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Market Update

Aisan Markets Slightly Lower

Asian stocks declined Tuesday after a strong session the previous day even as a batch of reports from China provided a mixed view of the economy.

The Nikkei was off 0.2% after rallying sharply the previous session. The Shanghai Composite traded flat while the Hang Seng slipped 0.2%. The Sensex was down 0.5% while the All Ordinaries also traded flat.

Chinese industrial output for November rose 10% from a year earlier, down from 10.3% in the previous month. But retail sales were robust, gaining 13.7% on-year, and also up from October’s 13.3% growth. Fixed-asset investment which is seen as an indication of construction activity was up an annualized 19.9% for the January-November period, slowing from 20.1% in the January-October time period.

The Australian dollar slipped after the data from its key trading partner.

Industrial production figures are expected later in the day from France and the U.K.

St. Louis Fed President James Bullard said Monday monetary policy makers may consider slightly reducing the pace of stimulus measures while Richmond Fed President said separately the issue will be discussed at next week’s meeting.

Stocks on the Move

Mitsubishi Estate advanced 2.2% while Mitsui Fudosan gained 1.5%.

Exporters that gained yesterday were mostly lower as Kyocera traded flat and Mazda reversed 0.4%. Index heavyweight Sony was down almost 2%.

In Hong Kong, index heavyweight HSBC Holdings was down 0.4% after the company termed as “speculation” a report in The Financial Times that the lender is considering listing a part of its U.K. banking unit.

In Mumbai, the Sensex was lower after hitting a record high yesterday. NTPC plunged 11.3% after the Central Electricity Regulatory Commission released draft regulations for power generation companies late Monday. The new regulations are expected to have a negative impact on power tariffs for regulated power generating and transmission companies.

BHEL fell 5.2% while L&T was down 4.3%. ICICI Bank gave up 3.4%.

In Sydney, QBE Insurance plummeted a further 10% after falling over 11% yesterday following a profit warning.