Hong Kong stocks lead losses in Asia; China factory activity shrinks

Soegeefx AppsAsia MarketHong Kong stocks lead losses in Asia; China factory activity shrinks

Shares in the Asia-Pacific fell in Wednesday trade following a negative lead from Wall Street, and as investors digest China’s factory activity data.

Hong Kong’s Hang Seng index fell 1.38%, and the Hang Seng Tech index slipped 1.74%. Heavyweight Alibaba lost 3.3%.

The Shanghai Composite in mainland China dipped 0.36%, and the Shenzhen Component

shed 0.78%.

China’s official manufacturing Purchasing Managers’ Index for August beat expectations slightly, coming in at 49.4, official data showed. The non-manufacturing PMI was at 52.6.

The Nikkei 225 in Japan shed 0.52%, and the Topix index slipped 0.56%.

Australia’s S&P/ASX 200 declined 0.34%. In South Korea, the Kospi

traded 0.46% while the Kosdaq was up 0.2%.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.75%.

.N225 Nikkei 225 Index *NIKKEI 28046.1 -149.48 -0.53
.HSI Hang Seng Index *HSI 19686.05 -262.98 -1.32
.AXJO S&P/ASX 200 *ASX 200 6969.6 -28.7 -0.41
.SSEC Shanghai *SHANGHAI 3223.61 -3.61 -0.11
.KS11 KOSPI Index *KOSPI 2437.72 -13.21 -0.54
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 7934.83 -84.86 -1.06

Overnight on Wall Street, major stock indexes fell for a third straight session.

The S&P 500 dipped 1.1% to 3,986.16, falling below the 4,000 level for the first time since July. The Nasdaq Composite dropped 1.1%, to close at 11,883.14, and the Dow Jones Industrial Average shed 308.12 points, or nearly 1%, to 31,790.87.

“Equity markets continued to be impacted by expectations central banks will keep their foot on the accelerator in terms of rate hikes,” Brian Martin and Daniel Hynes of ANZ Research wrote in a note Wednesday.

On Tuesday stateside, New York Federal Reserve President John Williams said he sees rates rising further and staying at those levels until inflation is subdued.

— CNBC’s Tanaya Macheel, Jesse Pound and Jeff Cox contributed to this report.

CNBC Pro: What poses the biggest risk to stocks? Wall Street is watching these indicators closely

Stocks have taken yet another turn lower after U.S. Federal Reserve Chairman Jerome Powell made clear last week that rate hikes are set to continue — even if they cause more pain ahead.

What could drive the next leg down for stocks? Morgan Stanley and Wolfe Research have identified a number of indicators they expect to determine market moves looking ahead.

— Weizhen Tan

South Korea scraps Covid tests for inbound travelers, travel stocks rise

Travel stocks in South Korea continued to rise for a second day after the South Korean government confirmed reports it would scrap Covid tests for inbound travelers.

Asiana Airlines was up 2.03% and Korean Air also traded 0.96% higher. Travel companies Lotte Tour Development was up 3.6%, Hana Tour traded 0.67% higher and Hotel Shilla was also up 1.08%.

Seoul announced it will lift its current pre-travel test requirements, where visitors must show a negative result before departure to enter the country. The update will take effect Saturday.

–Jihye Lee

Factory output in Japan rises, beats expectations

Industrial production in Japan unexpectedly rose 1% in July from the month earlier, according to official data.

The latest data beat estimates of a 0.5% contraction predicted by analysts in a Reuters poll, after June’s factory output jumped 9.2% as China eased Covid curbs.

Retail sales for July also rose 2.4% compared to the same period a year earlier.

The Japanese yen strengthened slightly and was last at 138.63 against the dollar.

— Abigail Ng

CNBC Pro: Morgan Stanley names 3 EV stocks to cash in on Beijing’s auto sector boost

China’s government is striving to boost auto sales, and this is likely to benefit electric vehicles more than their petrol-based counterparts, according to Morgan Stanley.

“While China braces for its slowest quarterly economic growth in two years, the car industry is benefiting from multifaceted stimulus offered by central and local governments,” the bank’s analysts said in a note this month.

They named three buy-rated stocks they expect to get a boost from the measures.

— Zavier Ong

Source : CNBC

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