Asia stocks edge higher in cautious trade; China PMI in focus – Yahoo Finance
advanced 0.9%, telecom giant China Mobile Ltd. rose 0.6%, and HSBC Holdings PLC added 0.3%. Mainland Chinese banks traded mixed, with both Bank of China Ltd. and Agricultural Bank of China Ltd. up 0.6% in Hong Kong, while China Construction Bank Corp.
New GPIF investment manager drawn to cheap Japan mid-caps – Yahoo Finance
Data compiler Markit said its final purchasing managers’ index for the sector fell to 46.9 in August from 47.8 in July. That was slightly higher than a preliminary reading of 46.5 but left the index well below the 50-point line dividing expansions in activity from contractions. “Sharply falling output led firms to cut back employment, purchasing and stock levels further in August,” said Markit economist Jack Kennedy. “This sort of across-the-board weakness has been a common theme in recent months and there remains very little to suggest any turnaround in fortunes will be imminent.” The weakness in the manufacturing sector adds to pressure on President Francois Hollande as he tries to revive an economy mired in stagnation and fight rampant unemployment.
French manufacturing shrinks at fastest rate in 15 months in Aug – PMI – Yahoo Finance
Nisshin Steel dropped 5 percent after announcing on Friday that it would offer up to 10.7 billion yen of its own shares. Read More Finance execs split on upcoming stock ‘correction’ China shares gain China’s benchmark Shanghai Composite (Shanghai Stock Exchange: .SSEC) jumped 0.8 percent to a more than one-week high, extending gains after rallying 1 percent in the previous session, while Hong Kong stocks enjoyed modest gains following Friday’s 1.5 percent weekly loss. Defense stocks rallied in Shanghai after President Xi Jinping called for military reform and innovation over the weekend. Beijing Aerospace Changfeng jumped over 7 percent while Sichuan Chengfa Aerospace rallied by the daily trading limit of 10 percent. ASX up 0.1% Australia’s benchmark S&P ASX 200 ( ^AXJO ) rose ahead of the central bank’s policy review on Tuesday and quarterly growth figures on Wednesday.
U.S. ECONOMY: The latest update on the labor market due out Friday is expected to show relatively firm conditions. Investor confidence has risen following several months of strong growth in hiring and corporate profits and a series of major corporate acquisitions. ENERGY MARKETS: U.S. benchmark crude for October was down 31 cents at $95.65 in electronic trading on the New York Mercantile Exchange.
Asia Stocks Gain on Stimulus Hopes, Europe Lower – ABC News
GPIF had surprised the asset-management industry this year by dropping many Japanese managers while hiring more stocks in news today foreign firms. It now has nine foreign and five Japanese active equity managers. Foreign managers oversaw 1.48 trillion yen, or 58 percent, of GPIF’s 2.56 trillion yen allocation to actively managed domestic equities at the end of March, up from 1.40 trillion yen, or 37 percent of a 3.73 trillion yen allocation a year earlier. SHIFT TO EQUITIES Under pressure from the government of Prime Minister Shinzo Abe to shift money into higher-risk assets and out of low-yielding Japanese government bonds, GPIF plans to boost the weighting of domestic stocks to more than 20 percent from a current 12 percent target, people with knowledge of the allocation review told Reuters last month. That indicates nearly $100 billion of new money into the Tokyo stock market.