Investing.com - Most Asian stocks traded lower Monday following another disappointing economic data point out of China, the world’s second-largest economy.
In Asian trading Monday, Japan’s Nikkei 225 dropped 2.17% after the the International Monetary Fund warned Japan that the yen is weak enough, reversing comments where it said the Japanese currency was overvalued. The IMF said "We appreciate that the attempt to escape deflation has had an effect on the exchange rate and our assessment is right now that leaves the exchange rate moderately below what would be consistent with medium-term norms."
A study by the Peterson Institute for International Economics, a Washington-based think tank, echoed those comments. That group said the yen has fallen too far and that the Group of Seven nations may consider intervening the foreign currency market in an effort to stem the tide of their currencies’ gains against the yen.
Hong Kong’s Hang Seng rose 0.36% while the Shanghai Composite inched up 0.10% even after China's unofficial HSBC manufacturing PMI report fell to 49.2 in May from 50.4 in April.
"Despite operating conditions worsening, manufacturing output rose for the seventh month in a row during May, albeit marginally. Behind the meagre expansion of output, total new orders declined modestly and for the first time since last September. Demand from abroad also weakened over the month, with new export orders falling for the second month in a row. A number of panellists suggested reduced client demand, particularly in the US, had led to the overall reduction in export orders," according to a statement by Markit.
Over the weekend, China’s National Bureau of Statistics said the country’s official PMI for May rose to 50.8 from 50.6 in April. That topped the 50.1 reading economists expected. Readings above 50 indicate expansion.
Australia’s S&P/ASX 200 Index fell 0.20% following the Chinese data and on news that retail sales in Australia rose less-than-expected last month. The Australian Bureau of Statistics said that Australian retail sales rose 0.2% last month on a seasonally adjusted basis last month after falling 0.4% in April. Economists expected a May increase of 0.3%.
Markets in New Zealand were closed Monday for a public holiday.
South Korea’s Kospi inched down 0.07% after the Korea National Statistical Office said that South Korean consumer price inflation fell to 1% last month from 1.2% in April. Analysts had expected South Korean CPI to remain unchanged at 1.2% in May.
Singapore’s Straits Times Index dropped 0.56%. S&P 500 futures rose 0.25%. The benchmark U.S. index lost 1.2% last week, but finished May, historically a weak month for U.S. equities, with a gain of better than 2%.
In Asian trading Monday, Japan’s Nikkei 225 dropped 2.17% after the the International Monetary Fund warned Japan that the yen is weak enough, reversing comments where it said the Japanese currency was overvalued. The IMF said "We appreciate that the attempt to escape deflation has had an effect on the exchange rate and our assessment is right now that leaves the exchange rate moderately below what would be consistent with medium-term norms."
A study by the Peterson Institute for International Economics, a Washington-based think tank, echoed those comments. That group said the yen has fallen too far and that the Group of Seven nations may consider intervening the foreign currency market in an effort to stem the tide of their currencies’ gains against the yen.
Hong Kong’s Hang Seng rose 0.36% while the Shanghai Composite inched up 0.10% even after China's unofficial HSBC manufacturing PMI report fell to 49.2 in May from 50.4 in April.
"Despite operating conditions worsening, manufacturing output rose for the seventh month in a row during May, albeit marginally. Behind the meagre expansion of output, total new orders declined modestly and for the first time since last September. Demand from abroad also weakened over the month, with new export orders falling for the second month in a row. A number of panellists suggested reduced client demand, particularly in the US, had led to the overall reduction in export orders," according to a statement by Markit.
Over the weekend, China’s National Bureau of Statistics said the country’s official PMI for May rose to 50.8 from 50.6 in April. That topped the 50.1 reading economists expected. Readings above 50 indicate expansion.
Australia’s S&P/ASX 200 Index fell 0.20% following the Chinese data and on news that retail sales in Australia rose less-than-expected last month. The Australian Bureau of Statistics said that Australian retail sales rose 0.2% last month on a seasonally adjusted basis last month after falling 0.4% in April. Economists expected a May increase of 0.3%.
Markets in New Zealand were closed Monday for a public holiday.
South Korea’s Kospi inched down 0.07% after the Korea National Statistical Office said that South Korean consumer price inflation fell to 1% last month from 1.2% in April. Analysts had expected South Korean CPI to remain unchanged at 1.2% in May.
Singapore’s Straits Times Index dropped 0.56%. S&P 500 futures rose 0.25%. The benchmark U.S. index lost 1.2% last week, but finished May, historically a weak month for U.S. equities, with a gain of better than 2%.