By Chao Deng
Stocks in Australia and mainland China rose but fell in Hong
Kong, after a modest improvement in Chinese manufacturing activity
soothed some concerns about the country's economic growth.
Australia's S&P/ASX 200 rose 1.0% to 5415.7, while the
Shanghai Composite Index rose 0.9%.
In Sydney, Commonwealth Bank of Australia and Westpac Banking
both advanced 1.1%, while National Australia Bank rose 1.2%. The
major iron-ore producers also gained, with BHP Billiton and Rio
Tinto each gaining 0.3%, although smaller producers such as BC Iron
and Atlas Iron slid, ending down 1.1% and 4.7%, respectively.
The Australian dollar continued to slide, hitting a seven-month
low at US$0.8855 during Asian trade before rebounding to US$0.8912
at 0615 GMT.
Australian stocks fell before the release of the preliminary
HSBC China Manufacturing Purchasing Managers Index. The gauge rose
to 50.5 in September, compared with a final reading of 50.2 in
August, HSBC Holdings PLC said. A reading above 50 indicates
expansion from the previous month, while a reading below 50
indicates contraction.
"The Chinese release appeared to flip broader sentiment to the
upside. Some of the big yield stocks, including the banks and
telcos, rallied with gusto," said William Leys, a sales trader at
CMC Markets in Sydney.
China is Australia's largest trading partner so worries over the
pace of China's economic growth weigh on the Australian dollar and
iron-ore producers.
Still, worries over China's slowing growth and weighed on
markets elsewhere. The Hang Seng Index slipped 0.5% to
23837.07.
Mizuho economist Shen Jianguang said there were few signs of
improvement in September's economic activity, despite the increase
in HSBC's flash PMI. "Investment is still slowing and home sales
continue to drop," he said, adding that weak commodity prices still
pointed to sluggish demand.
Losses in Alibaba Group Holding on the e-commerce giant's second
day of trading in the U.S. pressured tech stocks in Asia. In Hong
Kong, Tencent Holdings fell 1.8% and software firm Kingsoft slumped
0.7%.
Markets in Tokyo were closed for a national holiday.
Robb M. Stewart contributed to this article.