Asia ends mixed as China PMI slows, Japan sentiment improves| MENAFN.COM

Tuesday, 28 June 2022 08:42 GMT

Asia ends mixed as China PMI slows, Japan sentiment improves


(MENAFN– ecpulse)

Asian stocks ended Monday’s trading mixed after China’s PMI manufacturing activity slowed further confirming that the world’s second-largest economy has turned from a driver to a dragger of global growth; a possible withdrawal of US stimulus may also hurt sentiment.

- MSCI Asia Pacific Excluding Japan Index fell 0.3% to 430.7 as of 14:25 in Hong Kong

China’s PMI expanded at the slowest pace in four months in June at 50.1, as the recent liquidity crisis in the banking system reduced the flow of credit to companies. Yet, relief was felt as officials insure authorities will do whatever it takes to keep financial markets stable.

- China’s CSI 300 Index closed 0.58% higher at 2213.32

- Markets in Hong Kong are closed for holiday

China’s slowdown hit the Australian equities the worst as China is Australia`s largest trading partner. Also weighing on sentiment is the political instability after the newly reinstated Prime Minister Kevin Rudd considers delaying the elections from early Sep. to Oct.

- The S&P/ASX 200 closed 1.92% lower at 4710.29

- New Zealand’s NZX 50 closed 0.50% lower at 4418.05

In Japan, Nikkei hit a one-month high after the Tankan survey showed sentiment among big firms turned positive for the first time in two years as optimism over Prime Minister Shinzo Abe`s aggressive stimulus policies offset concerns about the recent market volatility.

- Nikkei 225 closed 1.28% higher at 13852.50

- Topix closed 1.49% higher at 1150.70

Investors in South Korea tacked the caution seen across the Asian equities amid concerns over China`s latest factory activity data and a paring down of US stimulus especially if Friday’s non-farm payrolls confirm growth in the world’s largest economy is improving.

- Kospi closed 0.41% lower at 1855.73


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