Asia report: Shares close higher despite weak data in Japan, China
By Frank Prenesti
Date: Wednesday 01 Feb 2023
(Sharecast News) - Asia-Pacific finished higher on Wednesday despite a slowdown in Chinese and Japanese factory activity as investors looked ahead to the Federal Reserve's Wednesday meeting where a further rise in interest rates is expected.
Japan's Nikkei 225 gained 0.07% to even as domestic factory activity logged a third consecutive month of contraction in January.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index held steady at 48.9, below the 50-point mark separating growth from contraction. However, the rate of decline was the slowest since October 2022.
"Input price inflation abated in January, with lower fuel costs helping to offset pressure on business expenses from higher raw material and energy bills," au Jibun Bank said.
South Korea's Kospi advanced 1.02% as the country's export numbers in January fell 16.6% on an annualised basis. The trade deficit was $47.5bn for 2022, official data from the customs agency showed.
It marked the worst deficit since the agency started compiling data in 1956 and more than the $20.6bn recorded in 1996.
Hong Kong's Hang Seng index rose 0.92%, while China's Shanghai Composite added 0.9% and the Shenzhen Component closed 1.31% higher.
Australia's S&P/ASX 200 finished the session 0.33% higher.
China's factory activity in January signalled a further contraction from previous readings, albeit at a slower pace, marking the sixth monthly contraction in a row.
The Caixin manufacturing Purchasing Managers' Index for January came in at 49.2 on Wednesday, a slightly higher reading than December's 49.0.
"Both manufacturing supply and demand continued to shrink last month. Fallout from the pandemic was a drag on production and sales," Caixin said.
Indian shares gained as the country's finance minister proposed a 33% rise in capital spending. The S&P BSE Sensex gained 0.73% at the close.
Finance minister Nirmala Sitharaman presented the budget before parliament, which focused on job creation as well as increased spending in capital expenditure.
Sitharaman announced that outlay for capital spending will be increased 10 trillion rupees ($122.3bn in the next fiscal year.
Meanwhile billionaire Gautam Adani's woes continued after he lost his title of Asia's richest person as a rout in his conglomerate's stocks deepened to $74bn in the aftermath of report from short-seller Hindenburg.
The research company last week alleged improper use of offshore tax havens while flagging concerns about high debt and the valuations of seven listed Adani companies.
Scrutiny increased on Wednesday as an Australian regulator on Wednesday said that it would be reviewing the allegations to see if further enquiries were needed.
The Adani Group has denied the allegations, calling them "baseless".
Wednesday's stock losses saw Gautam Adani slip to 10th on Forbes rich list with an estimated $84.1bn, just below rival Mukesh Ambani, chair of Reliance Industries who has an estimated fortune of $84.4bn.
Reporting by Frank Prenesti for Sharecast.com
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN