Asia-Pacific stock indices declined amid declining profits of the PRC companies

Moscow. November 27. Stock indices in the Asia-Pacific region fall on Friday on data on the reduction of profits of Chinese industrial businesses, Bloomberg reported.

The composite stock index MSCI Asia Pacific during the trades fell by 0.8%.

The Japanese Nikkei 225 fell 0.35%, while the broader Topix index dropped 0.5%. The South Korean Kospi lost 0.1%. Hong Kong’s Hang Seng index dropped 1.35%, Chinese Shanghai Composite – by 2.4%, the Australian S&P/ASX 200 was down 0.2%.

According to official statistics, the income of the companies of the industrial sector of China in October decreased by 4.6% after declining 0.1% in September. Coupled with a number of weak indicators for November, these data raise the concern of investors about the fact that the slowdown in China’s economy may be stronger than expected.

“Concerns over Chinese economy will continue to put pressure on the markets, especially in developing countries, – said the head of One Asset Management Wines of Domracheva. In addition, investors do not expect major deal before the Federal reserve meeting, which will take place in mid-December”.

Shares of Chinese FIS Citic Securities Co. and Guosen Securities Co. fell more than 5% on news that the stock market regulator, the PRC suspects them of violating bidding rules.

Trading of shares of Haitong Securities was temporarily suspended.

The market value of Japanese airline ANA Holdings and Japan Airlines fell more than 1.7%. Analysts at Mitsubishi UFJ Morgan Stanley noted the increasing competition from Chinese carriers.

Meanwhile, the price of securities Sumitomo Metal Mining gained 3.2% after the price of copper jumped 4.2%.