Asian share markets lacklustre, profit-taking hits Hong Kong

Hong Kong retreated on profit-taking Tuesday after a near-15 percent rise over eight days, while Tokyo was hurt by a stronger yen as Asian investors await the release of key data later in the week.

The tepid performance among most Asian markets follows losses on Wall Street as US investors prepare for the corporate earnings season to get under way.

Hong Kong ended down 1.62 percent, or 454.85 points, at 27,561.49 but Shanghai closed up 0.34 percent, or 13.85 points, at 4,135.57.

Tokyo was flat, edging up 3.22 points to close at 19,908.68, and Sydney fell 0.23 percent, or 13.7 points, to close at 5,946.6.

But Seoul rose 0.61 percent, or 12.80 points, to 2,111.72.

With few catalysts to spur business, traders took the opportunity to cash in before key events this week, including US retail sales data, Chinese growth figures and a European Central Bank (ECB) meeting.

“Clearly, investors are waiting for the next set of clues of how the global economy is evolving,” said Matthew Sherwood, head of investment markets research in Sydney at Perpetual Ltd.

“The data absence overnight meant they decided to take profits even though the US reporting season is set to move into a higher gear in the next two days,” he told Bloomberg News.

On Wall Street Monday the Dow eased 0.45 percent, the S&P 500 fell 0.46 percent and the Nasdaq dropped 0.15 percent.

Hong Kong took a step back for the first time after an eight-session run that was fuelled by mainland Chinese investors seeking out relatively cheap equities after a year-long surge in Shanghai.

Retail traders north of the border have been on an investment binge in hopes the government will unveil economy-boosting measures following a series of weak data over recent months.

Close attention will be paid to Wednesday’s first-quarter growth data out of Beijing, with another weak figure likely to spur more equity purchases.

A survey of economists by AFP has forecast growth of 6.9 percent in January-March, which would be the weakest quarterly result since the start of 2009 at the height of the global financial crisis.

– Yen ‘too weak’ –
On currency markets the euro resumed its downward trend, hovering near 12-year lows ahead of the US retail sales data, which if strong could revive talks of an early Fed rate rise.

The single currency was at $1.0550 compared with $1.0571 in New York. It has slipped from $1.0620 in Asia at the end of last week.

It fell through the $1.05 mark in March for the first time since 2003 on talk of a Fed rise as the ECB embarks on a huge bond-buying stimulus programme.

The euro was also at 126.45 yen against 127.02 yen in New York.

The dollar eased to 119.84 yen from 120.15 yen in New York and well off the 120.44 yen in Tokyo earlier Monday.

Investors moved into the yen after an adviser to Japanese Prime Minister Shinzo Abe said the unit had slid enough. In a television interview Monday evening, economic policy adviser Koichi Hamada said the yen was “considerably weak”, with 105 to the dollar a more appropriate level.

He added there was no need for the Bank of Japan to expand its massive easing programme, which has helped lop about 50 percent off the yen’s value since early 2013.

Oil prices edged higher. US benchmark West Texas Intermediate for May delivery gained 66 cents to $52.57 while Brent crude for May rose 60 cents to $58.53.

Gold fetched $1,192.75 against $1,199.90 late Monday.

In other markets:

— Taipei fell 0.25 percent, or 24.30 points, to 9,642.22.

Taiwan Semiconductor Manufacturing Co shed 2.04 percent to Tw$144.0 while Hon Hai Precision Industry was 0.97 percent higher at Tw$93.8.

— Wellington gained 0.12 percent, or 27.79 points, to 5,882.11.

Chorus was up 1.18 percent at NZ$2.995 and Air New Zealand rose 0.91 percent to NZ$2.775.

— Manila slipped 0.21 percent, or 16.76 points, to 8,056.49.

— Mumbai and Bangkok were closed for public holidays