Asia report: Markets mixed as banking concerns continue

Stock markets in the Asia-Pacific region were mixed on Friday, as investors reacted to the fourth consecutive day of losses on Wall Street overnight amid concerns surrounding regional US banks.

Traders in both Japan and South Korea were away from their desks for the Children’s Day holiday, adding to subdued trading activity in the region.

“Asian equity markets are in general hugging the flatline in holiday-thinned trade, with Japan offline,” said Patrick Munnelly at TickMill Group.

“The handover from Wall Street was again less than convincing, banking concerns continue to linger, however a decent set of earnings from Apple kept risk appetite afloat ahead of today’s nonfarm payroll release.

“Onshore and offshore China indices managed to post marginal gains after some decent PMI services data came in overnight, with the Hang Seng and Shanghai Composite both trading up around 0.5% on the session.”

Stock markets mixed on quiet day for region

In China, the Shanghai Composite fell 0.48% to 3,334.50, while the Shenzhen Component dropped by .82% to 11,180.87.

Among the biggest losers in Shanghai were CIG ShangHai, which fell 7.97%, while Guanghui Logistics and Guizhou Sanli Pharmaceutical lost 6.73% and 6.66%, respectively.

In Hong Kong, the Hang Seng Index was up 0.5% to 20,049.31.

Country Garden Holdings was up by 5.53%, while Hang Lung PPT and Baidu rose by a respective 4.24% and 3.82%.

Australia's S&P/ASX 200 index managed gains of 0.37% to 7,220.00, with Pilbara Minerals up by 4.02%, Johns Lyng Group up by 3.84%, and Allkem up by 3.75%.

Meanwhile, New Zealand's S&P/NZX 50 index dropped by 0.66% to 11,889.01.

Synlait Milk was down by 3.38%, while Kiwi Property and Skellerup fell by 2.73% and 2.66%, respectively.

In currency markets, the yen was last 0.07% stronger on the dollar at JPY 134.20, as the Aussie advanced 0.47% to AUD 1.4871, and the Kiwi was ahead 0.19% against the greenback to change hands at NZD 1.5892.

Oil prices rebounded, meanwhile, with Brent crude futures last up 1.5% on ICE at $73.59 per barrel, and the NYMEX quote for West Texas Intermediate ahead 1.46% to $69.56.

China’s services sector remains in expansion territory in April

In economic news, China's Caixin services purchasing managers' index (PMI) fell to 56.4 in April from 57.8 in March, reaching the second-highest figure since November 2020 and the fourth month in a row above the 50-point level that separates growth and contraction.

Despite disappointing factory activity earlier in the week, the survey showed expansion in services activity.

“Overall, the strength in China’s services sector probably isn’t enough to counter the slowdown in manufacturing and remain on track for the ‘about 5%’ GDP growth target this year,” said Pantheon Macroeconomics chief China economist Duncan Wrigley.

“Top 100 developer home sales slowed in April, while infrastructure and manufacturing investment growth probably will start to slow, as local governments front-loaded fundraising for these investment projects this year.

“We expect policymakers to provide additional targeted measures for employment, consumption, private investment and foreign investment in the second quarter, while the prospects for a top-up mini-stimulus in the second half are rising.”

Elsewhere, the Reserve Bank of Australia said in its May statement that it still saw "some further tightening of monetary policy" as being necessary to bring down inflation.

The statement came after the central bank’s surprise 25-basis point rate hike to 3.85% on Tuesday.

Policymakers in Canberra lowered their near-term inflation and GDP forecasts, but said they still expected inflation to return to the upper end of the 2% to 3% target range by the middle of 2025.

Indonesia's gross domestic product expanded 5.03% year-on-year in the first quarter, beating Reuters-polled expectations for 4.95%, and faster than the growth of 5.01% recorded in the first quarter of last year.

Singapore's retail sales in March were 4.5% higher than a year ago, coming in at $4.1bn for the whole month, although that was lower than the 11.6% increase seen in February.

Finally on data, headline inflation in the Philippines eased for the third straight month to 6.6% year-on-year, down from 7.6% in March and lower than expectations for a 7% rise.

Reporting by Josh White for Sharecast.com.

SHANGHAI COMPOSITE -15.96 (-0.48%) 3,334.50

RISERS
China Fortune Land +10.13% CNY 2.50
China Publishing Media +10.04% CNY 12.06
Beijing Vastdata Tech +10.03% CNY 20.63
Guangshen Railway +10.03% CNY 3.29
Anhui Transport +10.01% CNY 13.52

FALLERS
CIG ShangHai A -7.97% CNY 60.35
Guanghui Logistics -6.73% CNY 7.34
Guizhou Sanli Pharmaceutical -6.66% CNY 18.51
G-bits Network -5.77% CNY 504.61
Hangzhou Electronic Soul Network Technology -5.58% CNY 47.00

HANG SENG INDEX +100.58 (+0.50%) 20,049.31

RISERS
Country Garden Holdings +5.53% HKD 2.10
Hang Lung PPT +4.24% HKD 14.26
Baidu +3.82% HKD 119.70
China Overseas +3.26% HKD 20.30
Country Garden Services +3.24% HKD 12.10

FALLERS
Haier Smart Home Co -4.91% HKD 24.20
AIA Group -3.43% HKD 81.55
Lenovo Group -3.27% HKD 7.99
Wharf Real Estate -3.09% HKD 42.40
SMIC -2.56% HKD 20.95

S&P/ASX 200 +26.90 (+0.37%) 7,220.00

RISERS
Pilbara Minerals +4.02% AUD 4.40
Johns Lyng Group +3.84% AUD 6.76
Allkem +3.75% AUD 12.44
Liontown Resources +3.64% AUD 2.85
Block +3.35% AUD 93.20

FALLERS
Virgin Money UK -5.5% AUD 2.75
Coronado Global Resources -4.55% AUD 1.575
Whitehaven Coal -3% AUD 6.80
Yancoal Australia -2.95% AUD 5.26
Contact Energy -2.7% AUD 7.20

S&P/NZX 50 -79.54 (-0.66%) 11,889.01

RISERS
NZX +2.65% NZD 1.160
Vista +1.56% NZD 1.30
Sanford +0.98% NZD 4.11
Fletcher Building +0.86% NZD 4.70
Goodman Property +0.71% NZD 2.130

FALLERS
Synlait Milk -3.38% NZD 1.43
Kiwi Property -2.73% NZD 0.890
Skellerup -2.66% NZD 4.750
Serko -2.62% NZD 2.23
Pacific Edge -2.22% NZD 0.4400