Asian Shares Fall On China Growth Concerns
Asian stocks slumped on Wednesday as China manufacturing data disappointed and caution crept in ahead of a vote in Congress to raise the U.S. debt ceiling.
China’s Shanghai Composite index dropped 0.61 percent to 3,204.56 after data showed manufacturing activity in the country shrank faster than expected in May on weakening demand, raising uncertainty over post-Covid recovery.
Meanwhile, service sector activity expanded at the slowest pace in four months. The official manufacturing PMI dropped to a five-month low of 48.8 from 49.2 in April while the non-manufacturing PMI fell to 54.5 from 56.4.
Hong Kong’s Hang Seng index plunged 1.94 percent to 18,234.27 amid fears of worsening ties between Washington and Beijing after China declined a U.S. request for a meeting between defense ministers.
Japanese shares fell sharply, with a firmer yen and concerns about China’s uneven economic recovery keeping investors nervous.
The Nikkei average settled 1.41 percent lower at 30,887.88, snapping a four-day winning streak after the benchmark index scaled a 33-year high earlier this week. The broader Topix index fell 1.32 percent to 2,130.63.
Advantest, Fast Retailing and Tokyo Electron lost 1-2 percent. Toyota subsidiary Hino Motors jumped 12.3 percent following news of a merger plan with Daimler Truck-owned Mitsubishi Fuso Truck and Bus.
Japanese retail sales rose 5 percent in April from a year earlier while industrial output was down in the month for the first time in three months, separate reports showed earlier in the day.
Seoul stocks ended slightly lower, with the Kospi average closing down 0.32 percent at 2,577.12 after the release of disappointing factory output and retail sales data.
Tech heavyweights Samsung Electronics and SK Hynix both fell over 1 percent while battery maker LG Energy Solution rallied 3.3 percent.
Australian stocks tumbled to reach over two-month lows after data showed a bigger-than-expected rise in inflation through April. China growth concerns also weighed.
The benchmark S&P ASX 200 fell 1.64 percent to 7,091.30 while the broader All Ordinaries index ended 1.54 percent lower at 7,273.50, dragged down by mining and energy stocks.
Across the Tasman, New Zealand’s benchmark S&P NZX-50 index ended down 0.55 percent at 11,813.01.
U.S. stocks ended mixed overnight as a measure of U.S. consumer confidence slipped in May and reports emerged that some Republicans were seeking bigger spending cuts.
The Dow slipped 0.2 percent while the S&P 500 ended marginally higher and the tech-heavy Nasdaq Composite edged up 0.3 percent.
Source: Read Full Article