advertisement

Asian stocks up despite disappointing China factory data

BEIJING (AP) - Asian stock markets rose Monday despite disappointing Chinese factory data and last week's Wall Street decline.

KEEPING SCORE: The Shanghai Composite Index advanced 0.2 percent to 2,833.48 and Hong Kong's Hang Seng gained 1.2 percent to 19,933.30. Tokyo's Nikkei 225 rose 1 percent to 16,583.04 and Seoul's Kospi added 0.1 percent to 1,969.16. Sydney's Sydney's S&P-ASX 200 advanced 0.6 percent to 5,358.80 and benchmarks in Taiwan, New Zealand, Singapore and Manila also gained. Jakarta declined.

CHINESE WEAKNESS: Government data on April factory output were weaker than expected, fueling concern a possible economic rebound supported by government stimulus might be faltering. That was partly offset by strength in real estate sales growth, which accelerated to 44 percent over a year ago. The data suggest the credit-fueled recovery "cannot be sustained for long," Citigroup said in a report. Credit growth was weaker than forecast, but "remained very strong," UBS economists said. They said government policy should stay largely stable, with credit growth "staying accommodative."

ANALYST'S TAKE: "Weaker than expected data on China's economy will add to investor nerves in what was already looking like a cautious start to the week," said Ric Spooner of CMC Markets in a report. Weakness in retail sales, factory output and credit growth "all suggest that we are not about to see a stimulus-led improvement in China's GDP growth as markets had been hoping earlier in the year," said Spooner. "The overall trend suggests that China's growth rate is holding the line at best."

WALL STREET: A late slump Friday pulled U.S. stocks to their third straight weekly loss. Companies that make clothing, food and household goods dropped on more bad news from retailers, and energy companies fell with the price of oil. Bond prices jumped and yields fell, which hurt bank stocks and prompted suggestions that with investors worried about weak profits and the health of the global economy, the latest rally has run its course. The Dow Jones industrial average gave up 1.1 percent while the Standard & Poor's 500 index fell 0.8 percent. The Nasdaq composite index lost 0.4 percent. The S&P 500 has fallen 2.2 percent over the last three weeks, bringing the index back almost to breakeven for the year.

ENERGY: Benchmark U.S. crude gained 62 cents to $46.83 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 49 cents on Friday to close at $46.21. Brent crude, used to price international oils, added 60 cents to $48.43 per barrel in London. It retreated 25 cents the previous session to $47.83.

CURRENCY: The dollar gained to 108.90 from Friday's 108.65. The euro edged down to $1.1306 from $1.1308.

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.