Asian Equity Market Handover: China Bears Taking Cover After Better Caixin Manufacturing PMI

A summary of the stock market trends & highlights from today's Asian mid-session.

Stock market snapshot as of [03/6/2019 0600 GMT]


  • Negative follow through in the first trading day for a new month of June as the S&P E-Mini futures staged a gapped down by -0.72% in today’s Asian session to print a current intraday 2732 low from its Friday, 31 May cash index closing level of 2752.
  • Mix performance seen in Asian stock markets as today’s Asian mid-session where the Kospi 200 has rallied by 1.51% with modest gains seen in the China A50 at +0.25%. In contrast, the worst performers are the Japan’s Nikkei 225 and Australia’s ASX 200 where both has declined by -1.07% and -1.18% respectively.
  • The current bearish muted performance seen in the China related stock markets (China A50 & Hang Seng Index) can be attributed to a better than expected China’s Caixin Manufacturing PMI for May that stood at 50.2 versus a consensus of 50 and also fared better that the government complied NBS manufacturing PMI that contracted to 49.4 in May.
  • From a technical analysis perspective, the on-going decline seen in the major stock indices have been “overextended” and the risk of an imminent corrective rebound increases at this juncture (click here to assess our latest weekly technical outlook report).  
  • European stock indices CFD futures are tracking the current negative performance seen in the S&P 500 E-Mini futures where the FTSE 100 and German DAX are showing losses of -0.43% and -0.55% respectively.   
  • Upcoming key European data releases to take note will be Germany manufacturing PMI data for May due later at 0755 GMT follow by UK manufacturing PMI out at 0830 GMT.

Macroeconomic Calendar

   *Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.




Related Articles

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.