Hong Kong (BBN)-Asian stocks slid after China reported the world’s second-largest economy grew in line with the government’s target. Technology firms led declines.
TPK Holding Co. a supplier of touch screens to Apple Inc., retreated 4.9 percent in Taipei, reports Bloomberg.
Iluka Resources Ltd. (ILU) led materials shares higher, climbing 3.9 percent in Sydney, after the world’s biggest zircon producer reported production of the mineral topped estimates.
Rio Tinto Group (RIO) gained 1.3 percent after iron-ore output surged in the second quarter.
Mirae Asset Securities Co. slumped 15 percent in Seoul, leading declines on the regional gauge, after saying it will buy a stake in Mirae Asset Life Insurance.
The MSCI Asia Pacific Index (MXAP) lost 0.1 percent to 146.97 as of 2:24 p.m. in Hong Kong, after rising as much as 0.1 percent.
China’s economic growth rate accelerated to 7.5 percent in the second quarter from a year earlier, a report showed today. JPMorgan Chase & Co. yesterday said second-quarter profit beat analysts’ estimates and Goldman Sachs Group Inc. (GS) reported an unexpected increase in earnings.
“The numbers are in line with the view that Chinese growth is picking up into the second half of this year,” Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages $131 billion, said by phone.
“All the signs point to growth stabilizing. Hard-landing fears continue to be misplaced.”
Federal Reserve Chair Janet Yellen indicated in testimony before U.S. lawmakers yesterday that stimulus is still required, as a separate Fed report noted valuations of some smaller social-media and biotechnology stocks appear “substantially stretched.”
A “high degree” of monetary policy accommodation continues to be appropriate, Yellen said in her semi-annual address to the Senate Banking Committee.
REGIONAL GAUGES
Japan’s Topix index, South Korea’s Kospi index and New Zealand’s NZX 50 Index all closed little changed. Australia’s S&P/ASX 200 Index rose 0.1 percent.
Iluka gained 3.9 percent to A$8.53 and Rio Tinto advanced 1.3 percent to A$63.94.
Singapore’s Straits Times Index added 0.3 percent and India’s S&P BSE Sensex Index advanced 0.2 percent. Taiwan’s Taiex Index lost 0.9 percent as TPK sank 4.9 percent to NT$251.
Hong Kong’s Hang Seng Index gained 0.1 percent and the Hang Seng China Enterprises Index (HSCEI) of mainland Chinese stocks listed in the city slipped 0.4 percent. The Shanghai Composite Index declined 0.1 percent.
CHINA DATA
China’s second-quarter GDP growth of 7.5 percent compared with 7.4 percent in the previous three months. Other data showed retail sales gained 12.4 percent in June from a year earlier and industrial production jumped 9.2 percent.
The MSCI Asia Pacific Index traded at 13.5 times estimated earnings at the last close compared with 16.6 for the S&P 500, according to data compiled by Bloomberg.
Futures on the S&P 500 were little changed today after the U.S. equities benchmark yesterday declined 0.2 percent yesterday.
Huadian Power International Corp. surged 9.6 percent to HK$5.70 in Hong Kong, the highest since 2007, after the mainland utility said it expects first-half profit to jump.
Mirae Asset Securities sank 15 percent to 42,050 won in Seoul after the company said it will buy a stake in Mirae Asset Life Insurance for 320.2 billion won ($310 million) from Mirae Asset Capital.
ICICI Bank Ltd. gained 2.7 percent to 1,432.40 rupees and State Bank of India advanced 1 percent to 2,543 rupees.
India’s central bank yesterday said it will allow lenders to sell long-term bonds exempted from reserve requirements to boost funding for infrastructure and housing.
BBN/JF-16July14-2:50pm (BST)
