Tuesday, April 23, 2013

(BN) Asian Stocks Erase Gains as China Manufacturing Misses Estimates

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Asian Stocks Erase Gains as China Manufacturing Misses Estimates
2013-04-23 02:38:15.327 GMT


By Jonathan Burgos and Adam Haigh
April 23 (Bloomberg) -- Asian stocks fell, erasing earlier
gains, after a preliminary report showed Chinese manufacturing
expanded less than economists estimated.
Agricultural Bank of China Ltd., the nation's third-largest
lender, slid 2 percent in Hong Kong. Yamada Denki Co. sank 6.3
percent in Tokyo after the consumer electronics retailer cut its
full-year profit forecast. Woodside Petroleum Ltd., Australia's
second-largest oil producer, jumped 8 percent after announcing
plans to return cash to shareholders.
The MSCI Asia Pacific Index slid 0.2 percent to 137.12 as
of 11:36 a.m. in Tokyo, erasing gains of as much as 0.3 percent.
Five stocks fell for every three that fell on the gauge. The
measure increased 6.2 percent this year through yesterday amid
signs the U.S. economy is recovering and as Japanese equities
rallied on speculation the Bank of Japan will step up efforts to
stimulate its economy. China's manufacturing is expanding at a
slower pace this month, according to a preliminary report by
HSBC Holdings Plc and Markit Economics.
"There could be some overreaction in the market," said Ng
Soo Nam, Singapore-based chief investment officer at Nikko Asset
Management Asia Ltd., whose Japan-based parent oversees about
$165 billion. "I'm not too worried over China's softening
economic data. The government is introducing policies to make
sure the economy moves along a sustainable growth path.
Valuations are still OK and earnings are still growing."

China PMI

China's Shanghai Composite Index dropped 1.6 percent,
heading for its biggest decline since March 28. The preliminary
reading of 50.5 for a Purchasing Managers' Index, a gauge of
manufacturing activity that was released by HSBC and Markit
Economics, compared with a final reading of 51.6 for March. The
number was also below the median 51.5 estimate in a Bloomberg
News survey of 11 analysts. A reading above 50 indicates
expansion. Hong Kong's Hang Seng Index slipped 1 percent.
Japan's Nikkei 225 Stock Average decreased 0.3 percent.
South Korea's Kospi Index fell 0.7 percent, while Taiwan's Taiex
Index lost 0.4 percent. Australia's S&P/ASX 200 Index climbed
0.9 percent and New Zealand's NZX 50 Index added 0.8 percent.
Shares on the benchmark MSCI Asia Pacific Index traded at
14 times estimated earnings compared with 14.1 for the Standard
& Poor's 500 Index and 12.4 for the Stoxx Europe 600 Index,
according to data compiled by Bloomberg.
Futures on the Standard & Poor's 500 Index slid 0.2 percent
today. The gauge climbed 0.5 percent yesterday as Caterpillar
Inc. jumped and a rally in commodity prices spurred energy and
raw-material producers.

For Related News and Information:
Developed Market View: DMMV <GO>
Graphing: GRAPH <GO>
Feature stories on stocks: TNI STK GREET <GO>
MSCI Asia Pacific versus Dow Jones Industrial Average:
MXAP <Index> INDU <Index> HS <GO>
World Trends and Reversals: WTR <GO>
Equity screening: EQS <GO>

--Editors: John McCluskey, Nick Gentle

To contact the reporters on this story:
Jonathan Burgos in Singapore at +65-6212-1156 or
jburgos4@bloomberg.net;
Adam Haigh in Sydney at +61-2-9777-8635 or
ahaigh1@bloomberg.net

To contact the editor responsible for this story:
Nick Gentle at +852-2977-6545 or
ngentle2@bloomberg.net

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