China March HSBC PMI Misses Estimates

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March 24 (Bloomberg) –- Sunrise Brokers Head of Japan and Asian Equities Ben Collett discusses China’s Manufacturing PMI and how China influences Japan with Zeb Eckert, John Dawson and Rishaad Salamat on Bloomberg Television’s “Asia Edge.” (Source: Bloomberg)

We are back.

This is "asia edge". ben, we had the slight disappointment out of manufacturing today.

Are you reading too much into it?

I think so.

Obviously, it is the best leading indicator of the -- it is the first bit of march, anyway.

There is an awful lot of pessimism priced into the market already.

This data is significant, but the first thing after it, more stimulus was needed.

It was neither here nor there.

We do have some flexibility in policy.

It is a somewhat laborious trade to hang onto, but you have to hang in there.

It is not so much the manufacturing side that is troubling the investors at the moment.

There is still the shadow banking issue.

Larger banks issuing stock to pay a dividend, that seems a little odd.

Unfortunately, what it does is makes other large, blue-chip, otherwise safe companies comparatively more expensive.

These kind of shenanigans -- great word.


It is not something that makes people enthusiastic about voting the banks.

-- holding the banks.

How does china affect japan, if at all?

If you look at japan, it is a very accessible market.

There are some things that i think will fold over or influence.

As far as money out of japan had into china -- and into china, japan is a self-contained unit.

As far as china goes, accessibility is becoming a greater issue.

The ability to move money out of japan and into china is something that is an ongoing trend.

Something that is increasing.

It is a difficult thing to trade.

Japan was out on friday and we saw a rallying.

Boj governor was speaking about they are halfway towards their inflation goal.

Does that encourage you?

Still have a long way to go.


Going from 1% -- 1% to 2% is kind of a big deal.

I do not know how you mentioned -- mention them.

Japan's natural inclination is towards deflation.

The headlines before we came on air today, extending foreign workers in japan or opening up these -- considering.

A lot of people say it is something they should have done a long time ago.

With japan, there are still a lot of things that they should have done a long time ago to avoid being in this.

China looks at them and says, we do not want to go down the same route.

Certainly so.

When we were talking about china, this was one of the things i wanted to mention.

China pulling back on the stimulus, yet pmi coming in not necessarily where people want them to be and chinese officials saying we will support construction projects here and there.

What gives?

Seems like they are following the same path.

By and large, yes.

A little more spend.

They are going through a process of clearing up the local governments.

A friend of mine back in the u.k., he is going with a delegation from the u.k. to see a bunch of local politicians.

It sounds like, if you want to build a factory, you can do whatever you want.

He wants to build a factory in china?


An industry like our production.

-- car production.

A nod, a wink, shake hands.

If you want to build a factory, it is ready much build it where -- pretty much build it wherever you want and we will help you.

Let's embrace change.

C-nook, no one likes it.

Will they also embrace change?

It turned into what, i do not know.

Down 25% the last 12 months.

It was a bag of underperformance.

We started taking a little bit in and advising our clients to take some in.

Now we are reducing it a little bit because the market feels shaky.

We have to take 4% when it presents it.

A lot of it has been sold.

A lot of our strategy is not rocket science.

We look for bull markets that have factored in a lot of bad news.

Again, it is all relative.

You look at the mobile realm on friday, only up 1%. 5% looks crap relative to 6%, so we are going to sell it.

You have got to be fast.

It is probably going to go higher, but we are losing some stock here.

Happy birthday, zeb.


This text has been automatically generated. It may not be 100% accurate.


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