Today emerging-market stocks dropped to a 15-week low, led by technology companies and raw-material producers. Chinese shares rose after a manufacturing gauge topped estimates, Bloomberg reports.
South Korea’s Kospi index fell 0.5 percent. Samsung, which competes with Apple Inc., lost 2.1 percent, bound for the lowest close since July 2012. Apple sold a record of more than 10 million iPhones the first weekend two new versions hit stores, helping Chief Executive Officer Tim Cook in a push to narrow Samsung’s lead in bigger-screen smartphones.
Posco sank the most since September 2011 on concerns of further slowdown in China and falling steel product prices, said Kim Hyun Tae, an analyst at KB Investment & Securities Co.
Hyundai Motor Co., South Korea’s largest carmaker, and affiliate Kia Motors Corp. fell at least 2.1 percent after their workers’ unions announced partial strikes.
The Shanghai Composite Index added 0.7 percent as shipbuilders rose.
The MSCI Emerging Markets Index slid 0.2 percent to 1,038.04 at 1:27 p.m. in Hong Kong, heading for the lowest close since June 5. China’s preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 50.5, compared with the median estimate of 50 in a Bloomberg News survey of analysts and August’s final reading of 50.2.
“China’s data today is not enough to boost investors’ confidence on the outlook of the economy.” Akbar Syarief, a fund manager at PT MNC Asset Management, said by phone from Jakarta today. “Investors still wants the Chinese government to provide stimulus for its economy.”
About $574 billion was wiped off the value of global equities yesterday after China’s Finance Minister Lou Jiwei damped speculation the government will boost economic stimulus.
The emerging-markets stock measure has risen 3.5 percent this year and trades at 11 times 12-month estimated earnings, according to data compiled by Bloomberg. The MSCI World Index has advanced 4.1 percent and is valued at a multiple of 15 times. The measure for developing markets has retreated 5.8 percent from its highest close this year on Sept. 3. Seven out of 10 industry groups slid today, led by technology stocks and raw-material producers. Tencent Holdings Ltd., Asia’s largest Internet company, sank to the lowest level since June 30.
The Shanghai Composite rose the most since Sept. 12 as China Shipbuilding Industry Co. rose 2.9 percent and China CSSC Holdings Ltd. jumped 7.4 percent. Poly Real Estate Group Co. led gains by property developers after the 21st Century Business Herald said the nation’s four biggest banks may loosen criteria for mortgage lending.
Improving manufacturing will ease concern about a slowdown in the economy after data last week showed foreign direct investment dropped to a four-year low and home prices fell in all but two cities tracked by authorities.
The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong added 0.2 percent, halting a three-day loss. The Jakarta Composite Index fell 0.6 percent as investors brace for an increase in subsidized fuel prices which would curb corporate earnings growth, MNC Asset Management’s Syarief said. Equity gauges in Taiwan, India and the Philippines lost at least 0.3 percent.
