Asian Shares Plunge as Signs of China Slowdown Increase

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Asian Shares Plunge as Signs of China Slowdown Increase

Asian shares dropped in the week ended May 9, with Japan’s Topix gauge dropping the most in trading cut short due to holidays, in the wake of a report showing Chinese manufacturing slowed for the fourth straight month.

China Resources Land Ltd declined 9.8% as developers lost in Hong Kong. Great Wall Motor Co. shrank 23% as the biggest manufacturer of sport-utility vehicles in China halted sales of its new Haval H8 after customer complaints.

Online retailer Rakuten Inc went down 9.9% in Tokyo after earnings were below projections and US technology stocks tumbled. Envestra Ltd added as Cheung Kong Group owned by investor Li Ka-shing made a cash bid that put value of the Australian natural-gas dealer at 2.4 billion Australian dollars or $2.3 billion.

The MSCI Asia Pacific Index reversed 0.4 to close the week at 137.91. Among stocks of 24 developed markets followed by Bloomberg, Japan and Hong Kong, which are the second-and third-largest stock markets in the world respectively, reported the deepest plunge.

“We’ve seen an ongoing trend of mixed economic data, with China still looking pretty challenging in terms of the loss of momentum there. We’ve become a little more cautious over the past few weeks,” said Mark Lister of Craigs Investment Partners Ltd in Wellington.

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A private gauge of HSBC Holdings/Markit Economics showed that China’s manufacturing contracted and offset expectations of a surge in exports and imports for the second-biggest economy in the world last month.

Hang Seng Index of Hong Kong slid 1.8 in the week as the Shanghai Composite Index sank 0.8%, capping its fourth straight week of declines.

Nikkei of Japan increased 0.3% to 14199.59, the Wall Street Journal reported.

S&P/ASX 200 of Australia slumped 0.3%.

Taiwan’s Taiex measure rose 0.3% as Straits Times Index of Singapore was flat. South Korea’s Kospi plunged 0.2%.

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