Investing.com - Asian stock markets pared losses during late Asian trade on Monday, with markets in China, Hong Kong and Australia turning higher after dismal Chinese manufacturing data fuelled expectations of further stimulus to boost growth in the world’s second largest economy.
Speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy further supported gains following a speech by Fed Chairman Ben Bernanke on Friday.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.35%, Australia’s ASX/200 Index added 0.3%, while Japan’s Nikkei 225 Index ended down 0.6%.
Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand.
The data came after the China Federation of Logistics and Purchasing said over the weekend that its Purchasing Managers Index contracted for the first time in nine months in August, falling to 49.2 from 50.1 in July.
However, the disappointing data fuelled hopes policymakers in Beijing will introduce fresh stimulus measures to boost economic activity in the world’s second largest economy.
China is a crucial market for the region's exporters.
Market sentiment was further supported after Federal Reserve Chairman Ben Bernanke indicated that the U.S. central bank could implement fresh stimulus measures to strengthen the U.S. economic recovery.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, on Friday, Bernanke said the persistently high rate of unemployment was a “grave concern” and reiterated that the central bank was ready to provide additional policy accommodation as needed to shore up growth.
In Hong Kong, the Hang Seng turned erased losses to turn higher following the release of the disappointing Chinese manufacturing data.
Chinese financials, which declined earlier in the day, were mostly higher. Bank of China Hong Kong shares rose 0.75%, Industrial and Commercial Bank of China traded up 0.5%, while China Construction Bank added 0.4%.
Property developers also contributed to gains, with Sino Land climbing 2.3% and Sun Hung Kai Properties up 1.65%.
Elsewhere, in Tokyo, the Nikkei ended at the lowest level in four weeks as a strengthening yen weighed on Japanese exporters.
Shares in industrial robot maker Fanuc dropped 1.1%, digital camera maker Canon declined 1.75%, while heavy machinery maker Komatsu, which counts China as its largest market, slumped 0.85%.
Troubled electronics manufacturer Sharp saw shares tumble 6% after rating agency Standard & Poor's cut its debt rating to “junk” and kept the company on negative watch for a possible further downgrade.
Meanwhile, shares in Australia edged modestly higher, after surprisingly weak retail sales data reinforced expectations for a rate cut by the Reserve Bank of Australia.
Retail sales dropped 0.8% in July, confounding expectations for a 0.2% increase.
Gold miner Newcrest Mining jumped 1.8% after gold prices rose to a five-month high, Rio Tinto gained 0.8%, but BHP Billiton traded down 1.35%.
Looking ahead, European stock market futures were little changed, as investors looked ahead to the European Central Bank's policy setting meeting and U.S. jobs data later in the week.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures dipped 0.05%, London’s FTSE 100 futures eased down 0.15%, while Germany's DAX futures pointed to a rise of 0.05% at the open.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while markets in the U.S. were to remain closed for the Labor Day holiday.
Speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy further supported gains following a speech by Fed Chairman Ben Bernanke on Friday.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.35%, Australia’s ASX/200 Index added 0.3%, while Japan’s Nikkei 225 Index ended down 0.6%.
Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand.
The data came after the China Federation of Logistics and Purchasing said over the weekend that its Purchasing Managers Index contracted for the first time in nine months in August, falling to 49.2 from 50.1 in July.
However, the disappointing data fuelled hopes policymakers in Beijing will introduce fresh stimulus measures to boost economic activity in the world’s second largest economy.
China is a crucial market for the region's exporters.
Market sentiment was further supported after Federal Reserve Chairman Ben Bernanke indicated that the U.S. central bank could implement fresh stimulus measures to strengthen the U.S. economic recovery.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, on Friday, Bernanke said the persistently high rate of unemployment was a “grave concern” and reiterated that the central bank was ready to provide additional policy accommodation as needed to shore up growth.
In Hong Kong, the Hang Seng turned erased losses to turn higher following the release of the disappointing Chinese manufacturing data.
Chinese financials, which declined earlier in the day, were mostly higher. Bank of China Hong Kong shares rose 0.75%, Industrial and Commercial Bank of China traded up 0.5%, while China Construction Bank added 0.4%.
Property developers also contributed to gains, with Sino Land climbing 2.3% and Sun Hung Kai Properties up 1.65%.
Elsewhere, in Tokyo, the Nikkei ended at the lowest level in four weeks as a strengthening yen weighed on Japanese exporters.
Shares in industrial robot maker Fanuc dropped 1.1%, digital camera maker Canon declined 1.75%, while heavy machinery maker Komatsu, which counts China as its largest market, slumped 0.85%.
Troubled electronics manufacturer Sharp saw shares tumble 6% after rating agency Standard & Poor's cut its debt rating to “junk” and kept the company on negative watch for a possible further downgrade.
Meanwhile, shares in Australia edged modestly higher, after surprisingly weak retail sales data reinforced expectations for a rate cut by the Reserve Bank of Australia.
Retail sales dropped 0.8% in July, confounding expectations for a 0.2% increase.
Gold miner Newcrest Mining jumped 1.8% after gold prices rose to a five-month high, Rio Tinto gained 0.8%, but BHP Billiton traded down 1.35%.
Looking ahead, European stock market futures were little changed, as investors looked ahead to the European Central Bank's policy setting meeting and U.S. jobs data later in the week.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures dipped 0.05%, London’s FTSE 100 futures eased down 0.15%, while Germany's DAX futures pointed to a rise of 0.05% at the open.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while markets in the U.S. were to remain closed for the Labor Day holiday.