As Chinese Manufacturing Decline, Most Asian Stocks Open Lower

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As Chinese Manufacturing Decline, Most Asian Stocks Open Lower
As Chinese Manufacturing Decline, Most Asian Stocks Open Lower

As Chinese Manufacturing Decline, Most Asian Stocks Open Lower

Chinese manufacturing sector has been faltering the whole of 2013 and it is still continuing; its impact is now being seen in the economies of the region and even in the stock market. In today’s trading Asian stocks dropped with a regional benchmark index retreating from a three-week high. This all is happening amidst the news that gauges of manufacturing in China declined to a great extent.

The President Xi Jinping is though trying to sustain economic momentum while rolling out reforms; the country is facing a huge challenge as the decline is a major reason behind the falling rate of GDP growth. In today’s trading Industrial & Commercial Bank of China Ltd., the nation’s biggest lender fell 1.3 percent in Hong Kong.

A similar pattern was seen in the performance of Hyundai Motor Co. and Kia Motors Corp. which both lost at least 4.7 percent. The result came in after South Korea’s largest automakers forecast their weakest sales growth in eight years. However, BHP Billiton Ltd., Rio Tinto Group and Fortescue Metals Group Ltd, the Australian iron-ore exporters gained a little.

Major Gainers and Losers

The major gainers today were BHP Billiton Ltd., Rio Tinto Group and Fortescue Metals Group Ltd. A major reason behind the growth in the shares of Australian iron-ore producers is that Port Hedland, the world’s largest ore-export terminal, restarted shipments on Dec. 31 after tropical Cyclone Christine waned.

On the other hand, Hyundai Motor dropped 4.7 percent to 225,500 won in Seoul. Similarly, there was a decline in the shares of its affiliate Kia Motors which fell 6.1 percent to 52,700 won.

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Major Indexes

Whereas Thailand’s SET Index dropped 2.5 percent, the MSCI Asia Pacific Index excluding Japan slipped 0.5 percent to 465.67 as of 1:51 p.m. in Hong Kong. Thailand which is Southeast Asia’s second-largest economy is facing a huge challenge as its SET Index ended at the lowest since September 2012. A major reason behind the fall is political turmoil the country is in.

Most of the indexes in Asia fell today. The trend was set by China’s Shanghai Composite Index which dipped 0.5 percent; the pattern was then followed by Hong Kong’s Hang Seng Index which fell by 0.2 percent. Similarly, South Korea’s Kospi Index dropped 2.1 percent. However, Australia’s S&P/ASX 200 Index added 0.3 percent; a similar result was seen for Singapore’s Straits Times Index which gained 0.2 percent.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com