Asian Shares Mixed After China PMI, Higher Money Market Rates


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Asian shares were mixed as strong manufacturing data in China competed with fears of higher money market rates.

HSBC's "flash" reading of the October China manufacturing Purchasing Managers' Index rose to a seven-month high of 50.9 from September's final reading of 50.2 and beat expectations for an increase to 50.4. The result also remained above the 50 level, indicating growth rather than contraction.

People's Bank of China central bank decided not to inject cash into the system for the third straight session. The seven-day repo rate rose to around 4%, near the previous session's three-month high.

Chinese real estate developers fell after state news agency Xinhua reported that Beijing authorities may bar developers from selling homes if they don't accept the government's price guidance.

In other parts of the region, New Zealand recorded a 199 million New Zealand dollar (US$168 million) goods, or merchandise, trade deficit for September and a NZ$1.5 billion deficit for the year ended Sept. 30, Statistics New Zealand said. August's monthly trade deficit was revised to $1.23 billion from the $1.19 billion originally reported. The median expectation in a Wall Street Journal survey of 10 economists was for a deficit of NZ$800 million in September, and a deficit of NZ$2.1 billion for the year.

Japanese banks came under pressure after Bank of Japan's Financial System Report said that financials risk losing trillions of yen if interest rates rise.

The Nikkei ended up 0.42% at 14,486.41, the Hang Seng down 0.71% at 22,835.82 and the Straits Times up 0.41% at 3,217.95.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities

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