Asian stocks started the weak on a subdued note, amid falling energy prices and the release of weak Chinese manufacturing data today (August 3rd).
The final July reading for Caixin China purchasing managers' index (PMI), a manufacturing index based on a survey of factory purchasing managers, came in at 47.8, lower than the preliminary reading of 48.2.
The reading also follows comments over the weekend by central bank official Sheng Songcheng about his darkening economic outlook for the second half of the year, the Securities Times reports.
“Investors are anticipating further policy support, given sluggish economic outlook in the second half this year,” Li Lei, an analyst at China Minzu Securities, told the Wall Street Journal. He said he expects stronger stabilisation measures from Beijing if the Shanghai market slides below 3500 this week.
The Shanghai Composite Index fell 1.1 per cent to 3622.99 and Hong Kong's Hang Seng was down 0.9 per cent to 24411.42. Tokyo's Nikkei 225 edged down 0.2 per cent to 20,539.48 and Seoul's Kospi lost one per cent to 2,009.73. Australia's S&P/ASX 200 closed 0.4 per cent down to 5,674.90.
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.