HONG KONG (AP) - Asian stock markets turned in a mixed performance Thursday as investors reacted to news that China’s economy, battered by slumping global trade, suffered its slowest quarterly growth in at least a decade. European markets were higher in early trade.
Most of the Asia’s major markets opened sharply higher but were hit by selling after Beijing said the world’s third-largest economy grew 6.1 percent from a year earlier in the first quarter _ down from 6.8 percent the previous quarter.
Despite the slowdown, other economic figures in China were more upbeat, analysts said. A surge in industrial production, as the government poured money into state-owned companies, was among the signs for many investors that China’s economy may have already hit bottom.
While many economists cheered the data, the markets seemed to lack conviction. News from the U.S. also offered a somewhat mixed picture overnight, with a key Federal Reserve survey showing some improvements in business conditions but other data highlighting more gloom in industrial production and consumer prices.
The market’s uncertain performance shows many investors still aren’t persuaded the worst is over. Many have begun bracing for a pullback following an historic run-up in stock markets over the last five weeks.
“The strength in the market that we saw last week even ahead of a long holiday … told me a lot of people were underweight the market and there was still a lot of money on the sidelines waiting to jump in,” said John Mar, co-head of sales trading at Daiwa Securities SMBC Co. in Hong Kong.
“But it’s getting harder and harder to find stocks that are very cheap relative to the economic backdrop we are dealing with, which is implying we may be close to the top.”
European markets demonstrated a little more gusto, with Britain’s FTSE 100 adding 1 percent, Germanys’ DAX up 0.2 percent and France’s CAC-40 up 0.5 percent in early trading. U.S. futures suggested Wall Street would open lower Thursday. Dow futures fell 29 points, or 0.4 percent, to 7,951 and S&P 500 futures slipped 4.1, or 0.5 percent, to 844.40.
Earlier in Asia, most markets gyrated throughout the day after initially trading higher on Wall Street’s upbeat assessment of the Federal Reserve report showing glimmers of hope in the U.S. economy.
In Japan, the Nikkei 225 stock average was up almost 3 percent before turning down and rising again to close up 12.30 points, or 0.1 percent, at 8,755.26. In Hong Kong, the Hang Seng finished down 86.63 points, or 0.6 percent, at 15,582.99.
In mainland China, the Shanghai index edged down 1.92, or 0.1 percent, to 2, 534.13. Elsewhere, South Korea’s Kospi added 0.3 percent and Australia’s main index rose 0.7 percent. Benchmarks in India and Singapore fell.
In stocks, Japan’s NEC Electronics Corp. soared 12 percent on news its was in talks with Renesas Technology Corp. to merge their operations and form Japan’s biggest semiconductor maker by sales.
Overnight in the U.S, stocks were lower for most of the day before jumping in the last hour of trading as they seized on the rosiest elements of the Fed’s report.
The Dow added 109.44, or 1.4 percent, to 8,029.62. The Standard & Poor’s 500 index rose 10.56, or 1.3 percent, to 852.06.
Oil prices crept to near $50 a barrel as investors brushed off poor economic news from the U.S. and eyed a possible second-half recovery in crude demand.
Benchmark crude for May delivery rose 49 cents to $49.74. The contract on Wednesday dropped 16 cents to settle at $49.25.
In currencies, the yen slipped to 98.68 from 99.35. The euro weakened to $1.3155 from 1.3812.
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