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Asian Stocks Mixed Amid Weak Data(Alliance News Via Acquire Media NewsEdge) CANBERA (Alliance News) - Asian stocks turned in a mixed performance on Wednesday, as investors digested weak US consumer confidence data and a report showing continued decline in eurozone inflation to a five-year low in September. With the inflation coming in way below the ECB's target of just under 2% for several months now and various economic surveys painting a gloomy outlook for growth, the pressure is now on the European Central Bank to take more preventive action when its governing council meets on Thursday. Investors also digested a mixed bag of regional data, with confidence among major Japanese manufacturers improving for the first time in two quarters in the three months to September and South Korean exports rebounding sharply in September from a decline in the previous month, while Australian retail sales missed expectations. Meanwhile, China's manufacturing sector expanded at a stable rate in September, exceeding economists' expectations, figures from the China Federation of Logistics and Purchasing showed. The manufacturing purchasing managers' index stood at 51.1, the same as in August. Economists had expected the index to decrease to 51. Japanese shares hit a two-week low in choppy trading after the Bank of Japan's Tankan business survey showed service-sector sentiment worsened in the three months to September due to the impact of the April consumption tax hike. The large manufacturers index, however, came in with a score of 13, beating forecasts for 10 and up from 12 in the second quarter. Separately, the latest survey from Markit Economics revealed that Japan's manufacturing sector slowed in September, but continued to expand with a score of 51.7, unrevised from the flash estimate earlier this month and down from 52.2 in August. The benchmark Nikkei average fell 0.56% to 16,082.25, its lowest level since September 18, while the broader Topix index of all first-section shares closed down 0.61% at 1,318.21. Among prominent decliners, Mitsumi Electric, Sumitomo Heavy Industries, Mitsubishi Motors, and Nisshin Steel fell about 3% each. Nikon Corp. dropped 1.2% on a report it will likely report a 77% drop in first-half operating profit. Mitsubishi Electric Corp. lost 2% after the company said it has completed its Elevators and Escalators QM center to develop and test global models. Australian shares rose despite disappointing retail sales data. The benchmark S&P/ASX 200 index climbed 0.8% to 5,334.1 points, while the broader All Ordinaries Index advanced 0.7%. High-yielding banking stocks gained ground for a second consecutive session spurred by a weak dollar. NAB, Westpac, Commonwealth and ANZ rose between 0.9% and 1.7%. Telecommunications giant Telstra, which offers a dividend yield of more than 5%, advanced 1.5%. The Australian dollar plunged towards its lowest levels so far in 2014, as surprisingly weak retail sales data damped hopes of a recovery in consumer spending. Australian retail sales rose 0.1% in August from the previous month, well shy of forecasts for an increase of 0.4%, Australian Bureau of Statistics data showed. Another report from the Australian Industry Group showed that Australia's manufacturing sector continued to contract in September, with a performance of manufacturing index score of 46.5, down from 47.3 in August. Resource stocks ended mostly lower, with Rio Tinto and Fortescue falling about half a percent each and Newcrest tumbling 4.7%, amid softer commodity prices. Santos slid 0.3% and Oil Search fell half a percent after global oil prices tumbled to their lowest level in more than two years on Tuesday, hit by ample crude supplies, weak data from major buyer China and a stronger US dollar. Retailer Wesfarmers rose 0.4% after announcing it will raise about USD870 million through a bonds issue. Woolworths added 1.4% while Myer Holdings dropped 0.8%. Seoul shares fell sharply on concerns over the pace of economic recovery after the latest survey from Markit Economics revealed the country's manufacturing sector dipped into contraction in September, with a PMI score of 48.8. Trade data released along showed that South Korea posted a merchandise trade surplus of USD3.4 billion in September, in line with expectations and roughly unchanged from August. Exports climbed an annual 6.8% versus forecasts for an 8.2% jump. The headline inflation, meanwhile, fell to a seven-month low in September, helped by stable prices of food and healthcare services, giving the Bank of Korea ample room to cut rates when it meets on October 15. The benchmark Kospi average tumbled 1.41% to 1,991.54, its lowest level since July 14. Market heavyweight Samsung Electronics fell 2.4%, chemicals firm LG Chem dropped 2.5% and steelmaker Posco lost 3.4%, while mobile carrier SK Telecom rose 2.4% on defensive buying. New Zealand stocks rose, led by gains in high-yielding stocks amid a dearth of trading cues. The benchmark NZX-50 index rose 0.37% to finish at 5,274.58, with 29 of its components retreating. Spark New Zealand, formerly Telecom New Zealand, rose 2%, while infrastructure investor Infratil climbed 2.1% after signaling a capital return. The Shanghai market is shut Oct. 1-7 for National Day holidays, while the Hong Kong market is closed on Wednesday and Thursday. Elsewhere, India's Sensex was down 0.1%, Malaysian shares were marginally lower and Singapore's Straits Times index was down 0.4%, while Indonesia's Jakarta Composite index was up marginally and the Taiwan Weighted average rose 0.3%. Indonesia's manufacturing sector recovered in September after a contraction in the previous month, the latest survey by Markit Economics and HSBC Bank revealed. Taiwan's manufacturing sector expanded at the slowest rate in four months in September, a private survey showed. US stocks finished a choppy session slightly lower overnight, as investors digested disappointing profit forecast from Ford Motor and lackluster data on housing, manufacturing and consumer confidence. US home prices increased at the slowest pace in 20 months in July and consumer confidence expectedly fell from 7-year highs in September, while Chicago-area manufacturing activity expanded at a slower pace than the previous month in September, separate reports showed. The Dow slid 0.2%, while the tech-heavy Nasdaq and the S&P 500 fell about 0.3% each. Copyright RTT News/dpa-AFX |