ASIA STOCKS pare advance after China data

Asian stocks pared gains after a Chinese manufacturing report signaled persisting weakness in the world’s second-largest economy.

The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was 48.3 in April, matching the median estimate of analysts. While that was higher than the final March figure of 48, the reading remains below the level of 50.

Premier Li Keqiang last week said China isn’t considering “strong” stimulus, and reiterated that economic growth a bit higher or lower than the government’s 7.5% target is within a reasonable range. The government yesterday lowered reserve ratios at some rural lenders.

China’s Shanghai Composite Index lost 0.5%, while the Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong declined 1.3%. The city’s benchmark Hang Seng Index dropped 0.9%.

South Korea’s Kospi index and Taiwan’s Taiex index both lost 0.2%. Japan’s Topix index rose 1% percent and Nikkei added 1.1%, while the New Zealand’s NZX 50 Index gained 0.7%.

Australia’s S&P/ASX 200 Index climbed 0.7% to its highest close since June 2008. The nation’s core consumer prices gained less than economists forecast last quarter, allowing the central bank to extend a period of steady interest rates. The trimmed mean gauge of core prices rose 0.5% from the previous quarter compared with the median forecast of economists for a 0.7% gain.

China Overseas Land declined 3.4%, China Resources Land Ltd. slipped 2.5% and Industrial & Commercial Bank of China Ltd., the nation’s biggest lender by market value, dropped 1.5%.

China Mobile fell 2.5% as net income fell 9.4% to about 25.24 billion yuan ($4 billion) in the first quarter. Profit was expected to be 27 billion yuan, based on the median of analysts estimates.

Among stocks that advanced, Resona gained 2.5% in Tokyo. 

Seibu Holdings Inc., operator of Japan’s biggest hotel chain, jumped 11% on its trading debut on the Tokyo bourse, closing morning trade at 1,682 yen, 5.1% above their initial offering price of 1,600 yen.

Seibu's listing followed several disappointing debuts in recent weeks. Last month, Hitachi Maxell sank 14% below its initial public offering price on its first day of trading. The following day, Japan Display, the world's biggest maker of screens for smartphones and tablets, lost 15% in its debut.

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