Market Update
Asian markets lackluster Friday amid a flurry of data from Japan.
The Nikkei was down 0.3%. The Shanghai Composite slipped 0.1% while the Hang Seng edged up 0.2%. The Sensex edged up 0.1% while the All Ordinaries declined 0.5%.
In Japan, data showed industrial production was slightly weaker than-expected as output fell 2.5% in April after rising 0.7% in March.
Consumer spending data showed prices rose at their fastest pace in April since 1991, rising 3.2% from a year earlier. The government had increased its sales tax rate from 5% to 8% from April 1. Household spending also fell 4.6% compared to the last year.
The unemployment rate remained unchanged at 3.6% for the third straight month.
Yet another report showed housing starts fell 3.3% year-over-year in April, smaller than expectations for a decline of 8.4%. For the quarter, housing starts fell to 69,400, marking three consecutive months of decline. Annualized housing starts came in at a seasonally adjusted 906,000 in April, beating expectations of 863,000.
In Australia, data showed private sector credit issued to consumers and businesses rose slightly more-than-expected to a seasonally adjusted 0.5% in April.
Economic data is also due from China over the weekend including its official manufacturing Purchasing Managers' Index.
Stocks on the Move
Softbank shares were up 1.5% as a media report said citing sources Deutsche Telekom had given its preliminary approval of the purchase of T-Mobile US by the Japanese company’s Sprint unit.
Astellas Pharma was up 0.8% on a report it is likely to offer a dividend increase each year through 2018.
Toshiba was up a percent even as S&P removed its Negative outlook on the company’s debt rating.
Sony was down 0.6% while Fujitsu fell 1.9%. Sharp was up 0.7% while Mitsubishi Heavy traded flat.
The Hang Seng stayed in positive territory ahead of the three-day Dragon Boat holiday weekend. Tencent declined 0.3%. China Unicom was up 1.9% while China Telecom gained 1.6% and HC International added 2.4%. Boyaa Interactive was up a percent.
The Sensex traded flat ahead of GDP data.
M&M, Suzlon Energy, AstraZeneca Pharma India, and a host of others companies are due to announce results today.
Cipla was up 1.9% after its results. HUL led gainers, up 3.9% followed by ONGC, up 2.5% also after results.
L&T was also up 0.6% ahead of its March quarter results.
NTPC was up 2% while Gail India and Airtel were up 1.6% each, respectively.
Outside the Sensex, defense stocks were up after a media report India’s new government was considering introducing 100% foreign direct investment in the sector.
Aussies miners sank as spot iron-ore prices hit a fresh 20-month low.
BHP Billiton and Rio Tinto shares were down 1.3% each while Fortescue Metals fell 2.9%. Atlas Iron weakened 4.9%. BlueScope Steel also gave up 4%.
Australand Property Group advanced 2.1% while Stockland edged up 0.3%. A Wall Street Journal report said Stockland would not sweeten its bid for the former even as Australand hiked its operating profit estimates.