Date: Thursday 01 Jul 2010Asian stocks fell for the fourth day in succession on further signs of slowing Chinese economic growth.
China’s PMI fell to 52.1 in June from 53.9 in May. Economists had predicted a fall to 53.2.
Meanwhile a Chinese manufacturing index compiled by HSBC and Markit Economics fell to a 14-month low.
The measure eased to 50.4 in June from 52.7 in May, with output declining for the first time in 15 months, the survey said.
The slowdown in Chinese economic activity dented Hitachi Construction Machinery which does a lot of its business in China.
Exporters such as consumer electronics firm Sony, car makers Nissan, Toyota and Honda and printer makers Kyocera and Canon dived on fears of a higher yen and worries over how austerity measures in Europe would affect demand for their products.
A statement by Moody’s that it is considering revising downwards its Aaa rating for Spain’s sovereign debt also dampened sentiment.
In contrast, tyre maker Bridgestone was boosted by a Goldman Sachs upgrade.
Cargo rates fell for the 24th day in succession, sapping demand for shipping lines such as Kawasaki Kisen Kaisha and Mitsui OSK.
Mobile phone company Softbank was friendless after it revealed affiliate Yahoo Japan will be required to pay more taxes than previously thought.
The Nikkei 225 index fell 191 points to 9.191.
In Australia there were rumours of a breakthrough in the negotiations between the government and the big mining companies over the proposed introduction of a resource tax.
Australian newspapers report that BHP Billiton, Xstrata and Rio Tinto have agreed a deal with the government that is thought to be a watered down version of the proposals favoured by former prime minister Kevin Rudd, who was ousted as leader last week.
The Sydney Morning Herald reports that the trio have agreed to a new trigger point for the imposition of the levy, which would see it set at the 10-year Commonwealth bond yield plus 7%, equivalent in total to about 12%.
Despite the boost to mining stocks the Aussie All Ordinaries index fell 62 points to 4,262.
The Hong Kong market was closed today for a market holiday.
China’s PMI fell to 52.1 in June from 53.9 in May. Economists had predicted a fall to 53.2.
Meanwhile a Chinese manufacturing index compiled by HSBC and Markit Economics fell to a 14-month low.
The measure eased to 50.4 in June from 52.7 in May, with output declining for the first time in 15 months, the survey said.
The slowdown in Chinese economic activity dented Hitachi Construction Machinery which does a lot of its business in China.
Exporters such as consumer electronics firm Sony, car makers Nissan, Toyota and Honda and printer makers Kyocera and Canon dived on fears of a higher yen and worries over how austerity measures in Europe would affect demand for their products.
A statement by Moody’s that it is considering revising downwards its Aaa rating for Spain’s sovereign debt also dampened sentiment.
In contrast, tyre maker Bridgestone was boosted by a Goldman Sachs upgrade.
Cargo rates fell for the 24th day in succession, sapping demand for shipping lines such as Kawasaki Kisen Kaisha and Mitsui OSK.
Mobile phone company Softbank was friendless after it revealed affiliate Yahoo Japan will be required to pay more taxes than previously thought.
The Nikkei 225 index fell 191 points to 9.191.
In Australia there were rumours of a breakthrough in the negotiations between the government and the big mining companies over the proposed introduction of a resource tax.
Australian newspapers report that BHP Billiton, Xstrata and Rio Tinto have agreed a deal with the government that is thought to be a watered down version of the proposals favoured by former prime minister Kevin Rudd, who was ousted as leader last week.
The Sydney Morning Herald reports that the trio have agreed to a new trigger point for the imposition of the levy, which would see it set at the 10-year Commonwealth bond yield plus 7%, equivalent in total to about 12%.Despite the boost to mining stocks the Aussie All Ordinaries index fell 62 points to 4,262.
The Hong Kong market was closed today for a market holiday.
No comments:
Post a Comment