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. <\/p>\n
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. <\/p>\n
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.<\/p>\n
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. <\/p>\n
Japanese shares fell sharply, with a firmer yen and concerns about China’s uneven economic recovery keeping investors nervous. <\/p>\n
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.<\/p>\n
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.<\/p>\n
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. <\/p>\n
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. <\/p>\n
Tech heavyweights Samsung Electronics and SK Hynix both fell over 1 percent while battery maker LG Energy Solution rallied 3.3 percent. <\/p>\n
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.<\/p>\n
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. <\/p>\n
Across the Tasman, New Zealand’s benchmark S&P NZX-50 index ended down 0.55 percent at 11,813.01.<\/p>\n
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.<\/p>\n
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. <\/p>\n