Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Shares in Asia mixed as China heads for long holiday next week

Published 09/29/2016, 10:58 PM
Updated 09/29/2016, 11:00 PM
© Reuters.  Asian shares mixed

Investing.com - Asian shares were mixed on Friday with investors keeping tabs on local data sets and noting an expected outcome for the Caixin China manufacturing PMI.

The Nikkei 225 fell 1.55%, while the S&P/ASX 200 dropped 0.80% and the Shanghai Composite rose 0.08% ahead a major holiday period starting next week.

The Caixin manufacturing PMI for September came in at 50.1 as expected with holidays in China next week in focus going forward. "The readings for the manufacturing PMI over the past three months seem to indicate that the economy has begun to stabilise," Zhengsheng Zhong, director of macroeconomic analysis at Caixin said.

But Zhong cautioned that an increasingly strained fiscal budget could pose a risk to sustainable growth. "Given that the growth rate of fiscal income has slowed recently while expenditures have swung, there is insufficient momentum to drive future economic growth, and there is a risk that industrial output may decline."

The official China manufacturing PMI for September from the National Bureau of Statistics and China Federation of Logistics and Purchasing will be released on Saturday and came in at 50.4 in August which was the highest since October 2014.

In Australia, HIA new home sales for September rose 6.1% month-on-month, with a fall of 9.7% the previous month and housing credit gained 0.5% for August, the same as the previous month, while private sector credit gained 0.4%, below the 0.5% gain seen in August month-on-month.

Earlier in Japan, a busy day with household spending for August down a sharp 3.7%, compared to a drop of 1.0% seen month-on-month and a decline of 4.6% year-on-year, more than the 2.5% fall seen. It was the 11th fall in the past 12 months. As Thursday's retail sales data showed, spending slowed in August, when typhoon weather kept shoppers away and there was one less weekend compared to a year before. As well, the seasonally adjusted average unemployment rate in August edged up from the previous month to 3.1% but was still close to a 21-year low of 3.0% in July.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

As well, national core CPI for August fell 0.5%, more than the expected 0.4% decline year-on-year, the sixth straight drop, matching July's pace. Retailers are cautious about raising prices in broad sectors after last year's price hikes amidst the uncertainty over global and domestic growth. And national CPI dipped 0.5% for August as expected.

Industrial production in Japan for August rose 1.5% provisionally, handily beating an expected gain of 0.5%.

Ahead, Atlanta Fed President Dennis Lockhart, Fed Governor Jerome Powell, Minneapolis Fed President Neel Kashkari and Kansas City Fed President Esther George are all scheduled to speak during the day.

There is also an appearance by Fed Chair Janet Yellen, who is due to speak via video conference at the Minority Bankers Forum in Kansas City at 4:00PM ET (20:00GMT).

Yellen told Congress on Wednesday that the central bank does not have a "fixed timetable" for modifying its monetary policy. However, she added that continued job creation at its current pace would cause the economy to overheat and, in that case, the Fed could be forced to raise rates faster than expected. Markets are currently pricing in around a 52% chance of a rate hike at December's meeting, according to Investing.com's Fed Rate Monitor Tool.

U.S. stocks were lower after the close on Thursday, as losses in the Healthcare, Utilities and Financials sectors led shares lower.

At the close in NYSE, the Dow Jones Industrial Average declined 1.07%, while the S&P 500 index lost 0.93%, and the NASDAQ Composite index declined 0.93%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.