STOCK MARKET WATCH - Wednesday, 1 February 2012

[Ghost Dog]

23. Asian Stocks Fall as Stronger Chinese Manufacturing May Lower Easing Odds

Feb. 1 (Bloomberg) -- Asian stocks fell as unexpected growth in Chinese manufacturing stoked speculation the mainland may not ease lending curbs. Weaker U.S. economic data also dimmed the earnings outlook for exporters.

Industrial & Commercial Bank of China Ltd., the world’s biggest lender, slid 1.3 percent in Hong Kong. Li & Fung Ltd. (494), a supplier of toys and clothing to Wal-Mart Stores Inc., fell 1.7 percent. Sumitomo Heavy Industries Ltd. sank 9.6 percent in Tokyo after the machinery maker cut its full-year profit forecast by 28 percent. Shipping stocks gained on speculation rising cargo rates will shore up earnings.

The MSCI Asia Pacific Index (MXAP) slipped 0.3 percent to 122.59 as of 4:40 p.m. in Tokyo, reversing gains of as much as 0.3 percent. About the same number of shares rose and fell in the gauge. In January, the measure posted its biggest monthly advance since September 2010 amid bets China will ease lending curbs, the U.S. economy is improving and Europe is containing its debts crisis...

... Japan’s Nikkei 225 Stock Average added 0.1 percent, while South Korea’s Kospi Index gained 0.2 percent. Australia’s S&P/ASX 200 Index slipped 0.9 percent. India’s BSE Sensitive Index lost 0.6 percent as the nation’s manufacturing growth accelerated, reducing the scope for the central bank to cut interest rates.

China’s Shanghai Composite Index (SHCOMP) sank 1.1 percent, erasing gains of as much as 0.6 percent, on speculation the stronger- than-expected Chinese manufacturing report today reduces the need for further monetary-policy easing. Hong Kong’s Hang Seng Index slipped 0.3 percent.

/... http://www.bloomberg.com/news/2012-02-01/most-asian-stocks-rise-as-greece-optimism-tempers-lower-earnings-forecasts.html

So, markets moved more, these days, by expectations of central bank action or inaction, rather than by indicators of performance of real economies.