Asian Shares Fall After Disappointing Factory-Activity Data From China

By Chao Deng 

Stocks in Taiwan fell Monday after the island's Beijing-friendly ruling party suffered a massive defeat in local elections Saturday, while elsewhere in the region, markets were mixed after disappointing factory-activity data from China.

Taiwan's Taiex was down 1.3% to 9065.86 with local-election results expected to complicate the island's fraught relations with China, its main export market. Trade deals have given Taiwanese fruit growers, fish farmers and other businesses preferential access to the mainland market.

Futures for the Hang Seng Index were down 0.5%, after China reported manufacturing activity at a level of 50.3, below expectations for 50.6 and down from 50.8 in October. A reading above 50 indicates expansion of activity, while a reading below that level signals contraction.

Elsewhere in the region, slumping oil prices continued to reverberate through the energy sector.

Australia's S&P ASX 200 was down 0.9% at 5265.20, extending sharp losses from Friday when crude prices plummeted.

A gauge of energy stocks was down 4.4%, more than offsetting gains in oil price sensitive airlines and select financial shares. Woodside Petroleum Ltd. was down 4.3%, Santos Ltd. lost 5.4% and Oil Search Ltd. had fallen 7.4%.

Crude oil futures were last down 2.8% to $64.30 a barrel, as traders factored a decision Thursday by the world's biggest oil producing nations to stick with their current target levels of production, a move that suggests a continued glut and oil prices remaining around multiyear lows.

Stocks in Japan were a bright spot, however. The Nikkei Stock Average was up 1.0% at 17631.28 after reports of brisk sales from U.S. retailers for Black Friday, the traditional start to the holiday-shopping season and one of the biggest online shopping days of the year.

Korea's Kospi was down 0.7% to 1966.36.

Write to Chao Deng at [e-mail]

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