Asian Shares Mixed As Chinese Data Disappoints

Asian shares ended mixed on Monday as banking worries swirled and Chinese industrial profit data disappointed. A cautious undertone prevailed after Deutsche Bank shares fell heavily on Friday on the lender’s surging cost of default cover.

German Chancellor Olaf Scholz offered reassurances about the bank, helping offer some respite to investors worried about the spillover effect of monetary policy shifts.

Investors also awaited more reassurances of stability from regulators and officials to stave off financial contagion.

Chinese shares closed lower as Sinopec posted disappointing earnings and data showed China’s industrial profits slumped in the first two months of 2023 from the year before.

The downside remained somewhat limited after International Monetary Fund managing director Kristalina Georgieva said China is showing signs of a robust economic recovery.

The benchmark Shanghai Composite Index dropped 0.4 percent to 3,251.40. Hong Kong’s Hang Seng Index tumbled 1.8 percent to 19,567.69.

Japanese shares eked out modest gains as a weaker yen helped offset declines in financial shares. The Nikkei 225 Index rose 0.3 percent to 27,476.87, while the broader Topix closed 0.3 percent higher at 1,961.84.

Uniqlo store operator Fast Retailing rose about 1 percent. Automaker Honda Motor gained 0.6 percent and Suzuki Motor climbed 1.4 percent as the yen pulled back from a nearly two-month high versus the dollar. Chipmaking equipment maker Tokyo Electron led losses to close 2.5 percent lower.

Seoul stocks ended slightly lower on renewed concerns over the health of the global financial system. The Kospi slipped 0.2 percent to 2,409.22.

Hyundai Motor, Samsung Electronics and SK Hynix fell 1-2 percent, while Korea Electric Power Corp. rallied 2.5 percent and SK Innovation soared 4.5 percent.

Australian markets finished marginally higher after suffering losses in the previous two sessions. Sentiment was helped after three regional Fed bank presidents said the U.S. banking system was not facing a liquidity crisis.

Financials posted broad-based gains, while fuel supplier Ampol declined 1.2 percent after it flagged a hit to gasoline production at its refinery in Queensland.

Across the Tasma, New Zealand’s benchmark S&P/NZX 50 Index rose 0.3 percent to settle at 11,612.86.

U.S. stocks closed Friday’s session higher after a volatile trading session.
Investors shrugged off data showing that durable goods orders unexpectedly fell by 1 percent in February from the month before.

The Dow edged up 0.4 percent, the tech-heavy Nasdaq Composite gained 0.3 percent and the S&P 500 added 0.6 percent.

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