Chinese stocks lost ground on Wednesday after disappointing October figures for new lending outweighed better industrial output figures than expected and data showing slowing declines in exports.
The Shanghai Composite Index ended down 0.1 per cent at 3,175.19 after eight-consecutive days of gains and reaching a three-month closing high on Tuesday.
The loans data helped drive bank stocks lower. Merchants Bank lost 2.1 per cent to Rmb18.29 and China Citic Bank Corporation fell 0.8 per cent to Rmb6.38.
Chongqing Changan Automobile jumped by its 10 per cent daily limit to Rmb15.42 on news its parent company had agreed to acquire auto-related assets from Aviation Industry Corp, heeding government calls to speed consolidation in the fragmented industry.
HSBC led the Hong Kong market to its highest close in 15 months.
The bank’s shares gained 6 per cent to HK$94 after announcing the first improvement for three years in losses on US consumer credit. It also said third-quarter profits were “significantly ahead” of a year ago.
Chipmaker SMIC jumped 73.7 per cent to HK$0.66 on news it had settled a lawsuit with rival TSMC.
The Hang Seng Index advanced 1.6 per cent to 22,627.21, its fourth-straight session of gains.
Banking stocks elsewhere in the region also performed well.
In Tokyo, Mitsubishi UFJ Financial Group gained 1.4 per cent to Y510 and Sumitomo Mitsui 1 per cent to Y3,200 even as the Nikkei 225 Average ended flat at 9,871.68.
A rise in the yen against the dollar offset the impact of unexpectedly positive domestic machinery orders figures for September. The broader Topix index slipped 0.2 per cent to 872.29.
Japan Airlines was in focus, rising 4.8 per cent to Y105, after reports that state-owned Development Bank of Japan would offer a Y100bn line of credit as part of a government rescue package for the airline ahead of its first-half earnings report tomorrow.
Buoyed by the machinery orders data, Sumitomo Heavy Industries climbed 3.6 per cent to Y431 and Daikin Industries improved 2.5 per cent to Y3,250 yen. Industrial robot maker Fanuc rose 0.3 per cent to Y7,640.
In Seoul, SK C&C was in focus during its first day of trading. Shares closed at Won35,650, far above the IPO price of Won30,000.
Elsewhere, LG Display rose 2.2 per cent to Won30,000. Korean Air gained 2.5 per cent to Won47,500 after the company said its monthly outbound cargo traffic volume hit a record in October, thanks to rising technology exports.
South Korea’s Kospi index rose 0.7 per cent to 1,594.82. However, turnover dipped to its lowest level this year at Won3,200bn.
The mood in Mumbai was buoyed by yesterday’s data from China and hopes that US interest rates will remain near zero for a while. The BSE index gained 2.5 per cent to 409.04.
Tata Motors rose 4.7 per cent to Rs621.55 while rival Mahindra & Mahindra advanced 2.9 per cent to Rs1,032.20 after October car sales rose the fastest in more than two years, aiding hopes the industry was back on track for growth.
Chanda Kochchar, ICICI Bank‘s chief executive, said the group’s bad loans had peaked, sending its shares up 3.4 per cent to Rs924.65.
Metals stocks also performed well on improving outlook for base metal prices. Sterlite Industriesclimbed 6.5 per cent to Rs858.05 while Tata Steel rose 4.3 per cent to Rs526.35 and Hindalco added 3.9 per cent to Rs131.85.
