Asia markets slip on China slowdown fears
Tuesday 3:30GMT. Asian bourses came under pressure ahead of China’s leadership meeting, the most anticipated political event of the year for the world’s second-largest economy. The third plenary session will offer President Xi Jinping the opportunity to flesh out his economic vision for the country after a year at the helm. Asian markets dipped ahead of the plenum, with Hong Kong’s Hang Seng Index falling 0.9 per cent. Some 48 of the 50 companies traded in the red, with financial and consumer companies leading declines. The Hang Seng China Enterprises Index fell more than 1 per cent. "We believe policy stance will likely be fine-tuned from the pro-growth easing stance that was used to correct the imprudent liquidity squeeze in June," wrote analysts at Bank of America Merrill Lynch. Among the only two winners on the Hang Seng was HSBC. The bank, which makes up almost 15 per cent of the index, advanced 1.4 per cent after releasing results Monday that showed quarterly pre-tax profit rose 30 per cent, year on year, amid falling loan impairment charges. The other company trading up was Chinese computer group Lenovo, which could do well out of reforms designed to pull the world’s second largest economy up the value chain by emulating the high-tech success of Asian neighbours such as South Korea and Taiwan. Chinese stocks traded in Shanghai also fell, with the Shanghai Composite declining 0.9 per cent. Meanwhile, Japanese shares were weighed down by a profit warning from car-maker Nissan, issued Friday and which sent its shares down 10 per cent after Mondays public holiday. The Nikkei 225 index slipped 0.16 per cent. Struggling electronics maker Sharp also lost a 10th of its value. Australia was one bright spot amid otherwise gloomy trading. The S&P/ASX 200 rose 0.78 per cent, led by gold miners. Perseus Mining rose over 9 per cent and Oceana Gold advanced 4.9 per cent. The rises came as the Reserve Bank of Australia left interest rates on hold at 2.5 per cent. Economists expect US gross domestic product numbers for the third quarter, out Thursday, to show growth slowed to 2 per cent from 2.5 per cent in the previous quarter.