Asia markets closed mixed on Monday, with major indexes in Australia, Japan and South Korea extending gains after the Bank of Japan's (BOJ) surprise move on Friday to adopt negative rates sent stocks higher from Tokyo to New York.
In Japan, the Nikkei 225 jumped 346.93 points, or 2%, to 17,865.23, adding to its 2.8% surge on Friday when the Bank of Japan surprised investors by cutting interest rates to negative territory. The market also rose amid several solid earnings results.
In Japan, banking stocks were mostly down, with major players extending losses from Friday after the BOJ's announcement. A negative interest rate will likely see their profits dented. Mitsubishi UFJ was down 5.5% SMFG fell 7.6%, and Mizuho Financial was down 5.9%
The Hang Seng index in Hong Kong dropped 87.61 points, or 0.5%, to 19,595.50
In Australia, markets retraced some gains as the energy sector, which rose as much as 2% in early trade, pared gains to close up 0.5%, while the financials sector finished up 0.4%
Energy plays traded mixed on Monday, with shares of Santos closing down 3.5%. Woodside Petroleum gave up gains of over 1% to finish lower by 0.1%, and Oil Search was finished up 0.8%
Japan's Inpex gave up gains to close flat and Japan Petroleum gained 1.6%. South Korea's S-Oil was up 4.1%
Chinese energy plays were mostly down. Hong Kong-listed shares of CNOOC down 3.2% and mainland shares of Petrochina closed down 2.8%
Shares of electronics maker Sony closed up 12.4% after the company reported its fiscal third-quarter earnings. Reports said net profit rose 33.5% on-year to 120.1 billion yen ($999.8 million U.S.), beating market expectations.
Reuters reported this morning that Toyota would halt all production at its Japan assembly plants from February 8 to 13 due to a steel shortage, following an explosion at a steel plant operated by one of its affiliates. Production is reportedly said to resume on February 15.
CHINA
China shares fell Monday amid more signs of weakening in the Chinese economy, but markets in the rest of the Asia region rallied a second straight trading day.
The CSI 300 lost 45.04 points, or 1.5%, to 2,901.05, after Chinese officials reported that the country’s manufacturing purchasing managers index fell to 49.4 in January, marking the sixth-consecutive month of contraction and its lowest level since August 2012.
Chinese stock markets are in their last week of trading before the weeklong holiday for the Lunar New Year.
China’s PMI reading was down from 49.7 in December and missed the median forecast of 49.6 by economists polled by The Wall Street Journal. A figure above 50 indicates an expansion in manufacturing activity while a reading below that level points to a contraction.
Some of the biggest losers on the Shanghai index were China Shipbuilding, down 5.2%, Baotou Steel, down 4.7%, and China Railway Group, lower by 3.8%
A private gauge of Chinese manufacturing by Caixin edged up to 48.4 in January, from 48.2 in December, although it indicated contraction as well.
In other markets
In Singapore, the Straits Times Index drooped 26.7 points, or 1%, to 2,602.41
The Kospi in Korea added 12.76 points, or 0.7%, to 1,924.82
Taiwan’s Taiex index gained 11.75 points, or 0.1%, to 8,156.96
In New Zealand, the NZX 50 took on 4.27 points, or 0.1%, to 6,174.49
In Australia, the ASX 200 index improved 38.07 points, or 0.8%, to 5,043.59
