Asia-Pacific markets traded lower on Tuesday morning after major indexes on Wall Street finished their worst day since June amid mounting rate hike concerns.
Hong Kong’s Hang Seng index was down 0.27%. The Shanghai Composite was flat and Shenzhen Component fell 0.23%. Japan’s Topix traded 1.08% lower, the Nikkei 225 fell 1.25%, while South Korea’s Kospi was down 0.77%. S&P/ASX 200 declined 0.49.
Oil prices edged up after Saudi Arabia said OPEC could cut output, with West Texas Intermediate Futures trading 0.85% higher, while Brent Futures rose 0.83%.
|.N225||Nikkei 225 Index||*NIKKEI||28430.77||-363.73||-1.26|
|.HSI||Hang Seng Index||*HSI||19555.4||-101.58||-0.52|
|.AXJO||S&P/ASX 200||*ASX 200||7011.1||-35.8||-0.51|
|.FTFCNBCA||CNBC 100 ASIA IDX||*CNBC 100||7986.82||-72.54||-0.9|
Investors will be watching markets for reaction to a sharp tumble on Wall Street overnight, as the Dow Jones Industrial Average fell more than 600 points in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street. The S&P 500 also tumbled 2%.
“There was a big hit to risk appetite in what was a night devoid of any top tier data. Instead markets are apprehensive ahead of US Fed Chair Powell’s Jackson Hole speech,” Tapas Strickland of National Australia Bank said in a Tuesday note.
Australia’s Manufacturing Purchasing Managers (PMI) Index signaled the first contraction in the private sector’s output since January, while Singapore is set to release its core inflation data later in the afternoon.
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Japan’s manufacturing data shows slowest factory activity growth in 19 months
Japan’s manufacturing activity growth slowed to a 19-month low, as new orders continue to decline. The au Jibun Bank Flash Manufacturing Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 51.0 in August, down from July’s final of 52.1. The 50-point mark separates growth from contraction. Manufacturers reported a second successive contraction in output levels — the steepest in 11 months, the survey showed. New order growth fell at the sharpest pace since September 2020. The au Jibun Bank Flash Services PMI Index also slipped to a seasonally adjusted 49.2 in August from July’s final of 50.3, contracting for the first time since March. “Of concern was the amount of new business received by private sector firms, which reduced for the first time in six months and pointed to further weaknesses to come,” said Usamah Bhatti, an economist at S&P Global Market Intelligence.
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Source : CNBC