Most Asian stocks declined during Tuesday’s session after the HSBC
flash reading of China’s April purchasing managers index indicated the
world’s second-largest economy does not have the full head of steam that
some market participants had hoped.
In Asian trading Tuesday, Japan’s Nikkei 225 fell 0.28% as USD/JPY continued to encounter problems in its efforts to cross 100. Japanese stocks were the regional leaders, just has they have been for all of this year.
Hong Kong’s Hang Seng dropped 0.90% while the Shanghai Composite slid 1.39% after The flash HSBC Purchasing Managers' Index for April fell to 50.5 from 51.6 in March. The April reading is ahead of the February reading of 50.4. Readings above 50 indicate expansion.
The new export orders index fell to 48.6 in April from 50.5 in March, highlighting the fact that the global economic recovery remains tepid. China’s PMI report comes barely more than one week after the country said its first-quarter GDP grew by 7.7%, disappointing analysts that expected growth of 8%.
China’s PMI news comes just a day after the U.S. disappointed with its economic news. In U.S. economic news out Monday, the National Association of Realtors said existing home sales dropped 0.6% to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February. Economists expected an increase in March, but the number was still higher by 10.3% on a year-over-year basis.
Perhaps surprisingly Australian and New Zealand equities were among Asia’s best performers as Australia’s S&P/ASX 200 rose 0.90% while New Zealand’s NZSE advanced 0.72%. Both countries are major trading partners with China, but stocks in Australia and New Zealand may be advancing today because the dollar of both countries are trading lower against the U.S. dollar.
South Korea’s Kospi and Singapore’s Straits Times Index both fell by 0.65%. S&P 500 futures dropped 0.31%. The benchmark U.S. index rose modestly on Monday.
In Asian trading Tuesday, Japan’s Nikkei 225 fell 0.28% as USD/JPY continued to encounter problems in its efforts to cross 100. Japanese stocks were the regional leaders, just has they have been for all of this year.
Hong Kong’s Hang Seng dropped 0.90% while the Shanghai Composite slid 1.39% after The flash HSBC Purchasing Managers' Index for April fell to 50.5 from 51.6 in March. The April reading is ahead of the February reading of 50.4. Readings above 50 indicate expansion.
The new export orders index fell to 48.6 in April from 50.5 in March, highlighting the fact that the global economic recovery remains tepid. China’s PMI report comes barely more than one week after the country said its first-quarter GDP grew by 7.7%, disappointing analysts that expected growth of 8%.
China’s PMI news comes just a day after the U.S. disappointed with its economic news. In U.S. economic news out Monday, the National Association of Realtors said existing home sales dropped 0.6% to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February. Economists expected an increase in March, but the number was still higher by 10.3% on a year-over-year basis.
Perhaps surprisingly Australian and New Zealand equities were among Asia’s best performers as Australia’s S&P/ASX 200 rose 0.90% while New Zealand’s NZSE advanced 0.72%. Both countries are major trading partners with China, but stocks in Australia and New Zealand may be advancing today because the dollar of both countries are trading lower against the U.S. dollar.
South Korea’s Kospi and Singapore’s Straits Times Index both fell by 0.65%. S&P 500 futures dropped 0.31%. The benchmark U.S. index rose modestly on Monday.
