Asia Pacific Market: Stocks end higher on Monday

Asia Pacific market ended slight higher on Monday, August 05, 2013, aided by data showing an improvement in China's services-sector activity in July. But move on the upside were limited after weaker than expected US nonfarm payrolls data for July sparked worries about the health of the world's biggest economy.

Data released on Monday by HSBC put its China's Services Business Activity Index for July at 51.3, staying above the 50-point threshold that indicates an improvement in activity, and unchanged from the level seen in the June survey. The figure followed the National Bureau of Statistics and the China Federation of Logistics and Purchasing of the service-sector survey over the weekend, which showed the July non-manufacturing index accelerated to 54.1 from 53.9 in June.

Cai Jin, vice chairman of the CFLP, said the slight increase indicated a good start for China's economy in the second half of the year. Although challenges remain, China's economy has the foundations for steady growth, Cai said.

The US Labor Department said on Friday (August 2, 2013) that the economy added 162,000 jobs in July, lower than market expectation of around 180,000 in payrolls. The unemployment rate slipped to 7.4% from 7.6%, but that was partly due to more people leaving the labor force.

Turnover across the region was relatively muted as investors' opted wait and see attitude ahead of key data from both side of the Atlantic later today. investors were due to receive a report on U.S. service-sector activity for July and the July euro-zone composite PMI reading later Monday.

Among Asian market bourses, Japanese stocks retreated on profit taking after posting strong gains over the last two sessions, with several financial and technology shares declined after a weak US jobs report Friday. The Nikkei Stock Average lost 1.44% and the broader Topix index shed 0.96%.

Australian stock market declined for the first time in eleven sessions on Monday following lackluster domestic retail sales data and ahead of an interest-rate decision Tuesday by the Reserve Bank of Australia, with realty, financial, and retailer stocks led declines. The benchmark S&P/ASX200 fell 0.1% to 5111.30. Investors showed little reaction to Prime Minister Kevin Rudd's decision to call elections on Sept. 7.

Australian Bureau of Statistics said on Monday that Australian retail turnover was relatively unchanged (0.0%) in June 2013, seasonally adjusted, following a rise of 0.2% in May 2013.

Paladin Energy sank 27.50% to A$0.73, extending Friday's drop after the uranium miner ended talks to sell a minority interest in a Namibian mine, and raised funds through a private placement of shares.

Virgin Australia Holdings declined 4.4% to A$0.44 after the carrier warned of a yearly loss between A$95 million and A$110 million due to competition, a difficult economy, carbon taxes and restructuring costs.

China stock market ended sharp higher for the fifth day in a row, with shares in financial, mining, energy companies drove rally on signs of easing control on their refinancing and as official data released over the weekend showed monthly service-sector activity improved in China. The Shanghai Composite advanced 1.04% to 2050.48, with turnover of 73.27 billion yuan.

Hong Kong shares edged higher after data showing an improvement in China's services-sector activity. The Hang Seng Index ended up 31 points to 22,222, off an intra-day low of 22,193 and high of 22,273. Turnover reduced slightly to HK$42.1bn from HK$49.1bn on Friday.

China Dairy players were mostly higher in HK after China and Russia reportedly banned milk products from Fonterra Cooperative Group after the New Zealand dairy producer said this weekend it found bacteria that could result in botulism in some products. Both Biostime and China Modern Dairy shot up 9.7% to HK$43.35 and HK$2.59.

Indian market ended slight higher after paring intraday gains. The S&P BSE Sensex was provisionally closed at 19,188.82, up 24.80 points or 0.13%. It touched a high of 19,306.51 and a low of 19,141.68 in trade today.

Financial Technologies (India) gained 11% in volatile trading after slumping 73 percent over the previous two sessions. Power Grid Corporation of India shares gain 2.1% after Friday's 11.2 percent fall after the company's secondary share announcement was seen as overdone. However, shares in Bharat Heavy Electricals declined 18.6% after the power equipment maker posted nearly 49% fall in net profit in its April-June earnings.

Elsewhere, New Zealand's NZX50 added 0.14%, Taiwan's Taiex rose 0.48%, Indonesia's Jakarta Composite rose 0.36% and Malaysia's KLSE Composite added 0.15%. South Korea's KOSPI lost 0.37% and Singapore's Strait Times shed 0.38%.

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