Asian Stocks Dip Despite Wall Street Gains | Stock Market Today

Bangkok, Oct 17 (AP) Shares mostly advanced in Asia on Thursday after US stocks rose following better-than-expected profit reports from Morgan Stanley, United Airlines and other big companies.

Chinese markets fell back after officials in Beijing announced the government was expanding financing for housing projects to try to turn around a slump in the property market triggered by a crackdown on excessive borrowing by developers.

In Hong Kong, the Hang Seng index dropped 1 per cent to 20,082.63, while the Shanghai Composite index shed 1.1 per cent to 3,169.38.

China is due to announce its economic growth data for the April-September quarter on Friday. Economists are forecasting annual growth at about 4.5 per cent, short of the government's target of about 5 per cent.

China's leaders have promised more measures to help boost the economy, but so far have not provided details of stimulus on a scale that would satisfy investors hoping to see reforms that might address longer term problems such as massive local debt and weak consumer demand.

Plans announced so far amount to a “bailout” aimed at nurturing a gradual recovery instead of a “V” shaped short-term rebound in prices, economists at ANZ Research said in a report.

“Without announcing a major shift in housing policy stance, the policy measure will not induce massive investment demand in real estate,” the report said. But it added that “The package of credit injection is an effective measure to reduce the financial risks and liquidity crunch faced by the developers and the related supply chains, fending off a subprime crisis in China.”

In Tokyo, the Nikkei 225 index lost 0.7 per cent to 38,911.19 after the government reported Japan's exports fell 1.7 per cent from a year earlier in September, widening the country's trade deficit.

Elsewhere in Asia, South Korea's Kospi slipped less than 0.1 per cent to 2,609.30 and in Australia the S&P/ASX 200 added 0.9 per cent to 8,355.90.

Taiwan's Taiex gained 0.2 per cent and India's Sensex was down 0.5 per cent. In Thailand, the SET gained 0.6 per cent a day after the central bank cut its key interest rate by a quarter of a percentage point, to 2.25 per cent.

On Wednesday, the S&P 500 picked up 0.5 per cent to 5,842.47 to recover much of the slide from its all-time high the day before. The Dow Jones Industrial Average rose 0.8 per cent, to set a record at 43,077.70. The Nasdaq composite added 0.3 per cent to 18,367.08.

Morgan Stanley rallied 6.4 per cent after reporting stronger profit for the latest quarter than analysts expected. CEO Ted Pick said the investment bank enjoyed a “constructive environment” in its businesses around the world. And with stock prices near records, it's managing even more money for clients.

United Airlines flew 12.4 per cent higher after reporting a milder drop in summer profit than expected and announcing plans to send up to USD 1.5 billion to its shareholders by buying back its stock. J.B. Hunt Transport Services motored up by 3.1 per cent after the freight company delivered better-than-expected results.

Energy stocks were holding steadier, including a 0.3 per cent tick higher for Exxon Mobil, a day after sliding to some of the market's worst losses.

They've been generally following the price of oil, which has fallen back as worries recede that Israel will attack Iranian oil facilities as part of its retaliation for Iran's missile attack early this month. Iran is a major producer of crude, and a strike could upend its exports to China and elsewhere. Concerns about the strength of demand because of China's flagging economic growth have also hit oil prices.

Early Wednesday, US benchmark crude oil slipped 14 cents at USD 70.25 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, gave up 15 cents to USD 74.07 per barrel.

The dollar rose to 149.78 Japanese yen from 149.64 yen. The euro fell to USD 1.0859 from USD 1.0862.