Asian stocks fell broadly on Thursday as weakness in tech stocks following the overnight pullback by the tech-heavy Nasdaq overshadowed positive manufacturing data from China.
Chinese stocks fell as investors booked some profits in recent outperformers. The benchmark Shanghai Composite index dropped 20.67 points or 0.62 percent to 3,317.19 while Hong Kong's Hang Seng index was down as much as 1.5 percent in late trade following the U.S. tech selloff.
The manufacturing sector in China continued to expand in November, and at a faster pace, the National Bureau of Statistics said with a PMI score of 51.8. That beat forecasts for 51.4 and was up from 51.6 in October.
Japanese shares hit a three-week high as the dollar firmed up against the yen and gains in the financial sector offset weakness in tech shares. There were also hopes that the Bank of Japan will buy more exchange-traded funds.
The Nikkei average rose 127.76 points or 0.57 percent to finish at 22,724.96 while the broader Topix index closed 0.33 percent higher at 1,792.08.
Banks Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial rose about 1 percent each while brokerage Nomura Holdings jumped more than 3 percent. Semiconductor equipment manufacturer Tokyo Electron declined 1.1 percent.
Shares of Oriental Land Co. jumped 3.6 percent on a Nikkei report that the operator of Tokyo Disneyland will invest more than 300 billion yen, or $2.7 billion, to upgrade and expand its resort in Japan.
On the economic front, Japan's industrial production returned to growth in October but the pace of growth fell short of estimates, a government report showed. Housing starts fell more than expected in the month.
Australian shares retreated, dragged down by banks after the government said it will hold a royal commission inquiry into its banking and financial sector. Investors largely ignored encouraging building approvals and private sector credit data.
The benchmark S&P/ASX 200 index dropped 41.20 points or 0.69 percent to 5,969.90 while the broader All Ordinaries index ended down 38.90 points or 0.64 percent at 6,057.20.
Lender ANZ lost 1.1 percent and Commonwealth fell 1.9 percent while mining heavyweights BHP Billiton and Rio Tinto ended down over 1 percent each. Gold miners Evolution Mining, Regis Resources and Newcrest tumbled 2-3 percent.
Gaming machine maker Aristocrat Leisure slumped 6.8 percent after it agreed to buy Seattle-based Big Fish Games for US$990 million in cash. AWE soared as much as 23 percent after a Chinese state-owned company made a $430 million takeover offer for the oil and gas group.
South Korea's benchmark Kospi fell 36.53 points or 1.45 percent to 2,476.37 after the country's central bank raised interest rates for the first time in more than six years, saying there is a risk of financial imbalances accumulating.
The 25 bps rate hike was a surprise as forecasters had expected no change for a 14th straight month.
New Zealand shares rose notably as investors reacted to the MSCI index reweightings. The benchmark S&P/NZX-50 index climbed 44.86 points or 0.55 percent to finish at 8,186.82.
Business confidence in New Zealand tumbled to an eight-year low in November amid uncertainty around the new Labour government, an ANZ Bank survey showed today.
Malaysia's KLSE Composite index was marginally lower. The nation's producer price index for local production climbed 4.7 percent year-over-year in October, slower than the 6.0 percent rise in September, official data showed.
Overnight, U.S. stocks ended mixed as third-quarter GDP numbers marked an improvement on second-quarter growth and traders digested outgoing Fed Chair Janet Yellen's testimony before the Congressional Joint Economic Committee.
The Dow rose 0.4 percent as Yellen painted a generally upbeat view of the economy and the latest Fed Beige Book showed that price pressures have improved since the last report.
The S&P 500 edged down marginally while a dramatic rotation out of high-octane tech stocks saw the Nasdaq Composite plunging as much as 1.3 percent.
by RTT Staff Writer
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