February 23, 2024

Asia Stocks Slip while China’s Shares Rise

On Thursday, Chinese markets climbed as official government data showed that factory activity had gone up in June. However, most of the other indexes in the Asia-Pacific region recorded declines.

Index movements

There was a more than 2% rise in the Shenzhen Component earlier in the session, but it trimmed some of those gains to close with a rise of 1.57% at 12,896.2. Meanwhile, there was a 1.10% increase in the Shanghai Composite, which reached 3,398.62.

A 0.57% drop was seen in Hong Kong’s Hang Seng index in the last hour of trading and a 1.46% drop was recorded in the Hang Seng Tech index. SenseTime, the artificial intelligence company’s shares tumbled almost 50.5% last Thursday after a lock-up time of 6 months following the end of some of its shares. The stock was trading about 47.79% lower in afternoon trading.

There was a 1.54% drop in the Japanese Nikkei 225 index, as it closed at 26,393.04. Meanwhile, the Topix index had shed 1.2% to reach 1,870.82. The Australian S&P/ASX 200 index fell by 1.97% to reach 6,568.1. There was also a 1.91% decline in the Kospi index of South Korea that bringing it to 2,332.64, while a 2.22% drop in the Kosdaq was seen as it closed at 745.44. There was also a 1.14% drop in the MSCI index of Asia-Pacific shares outside of Japan.

Economic news

The economic data showed that the Purchasing Managers’ Index for China’s manufacturing sector was 50.2 for the month of June, which was a tad slower than the expected 50.5. The purpose of the 50-point mark is to distinguish between contraction and growth every month and since March, the index has remained below 50.

There was some mild growth recorded in South Korea’s factory output in May, as per government data. There was a 0.1% rise in industrial production in May, as opposed to April. There was also 1.1% growth seen in the output of the service sector. Industrial production in Japan was lower in May by 7.2%.

This figure was significantly less than the market consensus and the Chinese lockdowns could have had an impact on it. As for the corporate sector, Toyota Motor was unable to meet its monthly production target for the third straight month. This saw a 1.32% drop in the shares of the company on Thursday.

US markets

Stocks were fluctuating overnight in the US market on Wednesday after the major indexes were unable to retain the bounce seen in the previous session. The markets are preparing for the worst close in the first half of a year that has not been seen since 1970. The market has been plagued by inflation concerns, fear of recession, and hike in interest rates.

There was a 0.27% rise in the Dow Jones Industrial Average as it closed at 31,029.31, but the other two benchmark indexes closed the day lower than before. The tech-heavy Nasdaq Composite index and the S&P 500 index closed lower for the day by 0.03% and 0.07% respectively.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous post Asia-Pacific Shares Fall with Consumer Confidence
Next post Investors Will Not see eToro Going Public Soon as it has Withdrawn from SPAC Deal