Asia stocks choppy as investors cautious after disappointing China data By Reuters
Economy 19 minutes ago (Nov 29, 2022 09:55PM ET)
(C) Reuters. FILE PHOTO: People walk past a screen displaying the Hang Seng stock index at Central district, in Hong Kong, China October 25, 2022. REUTERS/Lam Yik/File Photo
By Kane Wu
HONG KONG (Reuters) – Asian shares wobbled on Wednesday as investors remain cautious about China’s path to reopening its economy after it released disappointing manufacturing data, with China and Hong Kong stocks wiping out strong gains from the previous day.
MSCI’s gauge of Asia Pacific stocks outside Japan was up 0.02% at 0201 GMT, paring earlier losses. At current levels, the index is set to post its biggest monthly gain since April 1999.
Hong Kong’s Hang Seng Index and China’s benchmark CSI300 Index, though, opened down 0.4% and 0.3% respectively, with China’s factory activity contracting at a faster-than-expected pace in November.
China’s factory activity deepened this month, an official survey showed on Wednesday, weighed down by softening global demand and COVID-19 restrictions.
The losses in Hong Kong and China reversed positive sentiment from Tuesday, when Chinese officials said the country would speed up COVID-19 vaccinations for elderly people.
The vaccination push was seen as crucial to unwinding nearly three years of strict curbs in the world’s second-largest economy that have eroded economic growth, disrupted the lives of millions and sparked unprecedented protests this past weekend.
“Headlines from China regarding COVID restrictions and protests are causing jitters among investors. Although some COVID easing measures are being considered, it may not be enough to prevent further economic disruption,” said Anderson Alves, global macro analyst at ActivTrades.
“Expectations are that as COVID cases continue to rise, restrictions will be re-tightened before year-end, bringing with it more uncertainty over the impact on the economy,” he said in a research note on Wednesday.
Sentiments globally are of a cautious tone. The S&P 500 closed lower on Tuesday as investors awaited guidance on the U.S. Federal Reserve’s path of interest rate hikes.
Fed Chair Jerome Powell is scheduled to speak about the economy and labour market at a Brookings Institution event on Wednesday. A series of U.S. data concerning manufacturing, inflation and jobs will also be released this week.
“This week will offer an interesting test for markets as we have a look at the next important data macro data points out of the U.S., especially the PCE inflation data and the Friday November jobs report,” said Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong.
The U.S. ISM manufacturing survey for the month on Thursday is also expected to slip into contraction, Wong said.
Spot gold rose 0.13%.
In currency markets the dollar index declined 0.2%.
Asia stocks choppy as investors cautious after disappointing China data
By Kevin Buckland TOKYO (Reuters) – The U.S. dollar stuck close to a one-week high on Wednesday, holding on to gains from a three-day rally, as investors braced for comments from…
By Wayne Cole SYDNEY (Reuters) – Australian inflation slowed in October as prices for fruit and vegetables fell sharply and holidays costs took a surprise dip, an unexpected turn…
By Kantaro Komiya and Kaori Kaneko TOKYO (Reuters) – Japan’s factory output fell for a second consecutive month in October, as stalling global demand and lingering supply…
(C) 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.