Hong Kong: Asian markets mostly slipped on Tuesday, with Hong Kong taking a hit for a second day as a pro-democracy protest showed no signs of abating and a gauge of Chinese manufacturing came in below forecast.
Traders took their cue from a negative Wall Street. Japanese shares were hit by a surprise fall in factory output while the yen edged up against the dollar.
Hong Kong sank 1.28 per cent, or 296.23 points, to 22,932.98, extending Monday’s 1.90 per cent losses.
Tokyo closed 0.84 per cent lower, shedding 137.12 points to 16,173.52, while Seoul gave up 0.32 per cent, or 6.51 points, to end at 2,020.09.
However, Sydney added 0.54 per cent, or 28.58 points, to 5,292.8 and Shanghai climbed 0.26 per cent, or 6.16 points, to 2,363.87 on the last day before a week-long holiday for China’s National Day.
In Hong Kong, a second night of mass protests passed off peacefully on Monday, bringing relief after Sunday night saw police fire tear gas and pepper spray at protesters in the financial hub.
However, some of the city’s key roads remained closed off, with the demonstrators refusing to move until Beijing agrees to its demands for full universal suffrage.
The campaign comes as China’s Golden Week holiday begins on Wednesday, when big-spending mainlanders normally visit the city’s luxury stores.
While there are fears about the impact on the city’s economy Laura Luo, head of Hong Kong and China equities at Baring Asset Management, said the effects of the standoff on Hong Kong stocks would be limited.
“It is natural for investors to choose to take profit in an event like this, but any major market plunge may present a good entry point for long-term investors,” she told Dow Jones Newswires.
Adding downward pressure on shares was HSBC’s final purchasing managers’ index (PMI) for China, which came in at 50.2 for September.
While it was above the 50-point level that separates growth from contraction, it is lower than the 50.5 predicted in last week’s preliminary reading and adds to fears about the Chinese economy following a series of soft data.
In Japan official data showed factory production unexpectedly fell 1.5 per cent month-on-month in August, reversing a 0.4 per cent uptick in July. Output grew at its fastest rate in more than two years in January before losing steam.
Also, household spending dropped a steeper-than-expected 4.7 per cent in August, logging a year-on-year drop for the fifth straight month since a sales tax rise in April.
The figures raised concerns that the tax hike continues to weigh on consumption and the economy.
Foreign exchange trading saw the dollar at 109.40 yen against 109.45 yen in New York late Monday as it takes a breather before the release of US data this week, with some economists predicting it will bounce back and pass 110 yen soon.
The euro bought $1.2684 and 138.77 yen, against $1.2686 and 138.87 yen in New York
On Wall Street, dealers took their cash off the table on Monday as they warily eye events in Hong Kong, while looking ahead to the US data releases, culminating in jobs creation figures on Friday.
The Dow slipped 0.25 per cent, the S&P 500 also lost 0.25 per cent and the Nasdaq fell 0.14 per cent.
On oil markets US benchmark West Texas Intermediate for November delivery was up nine cents at $94.66 a barrel and Brent crude added 53 cents to $97.73.
Gold was at $1,207.30 an ounce against $1,219.65 late Monday.
Among other markets, Taipei was flat, edging up 6.16 points to 8,966.92.
Smartphone maker HTC rose 1.54 per cent to Tw$132.0 while Taiwan Semiconductor Manufacturing fell 0.41 per cent to Tw$120.0.
Wellington ended marginally lower, dipping 4.47 points to 5,255.04.
Spark was up 0.34 per cent at NZ$2.97 and Fletcher Building was steady at NZ$8.78.
Manila closed 0.13 per cent higher, adding 9.69 points to 7,275.05.
Energy Development gained 3.46 per cent to 8.08 pesos while Philippine Long Distance Telephone rose 0.19 per cent to 3,096 pesos.
Bangkok slipped 0.01 per cent, or 0.12 points, to 1,585.67.
Coal producer Banpu lost 0.84 per cent to 29.50 while Bangkok Bank added 0.49 per cent to 204.00 baht.
Kuala Lumpur ended flat at 1,846.31.
SapuraKencana Petroleum lost 0.7 per cent to 4.12 ringgit, while RHB Capital fell 0.5 per cent to 8.83. Axiata Group inched up 0.1 per cent to 7.00 ringgit.
Jakarta ended down 0.09 per cent, or 4.43 points, at 5,137.58.
Hero Supermarket climbed 1.80 per cent to 2,545 rupiah, while Indah Kiat Pulp & Paper lost 0.94 per cent to 1,055 rupiah.
Singapore closed down 0.39 per cent, or 12.98 points, to 3,276.74.
United Overseas Bank eased 0.71 per cent to Sg$22.40 while public transport firm ComfortDelGro fell 4.00 per cent to Sg$2.40.
Mumbai was up 0.13 per cent, or 33.40 points, at 6,630.51.
Eicher Motors gained 6.24 per cent to 11,987.40 rupees, while Indiabulls Real Estate fell 5.33 per cent to 67.55 rupees.
