Hong Kong Stocks Decline After China Manufacturing Data

Hong Kong stocks dropped, with the benchmark index headed for its biggest drop in two weeks, after a Chinese manufacturing gauge slumped. China Petroleum & Chemical Corp. jumped on a plan to seek private investors.

Industrial & Commercial Bank of China Ltd., the nation’s largest lender, slid 2.5 percent as financial companies led losses. Tencent Holdings Ltd. (700), Asia’s largest Internet company by market value, slid 2.7 percent after Facebook Inc. agreed to buy mobile-messaging startup WhatsApp Inc. China Petroleum, also known as Sinopec, soared 7.1 percent after saying it’s seeking investors for as much as 30 percent of its oil retail unit.

The Hang Seng Index lost 1.4 percent to 22,358.80 as of 10:23 a.m. in Hong Kong, after rising as much as 0.4 percent. About five stocks declined for each that rose on the 50-member gauge, with trading volume more than double the 30-day average. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, retreated 1.4 percent to 9,918.90.

The preliminary February reading of 48.3 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with January’s final figure of 49.5 and the 49.5 median estimate in a Bloomberg News survey of 17 economists. A number below 50 indicates contraction.

(Source: Bloomberg)

S&P 500 Rises Toward Record as Forest Labs Offsets Data

Most U.S. stocks rose, with the Standard & Poor’s 500 Index (SPX) climbing to within eight points of a record, as a $25 billion deal to acquire Forest Laboratories Inc. offset slower growth in New York-area manufacturing.

Forest Laboratories surged 28 percent after Actavis Plc agreed to buy the maker of the Alzheimer’s drug Namenda. Coca-Cola Co. dropped 3.8 percent as fourth-quarter profit fell. D.R. Horton Inc. and PulteGroup Inc. lost more than 1.2 percent as a gauge of homebuilder confidence declined by the most on record in February amid bad weather that hurt sales.

The S&P 500 added 0.1 percent to 1,840.76 at 4 p.m. in New York, near its record close of 1,848.38 set last month. The Dow (INDU) Jones Industrial Average fell 23.99 points, or 0.2 percent, to 16,130.40. About 6.3 billion shares changed hands on U.S. exchanges, in line with the three-month average. The U.S. market was closed yesterday for the Presidents’ Day holiday.

The S&P 500 finished its best week of the year within 0.5 percent of its all-time high on Feb. 14, amid better-than-forecast earnings and continued confidence in the strength of the world’s biggest economy.

(Source: bloomberg)               

Asian Stocks Outside Japan Advance After China’s Lending Data

Asian stocks outside Japan gained, with a regional gauge heading for an almost three-week high, after a report showing China’s new credit increased to a record in January. Japan’s Topix index fell after the nation’s economic growth missed estimates and the yen strengthened.

Rio Tinto Group (RIO), a mining company that gets about 32 percent of sales from China, rose 1.6 percent in Sydney. Newcrest Mining Ltd., Australia’s biggest gold producer, advanced 3.2 percent as bullion’s price rose to a three-month high. Rakuten Inc., a online retailer controlled by billionaire Hiroshi Mikitani, dropped 9.5 percent in Tokyo after announcing plans buy the Viber Internet messaging and calling service for $900 million.

The MSCI Asia Pacific excluding Japan Index added 0.3 percent to 457.27 as of 9:54 a.m. in Tokyo. The measure climbed 2.7 percent last week as trade data from China beat estimates and Janet Yellen’s first official address as head of the Federal Reserve buoyed optimism about the U.S. economy. The broader MSCI Asia Pacific Index rose 0.1 percent to 135.31, paring gains of as much as 0.5 percent.

(Source: Bloomberg)