remained unfazed by signs of the slowdown. The Shanghai Composite and the All Ordinaries also moved up.
Later Monday, the euro-zone, France, Germany, and the U.S. were also due to release early indicators for March manufacturing.
In the latest developments in Ukraine, pro-Russia forces took two bases including a military airport last week Saturday. On Sunday, Ukraine’s National Security and Defence Council chief Andriy Parubiy said Russian troops are poised to attack Ukraine at any time. However, Russian deputy defence minister Anatoly Antonov denied the country was gathering troops on the border.
Stocks on the Move
Panasonic was up 6% on a report the company’s full-year operating profit is likely to be above forecasts.
Sumitomo Metal Mining was up around 1% after a Citi issued a buy rating on the shares.
Utilities Shikoku Electric and Hokkaido Electric were both down 1.2% and 1.3% respectively after being downgraded by Citi.
In Hong Kong, Sinopec was up about 4% after reporting results Sunday.
Hutchison Whampoa fell about 5% after its business tycoon owner Li Ka-shing said he is selling a stake in its retail unit A.S. Watson to Temasek Holdings for about $5.7 billion.
Banks and insurers were all higher after China’s securities regulator Friday released details of a preferred-share trial programme allowing companies to also sell their preferred shares to raise funds.
Mumbai markets advanced with Gail India soaring nearly 5%, followed by ONGC up 4.3%, ICICI Bank up 3.7%, Coal India, up 2.8% while Hero MotoCorp, HDFC Bank, Bajaj Auto and Reliance Industries added around 2% each.
In Sydney, BHP Billiton was up 0.5% while Oil Search and Santos slipped 1.3% and 0.3% respectively. Woodside was up 0.6%.
Investment bank Macquarie Group gained 2.9% after it said it expects net profit for the year to be about 40-45% more than last year.