Asian shares edged lower amid mixed China PMIs; Rating uncertainty continues with Investing.com
Investing.com– Most Asian stocks edged lower on Monday as investors digested a mixed take on China’s corporate activity, while uncertainty over US interest rates remained in play.
Regional markets took weak cues from a negative close on Wall Street on Friday, as profit-taking at the end of the quarter significantly reduced expectations of Federal Reserve tapering.
The future of the US stock index was slightly positive in Asian trading, although investors remained surprised before the address of , the , and the data of additional indicators on interest rates.
Chinese stocks fall on mixed PMIs
China and indexes fell 0.5% and 0.2%, respectively, after index readings of government and private purchasing managers gave mixed views on the economy.
released on Sunday showed China’s manufacturing sector contracted for the second month in a row in June. But to the contrary, readings on Monday showed the sector growing at its fastest pace in three years.
Although the two studies differ in their scope of companies covered, they still paint two different pictures of Asia’s largest economy, leaving investors uncertain about their economic prospects.
Chinese markets were already suffering heavy losses in June, falling from their 2024 highs as slow stimulus measures from Beijing saw the country sour.
The focus in July is on the third Plenum of the Chinese Communist Party, a meeting of top officials where the government may offer more economic support.
Broader Asian markets retreated amid some uncertainty over China. Australia was down 0.4%, while South Korea was flat.
Hong Kong markets are closed for the holiday.
Futures for India’s index pointed to a slightly negative open, with the index set to take some gains after hitting a series of record highs through June.
Japanese stocks rise sharply, revised GDP down
Japan and the indexes rose about 0.3% and 0.4%, respectively.
The pair pared most of their early gains after the government unexpectedly revised first-quarter data to show a deeper contraction than initially expected.
The reading highlighted growing cracks in Japan’s economy, which could present headaches for the company’s earnings in the coming months.
But the weak economy also means the Bank of Japan is likely to keep interest rates low for longer, which bodes well for local stock markets.
