Asian stocks began high on Monday, despite China reporting a slowdown in manufacturing activity and countries in the region continuing to be hit by Delta variants.
The Nikkei 225 in Tokyo rose 1.7% to 27,742.28, and the Kospi in Seoul rose 0.1% to 3,205.43. Hong Kong’s Hang Seng Index rose 0.9% to 26,189.44 after being in the red all morning.
The Shanghai Composite Index rose 0.7% to 3,422.64 and Australia’s S & P / ASX 200 rose 1.5% to 7,501.20. Malaysian benchmarks have risen, but Singapore and Indonesia benchmarks have fallen.
China’s rise follows data released by the National Bureau of Statistics on Saturday, showing that the country’s official purchasing manager index fell from 50.9 in June to 50.4 in July. Numbers above 50 indicate expansion on a 100-point scale.
On Monday, a monthly manufacturing survey published by the business magazine Caixin put July readings at 50.3. It decreased from 51.3 in June.
Official figures were the lowest since February 2020, when a blockade was implemented to prevent the spread of the coronavirus. Analysts expected less easing in manufacturing activity.
China is also addressing the outbreak of delta variants of the coronavirus that are already widespread in many other Asian countries.
“Neither the slowdown in manufacturing growth nor the factors behind non-manufacturing growth have been eliminated,” ING’s Iris Pang said in a report.
“In fact, more policy directions were announced on July 30 and they are directly from a meeting chaired by President Xi. These policies can sacrifice short-term growth momentum. It aims to solve problems in order to achieve sexual long-term economic stability, “she said.
Investors are also watching Beijing’s crackdown on Chinese tech companies, even as authorities move to ease concerns.
Gaming and social media giant Tencent Holding Ltd. fell 2.8% in Hong Kong on Monday. However, Internet search giant Baidu Inc. increased 2.4% and e-commerce giant Alibaba Group increased 1.1%.
“Despite the long-term outlook for Chinese equities, recent regulatory rigor will keep foreign investors on the edge until sentiment begins to improve,” Nomura’s research analyst said. I think. ”
On Friday’s Wall Street, the index stumbled while closing another powerful month. The S & P 500 recorded a sixth straight month of rise, down 0.5% to 4,395.26.
The Dow Jones Industrial Average fell 0.4% to 34,935.47. The Nasdaq Composite fell 0.7% to 14,672.68.
In other trades, US benchmark crude fell 98 cents to $ 72.97 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude fell $ 1.11 to $ 74.30.
The US dollar rose from 109.62 yen on Friday to 109.69 yen. The euro rose from $ 1.1875 to $ 1.1878.
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Inventories in Asia are increasing despite a slowdown in Chinese manufacturing
Source link Inventories in Asia are increasing despite a slowdown in Chinese manufacturing