Home Asian stocks take the red on China data
FXStreet News

Asian stocks take the red on China data

  • Upbeat spending details from the US and light economic calendar helped Wall Street.
  • China data raised doubts over global economic health and dragged Asian markets down.

Asian shares couldn’t follow Wall Street gains on Tuesday as disappointing PMI data from China renewed global growth fears.

After the US consumer spending managed to counter earlier speculations of a contraction, Wall Street painted the green; though, the rise remained suppressed ahead of this week’s key events like FOMC and NFP. The DJIA closed around 26,555 with +0.04% gain while S&P500 and Nasdaq registered more than 0.10% profits.

Early Tuesday, April month purchasing manager index (PMI) numbers for China drove global markets as not only official manufacturing and non-manufacturing PMI but Caixin manufacturing PMI also lagged behind previous readout and consensus. The data quickly dragged Chinese and Australian equities at first prior to spreading the losses across Asian markets.

China’s HANG SENG was down around 0.5% by the time of writing whereas Australia’s ASX200 also in the red to the same proportion. Though, New Zealand’s NZX50 benefited from ANZ business confidence and activity outlook data.

The global barometer for risk sentiment, 10-year Treasury yields from the US, were almost unchanged at 2.53% after registering three basis points’ gain on Monday.

MSCI’s index of Asia-Pacific shares ex-Japan lost 0.7% by the press time with Korean shares getting the hit after South Korea’s Samsung revealed profits that were lesser than market expectations.

It should also be noted that Japan continues to be on the Golden week holidays with the present emperor Akihito readying for abdication to his elder son, Crown Prince Naruhito.

Looking forward, the Q1 2019 gross domestic product (GDP) numbers for the Eurozone can entertain global traders ahead of the US pending home sales, Chicago PMI and CB consumer confidence.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.