By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Chinese stocks rose, and South Korean
stocks retreated Monday, as cautious investors looked ahead to a
slew of data expected to reaffirm an economic slowdown in
China.
The Shanghai Composite climbed 1%, and Hong Kong's Hang Seng
Index was up 0.3%, while Australia's S&P/ASX 200 eased 0.1%,
and South Korea's Kospi fell 0.7%.
Japanese markets were closed for a holiday.
"We could see some nervous trading ahead of Chinese economic
data today and a testimony to Congress by [Federal Reserve]
Chairman [Ben] Bernanke later in the week," said Rivkin Securities
global analyst Tim Radford, adding that the Chinese data "could
arouse fears surrounding slowing economic growth."
China's gross domestic product expansion is expected to slow to
7.5% in the second quarter from the year-earlier period, compared
with first-quarter growth of 7.7%, according to estimates compiled
by Reuters. A slew of other data, including retail sales and
industrial output for June, are also expected to ease from levels
seen in May.
The gains in Shanghai and Hong Kong markets came as China's
Xinhua news service -- which had late last week cited Finance
Minister Lou Jiwei as tipping 7% growth for 2013 -- corrected its
story over the weekend. The report said the minister had actually
indicated the economy would expand 7.5% this year, in line with the
government's official target.
Shares of Chinese banks edged higher in Hong Kong, with China
Construction Bank Corp. (CICHY) rising 0.6%, and Industrial &
Commercial Bank of China Ltd. (IDCBY) gaining 0.4%.
In Shanghai, China Citic Bank Corp. (CHCJY) added 1.9%, Bank of
Communications Co. (BCMXY) rose 1.5%, and property major Gemdale
Corp. added 1.9%.
The advance came after data released by the People's Bank of
China after the market close on Friday showed a slowdown in June in
total social financing -- the broadest measure of bank loans and
bond issuances -- from the May level.
Asia's stock performance also followed a third straight week of
gains for U.S. equities cemented on Friday, lifting the Dow Jones
Industrial Average (DJI) and the Standard & Poor's 500 Index to
record highs.
Banks paced the drop in Seoul, with Shinhan Financial Group Co.
(SHG) losing 2%, and KB Financial Group Inc. (KB) shedding
1.7%.
In Sydney, weakness in the mining sector overwhelmed modest
gains for other some stocks ahead of the Chinese data.
BHP Billiton Ltd. (BHP) fell 1.1%, and Fortescue Metals Group
Ltd. (FSUMY) tumbled 3%, while the recently battered shares of
Billabong International Ltd. (BBG.AU) further rebounding 5.2%.
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