Asian shares down on weak China manufacturing data

<p>China’s manufacturing tumbled to a 15-month low in July.</p>

Asian markets ended the week on a weak note after new data showed that the Chinese manufacturing sector is struggling.

The preliminary China Caixin purchasing managers index (PMI), a manufacturing index based on a survey of factory purchasing managers, surprised markets by dropping to a 15-month low in July.

Sentiment was also hampered after several American companies issued cautious outlooks while posting earnings for Q2, citing the strength of the dollar and a slowing economy in China.

Investors were also concerned by losses on commodity markets due to an over supply glut, along with a strong dollar and the likelihood of an imminent interest rate hike by the US Federal Reserve.

"With the US dollar likely to keep rising as the Fed prepares to raise rates, there's still some sort of weakness to come in the commodity space," said Angus Gluskie, managing director at White Funds Management Pty in Sydney, quoted by Bloomberg.

"The earnings outlook in the U.S. is also somewhat subdued as a result of the strong US dollar. We're not likely to see a massive rally in the next few months."

Japan's Nikkei 225 lost 0.7 per cent to 20,532.20 and Hong Kong's Hang Seng was down one per cent to 25,152.62. South Korea's Kospi dropped 0.9 per cent to 2,046.44, Australia's S&P/ASX 200 edged down 0.4 per cent to 5,566.20. China's Shanghai Composite Index tumbled 1.3 per cent to 4070.83.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.