Asian stocks dropped this week, with Japan’s TOPIX falling the most in a month during trading shortened due to holidays, as a private survey showed that Chinese manufacturing contracted a fourth month.
China Resources Land Ltd (華潤置地) lost 9.8 percent as developers retreated in Hong Kong, while Great Wall Motor Co (長城汽車) slumped 23 percent as China’s biggest maker of sports utility vehicles suspended sales of its new flagship Haval H8 after quality complaints.
Gaining this week was Envestra Ltd, which rose 16 percent as billionaire Li Ka-shing’s (李嘉誠) Cheung Kong Group (長江實業) made a cash bid valuing the gas distributor at A$2.4 billion (US$2.3 billion).
The MSCI Asia Pacific Index retreated 0.4 percent to end the week at 137.91, while Japan and Hong Kong — the world’s second and third-largest equity markets — posted the biggest declines of the year among the 24 developed markets tracked by Bloomberg.
In Taipei, the TAIEX closed down 0.46 percent, or 41.21 points, at 8,889.69 on Friday compared with 8,867.32 on May 2.
On Friday, Taiwan Semiconductor Manufacturing Co (台積電) rose 0.42 percent to NT$120 and HTC Corp (宏達電) dropped 2.95 percent to NT$164.5.
Overseas investors sold US$345 million more Taiwanese stocks than they bought this week, following 12 consecutive weeks of net purchases, exchange data show.
A private HSBC Holdings PLC and Markit Economics survey showing Chinese factory activity contracted outweighed an unexpected gain in exports and imports for the world’s second-biggest economy last month. Data on Friday showed that China’s inflation grew at the slowest pace in 18 months last month.
Hong Kong’s Hang Seng Index fell 1.8 percent this week and the Shanghai Composite Index slid 0.8 percent in a fourth week of decline.
China Resources Land slumped to HK$14.30, as China Overseas Land & Investment Ltd (中國海外發展有限公司) fell 4.6 percent to HK$18.04.
Casino shares fell along with developers in Hong Kong after Macau police made arrests tied to the use of a card-swiping device from China UnionPay Co (中國銀聯) amid concern that illicit funds are being funneled from China to casinos in the territories. MGM China Holdings Ltd (美高梅中國控股) slid 6 percent to HK$25.65, as Galaxy Entertainment Group Ltd (銀河娛樂集團) lost 6.7 percent to HK$58.50.
In Tokyo, the TOPIX fell 1.4 percent this week, extending this year’s slump to 11 percent, as investors weighed whether Japanese Prime Minister Shinzo Abe and the Bank of Japan can foster a sustained recovery. Trading this week was shortened by the Golden Week holidays.
Elsewhere in Asia, Australia’s S&P/ASX 200 Index added less than 0.1 percent, New Zealand’s NZX 50 Index fell 1.5 percent in its largest decline this year, Singapore’s Straits Times Index was little changed and the KOSPI lost 0.2 percent.
The Bloomberg Asia Pacific Internet Index fell 4.2 percent this week to a five-month low as technology shares slumped around the world. Rakuten Inc lost 9.9 percent to ￥1,228 in Tokyo, while Tencent Holdings Ltd (騰訊), Asia’s biggest Internet company, slid 3.4 percent to HK$478.80 in Hong Kong.
The MSCI Asia Pacific Index traded at 12.6 times estimated earnings on Friday, compared with 15.9 for the Standard & Poor’s 500 Index, data compiled by Bloomberg show. Of the companies on the gauge that reported results since April 1 and for which Bloomberg had estimates, 51 percent beat profit projections.
In other markets on Friday:
Manila rose 1.21 percent, or 82.05 points, from Thursday to 6,847.26.
Mumbai rose 2.91 percent, or 650.19 points, to close at 22,994.23 points after touching a fresh lifetime high of 23,048.49 points during the day’s session.
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