Asian stocks uneven as China data underwhelms

SEOUL, Korea, Republic Of - Chinese stocks fell Monday after a weak manufacturing report while Japan extended gains following its central bank's introduction of a negative interest rate policy to boost lending by banks.

See Full Article

Other markets were mixed.

KEEPING SCORE: Japan's Nikkei 225 rose 1.8 per cent to 17,833.53 and South Korea's Kospi added 0.3 per cent to 1,918.22. Hong Kong's Hang Seng fell 0.6 per cent to 19,557.75 and the Shanghai Composite in mainland China lost 1.7 per cent to 2,689.89. Australia's S&P/ASX 200 gained 0.8 per cent to 5,047.40. Stocks in Taiwan and Southeast Asia were lower.

CHINA MANUFACTURING: An index based on a survey of factory purchasing managers fell to 49.4 in January, its lowest in more than three years, in the latest sign of weakness for the world's No. 2 economy. January's reading was down from December's 49.7 on a 100-point scale on which numbers below 50 indicate contraction. Separately, the private Caixin/Markit purchasing managers' index showed improvement but was weak overall.

THE QUOTE: Investors will expect more stimulus from Beijing as the latest data showed that China's manufacturing is "in a state of further deterioration," said Mizuho Bank in a daily commentary. "Markets could be betting on more co-ordinated and forceful stimulus from Beijing too now that there is a certain policy stimulus momentum established."

CENTRAL BANKS: Analysts said after Japan's central bank introduced a negative interest rate policy on Friday, central banks in other countries may add to stimulus or be more cautious about tightening policy. "The Bank of Japan's move sets a more dovish tone for major central banks around the world," said Ric Spooner, chief analyst at CMC Markets in Sydney. "At the margin, it will increase the incentive for the ECB to add stimulus as it seeks to keep its currency relatively weak. Similarly the Fed and the Bank England will be a little more cautious about lifting rates."

WALL STREET: U.S. stock markets posted their biggest gains in about five months on Friday though ended January with losses. The Dow Jones industrial average surged 2.5 per cent to 16,466.30. The Standard & Poor's 500 rose 2.5 per cent to 1,940.24. The Nasdaq composite index jumped 2.4 per cent to 4,613.95.

ENERGY: Benchmark U.S. oil was down 70 cents to $32.92 a barrel in electronic trading on the New York Mercantile Exchange. It finished Friday at $33.62 a barrel, up 40 cents, or 1.2 per cent. Brent crude, a benchmark for international oils, fell 73 cents to $35.26 a barrel in London.

CURRENCIES: The dollar rose to 121.20 yen from 121.12 yen on Friday. The euro strengthened to $1.0853 from $1.0831.



Advertisements

Latest Economic News

  • Ottawa fails to secure new buyer for Trans Mountain pipeline by deadline

    Economic CTV News
    OTTAWA -- The federal government is set to become the official owner of the Trans Mountain pipeline expansion after failing to quickly flip the project to another private-sector buyer. Pipeline owner Kinder Morgan had been working with the government to identify another buyer before July 22. Source
  • Ailing auto CEO Marchionne had multiple roles, no script

    Economic CTV News
    MILAN -- Sergio Marchionne's achievements as one of the automotive world's most charismatic chief executives include the bold trans-Atlantic merger of Italian carmaker Fiat and U.S. No. 3 Chrysler after he restored both to health. Source
  • 'Worse than oil': Sask. farmers say Husky downplaying damage from salt water leak

    Economic CBC News
    The Saskatchewan farming family that owns the land where salt water leaked from a Husky Energy line says the company is "underplaying" the damage. Ken and Nick Wourms have released aerial photos that show yellowed trees and vegetation in what appears to be the path of the leak, which spilled salt water into the Englishman River, about 500 metres from the leak site near Turtleford, Sask. Source
  • CMHC moves to make it easier for self-employed to get a mortgage

    Economic CBC News
    Self-employed Canadians seeking to buy a home may soon find it easier to secure a mortgage after changes announced by Canada Mortgage and Housing Corp. CMHC said self-employed people make up about 15 per cent of Canada's population, but they may have difficulty qualifying for a mortgage because their incomes may vary or be less predictable. Source
  • Investigating sales tactics and condos rush to ban weed: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Don't panic. CBC's Marketplace rounds up the consumer and health news you need. Want this in your inbox? Get the Marketplace newsletter every Friday. Telecom sales tactics Have you ever felt pressured by employees selling TV, internet and wireless services? The CRTC is inviting you to raise your complaints online or at a public hearing starting Oct. Source
  • Pipeline protesters to hold news conference after eviction notice

    Economic CTV News
    BURNABY, B.C. -- Protesters at an anti-pipeline camp in Burnaby, B.C., are set to hold a news conference to relay their side of the story this morning, instead of complying with an eviction notice handed down by the city. Source
  • Pipeline protesters defy city-issued eviction order, say they'll meet with officials

    Economic CTV News
    BURNABY, B.C. -- Protesters at an anti-pipeline camp in Burnaby, B.C., say they will meet with officials to discuss safety measures, but will not comply with a city-issued eviction order. The City of Burnaby says there are safety concerns surrounding "Camp Cloud," including a two-storey watch house and a fire that the protesters describe as sacred and ceremonial. Source
  • Edmonton man charged following investigation into alleged $5.5M Ponzi scheme

    Economic CTV News
    EDMONTON -- Police say a 59-year-old Edmonton man is facing charges after allegedly orchestrating a Ponzi scheme valued at $5.5 million. Investigators with the Edmonton police say the man used the company name "Wakina Consulting Inc. Source
  • Edmonton man charged after investigation into alleged $5.5M Ponzi scheme

    Economic CTV News
    EDMONTON -- Police say a 59-year-old Edmonton man is facing charges after allegedly orchestrating a Ponzi scheme valued at $5.5 million. Investigators with the Edmonton police say the man used the company name "Wakina Consulting Inc. Source
  • Aeroplan wants to be your rewards program and travel agent. Will it work?

    Economic CBC News
    Aeroplan wants to be more than your rewards program; it also aims to serve as your travel agent. The program announced its ambitious plans this week, which include offering charter flights to sun destinations, opportunities to book travel with cash while earning points, and the ability to transfer miles to other loyalty programs. Source