Japanese stocks drop as several financial and technology firms pull back from strong recent advances, while China shares gains higher after data showing an improvement in services-sector activity in the country.
Marketwatch reports “Among the notable decliners in Tokyo, Advantest Corp. dropped 1.9%, insurer T&D Holdings Inc. gave up 3.5%, and banking major Mitsubishi UFJ Financial Group Inc. declined 1.4%.”
The losses outweighed the positive effect from a string of upbeat results for Japanese companies. The Nikkei business daily reported that consolidated pretax profits for the 668 listed companies that have already announced earnings rose an average 42% in the April-to-June quarter compared to the year-earlier period report said.
Chinna shares closed up 1.04 percent. The benchmark Shanghai Composite Index rose 21.06 points to 2,050.48 on turnover of 73.3 billion yuan ($12.0 billion). Chinese shares climbed to nearly three-week closing highs on Monday, helped by dairy producers on hopes of increased demand after China banned New Zealand milk power imports following a contamination scare at the country’s Fonterra.
According to market reports China’s showing signs of stabilizing after slowing for two straight quarters, with official manufacturing and services indexes rising and gains in gauges of business expectations.