Asia-Pacific markets trade mixed ahead of private survey on Chinese services activity

Soegeefx AppsAsia MarketAsia-Pacific markets trade mixed ahead of private survey on Chinese services activity

Shares in the Asia-Pacific traded mixed on Monday as investors await the results of a private survey on Chinese services sector activity.

Japan’s Nikkei 225 fell 0.2%, and the Topix index lost 0.3%.

The S&P/ASX 200 in Australia gained 0.25%. In South Korea, the Kospi rose 0.35% and the Kosdaq fell 0.3%

MSCI’s broadest index of Asia-Pacific shares outside Japan was marginally lower.

China’s Caixin Services Purchasing Managers’ Index is due out on Monday. July’s print came in at 55.5, representing a growth in activity. The official non-manufacturing PMI for August is 52.6.

.N225 Nikkei 225 Index *NIKKEI 27612.12 -38.72 -0.14
.HSI Hang Seng Index *HSI 19452.09 0 0
.AXJO S&P/ASX 200 *ASX 200 6840 11.3 0.17
.SSEC Shanghai *SHANGHAI 3186.48 0 0
.KS11 KOSPI Index *KOSPI 2418.69 9.28 0.39
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 7772.15 -6.18 -0.08

On Friday in the U.S., nonfarm payrolls for August rose 315,000, slightly below the Dow Jones estimate. Unemployment inched higher.

“Asset markets initially recovered as an uptick in the U.S. unemployment rate due to a higher participation rate was seen as a potential sign of easing inflationary pressures in the US labor market,” ANZ Research said in a Monday note.

″[However,] the improved mood didn’t last long, as news emerged that Gazprom is not planning on restarting gas flows through Nord Stream 1,” the note said.

The Group of Seven nations announced on Friday that it reached an agreement to put a cap on Russian oil prices.

“The lack of reaction in the global oil price suggests a degree of skepticism about the impact,” ANZ Research wrote.

CNBC Pro: Mohamed El-Erian reveals where to invest right now

With stock and bond valuations falling concurrently, investors should be looking to get out of “distorted markets,” according to Mohamed El-Erian, chief economic adviser to Allianz.

“There was a time when all asset prices went up — stocks and bonds — and we forgot about correlations. Why care about correlations when you’re being paid for holding both risk assets and risk mitigating assets? It’s a lovely world,” he told CNBC’s Steve Sedgwick Friday.

″“But the first half taught us, and what we have again learned since the middle of August, [is] that they can both go down at the same time.”

Investors seeking alternatives have a couple of options, El-Erian says.

— Elliot Smith and Katrina Bishop

Source : CNBC

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