Hong Kong: Equities in Shanghai extended their rally Friday on hopes for new economy-boosting measures from China, but Hong Kong and most other Asian markets retreated following more weak US data and losses on Wall Street.
The dollar lost ground as the chances of a summer US interest rate hike slimmed after disappointing jobs and housing figures, while the euro managed to hold up despite new worries about Greece’s Eurozone future.
Shanghai rose 2.20 per cent, or 92.47 points, to 4,287.30 but Hong Kong slid 0.31 per cent, or 86.59 points, to 27,653.12.
Tokyo tumbled 1.17 per cent, or 232.89 points, to close at 19,652.88, Sydney sank 1.28 per cent, or 76.00 points, to 5,871.50 and Seoul added 0.17 per cent, or 3.60 points, to 2,143.50.
A string of poor Chinese indicators have fuelled a rally in Shanghai’s benchmark index over the past year and now mainland investors are turning their attention to Hong Kong, buying what they consider cheap assets.
The southward flood of cash saw turnover in Hong Kong hit record highs twice last week as traders make the most of a link-up between the city’s exchange and the bourse in Shanghai.
Wednesday’s news that the Chinese economy grew at its slowest quarterly pace in six years has reinforced expectations that Beijing will announce new easing measures.
The yen advanced against the dollar after US data showed housing starts rose less than expected in March, while initial jobless claims, a sign of the pace of layoffs, increased well above estimates to their highest level in six weeks.
The Dow dipped 0.04 per cent, the S&P500 edged down 0.08 per cent and the Nasdaq eased 0.06 per cent.
The dollar bought 118.78 yen Friday against 119.04 yen in New York but down from 119.33 yen in Tokyo earlier Thursday.
Expectations
A speech by Atlanta Fed chief Dennis Lockhart, a voting member of the Federal Open Market Committee, the central bank’s policy arm, also weighed on the dollar.
“A murky economic picture is not an ideal circumstance for making a major policy decision” on beginning to raise rates, he said, insisting he was presenting his own views and not speaking for the policy board or the Fed.
Bets earlier in the year had been on a rise as early as June as the economy showed signs of strength but those expectations have been all but erased following a recent run of downbeat figures.
The euro stood its ground despite worries over Greece after the International Monetary Fund refused to give it more time to repay its loans, while the country’s Prime Minister Alexis Tsipras said he was talking to the Orthodox Church about using clerical assets to boost state coffers.
The single currency fetched $1.07670 and 128.21 yen on Friday compared with $1.0761 and 128.10 yen in US trade.
Oil prices were lower after clocking up six consecutive days of gains on signs that US production may start easing.
US benchmark West Texas Intermediate for May delivery fell 54 cents to $56.17 and Brent crude for May tumbled 53 cents to $63.45.
Gold fetched $1,205.91 against $1,208.60 late Thursday.
Singapore closed down 0.18 per cent, or 6.42 points, to 3,525.19. Oil rig maker Keppel Corp declined 2.01 per cent to Sg$9.25 while public transport firm ComfortDelGro fell 1.70 per cent to Sg$3.00. Jakarta ended down 0.19 per cent, or 10.09 points, at 5,410.64. Lender Bank Tabungan Negara gained 2.56 per cent to 1,200 rupiah, while property developer Summarecon Agung slipped 2.40 per cent to 1,830 rupiah. Malaysia’s main index lost 0.11 per cent, or 2.08 points, to close at 1,845.86.Taiwan Semiconductor Manufacturing Co shed 3.06 per cent to Tw$142.5 while smartphone maker HTC slipped 2.64 per cent to Tw$129.0. — Manila was flat, edging down 1.31 per cent to 7,946.89.
