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Most Asian shares buoyed on Thursday following Wall Street’s decline for the second time while Chinese stocks fell after data showed weak manufacturing results.

Tokyo’s Nikkei 225 (N225) closed the day 1.07 percent high to ¥19,860 while TOPIX rose 1.13 percent to ¥1,586.14 and Seoul’s KOSPI (KS11) shed 0.1 percent to ₩2,344.61.

Australia’s S&P/ASX 200(AXJO) gained 0.2 percent to AU$5,738.13 whereas India’s Sensex closed at 0.03 percent low to ₹31,137.59.

Wall Street

US stocks fell on Wednesday as financial shares slipped after JPMorgan Chase & Co and the Bank of America stated their concerns over weakening revenues in the second quarter.

JPMorgan (JPM) was down 2.09 percent to $82.15 at its close while Bank of America (BAC) dropped 1.86 percent to $22.41.

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Energy companies fell with oil prices and investors chose consumer-centered businesses, drug manufacturers and high-dividend services and household products groups.

S&P 500 (SPX) closed with a 0.05 percent loss to $2,411.80 while S&P 500 Futures for the June contract is currently up by 0.09 percent to $2,413.25 on Thursday.

Dow Jones Industrial Average (DJI) lost 0.10 percent to $21,008.65 at market close on Wednesday.

Chinese Stocks

China’s shares lost as much as 0.4 percent after Beijing-based media group Caixin/Markit manufacturing purchasing managers’ index (PMI) fell to an 11-month low of 49.6 in May compared to last month’s 50.3 and lower than the median estimate of 50.1.

This is the lowest reading and so far the slowest production increase rate since June 2016.

Output also declined to 50.2 compared to 51 in April.

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Reading above 50.0 is a sign of expansion in manufacturing while a reading below 50.0 indicates a contraction in activity. 

Following the data release, the Shanghai Composite Index (SSEC) lost 0.5 percent to CN¥ 3,101.70 and Shenzhen Composite Index (SZSC) was 1.9 percent down to CN¥1,773.606.

Hong Kong’s Hang Seng (HSI) advanced 0.5 percent to HK$25,809.

Taiwan Stocks

Shares of Taiwan were also higher after the close on Thursday driven by gains in the hotels, semiconductor and other electronic segments.

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At its close, Taiwan Hotel (THOI) lifted 1.99 percent to TW$124.77, Semiconductor (TSII) added 1.54 percent to TW$146.11 and other electronic (TEOI) increased by 1.19 percent to TW$106.76.

Taiwan Weighted (TWII) edged up 0.4 percent to TW$10,087.42 as well.

Philippines Stocks

Philippines shares rose on Thursday and is on track for its first gain in three sessions following the lower house of Congress’ approval of a much-awaited tax reform bill on Wednesday, leading the country’s shares to surpass other South-east Asian markets.

The country’s benchmark buoyed a significant 0.75 percent, its biggest gain since May 16 with real estate firm Ayala Land Inc (ALI) climbing as much as 2.92 percent to ₱40.550 and telecom group PLDT Inc raising a 5.09 percent to ₱1,816.

The bill will be published once the Senate has given its approval.

The bill is also important to President Rodrigo Duterte’s economic program which is centered on infrastructure expenses and fiscal efficiency which could increase growth about 8 percent ahead of his six-year term end in 2022.

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According to Rachel Cruz, foreign and local funds alike have been waiting for the bill to pass in the Congress as it would give the pull that the market needs to go above the 8,000 level.

She added that the property division will also grow as the Department of Finance (DOF) is planning to renew Real Estate Investment Trusts (REITs) once the bill’s passage.

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