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Asia stocks dip on weak U.S. manufacturing data; Nikkei down 0.42%

Published 12/03/2012, 10:05 PM
Updated 12/03/2012, 10:06 PM
UK100
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FCHI
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PL
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Investing.com - Asian stocks fell on Tuesday after a closely-watch U.S. manufacturing index disappointed earlier, dampening appetite for equities and other higher-yielding asset classes.

During Asian trading on Tuesday, Hong Kong's Hang Seng Index was down 0.17%, Australia's S&P/ASX200 was down 0.28%, while Japan’s Nikkei 225 Index was down 0.42%.

Poor manufacturing data in the U.S. and in Europe watered down an earlier rally in previous sessions stemming from Greek and Spanish financial decisions seen as positives steps towards firewalling and extinguishing the European debt crisis.

A final eurozone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March though still stuck in contraction territory for the 16th consecutive month.

Meanwhile in the U.S., manufacturing activity weakened unexpectedly in November, shrinking for the first time in three months.

In a report, the Institute for Supply Management revealed that its index of purchasing managers fell to 49.5 in November from 51.7 in October.

Analysts had expected the ISM index of purchasing managers to decline to only 51.3 in November.

Investors chased safe-haven yen and dollar positions and looked past more positive events taking place in Europe.

Earlier, Greece announced plans to buy back EUR10 billion in government debt, a requirement for Athens to tap bailout packages totaling EUR44 billion.

Spain, meanwhile, officially submitted a request for EUR37 billion in aid to prop up its banking sector, which has already won E.U. approval.

In Hong Kong, top decliners included Sino Land, down 1.81%, Hengan INTL, down 1.72%, and New World Development, down 1.38%.

In Australia, top decliners included Aquarius Platinum, down 5.80%, Mesoblast, down 5.07%, and Integra Mining, down 4.67%.

European stock futures indicated a mixed opening.

France's CAC 40 futures pointed to a loss of 0.03%, while Germany's DAX 30 futures pointed to a loss of 0.11%. Meanwhile in the U.K., FTSE 100 futures were up 0.03%.

Dow Jones Industrial Average futures were down 0.11%, while the S&P 500 futures were down 0.13%.

Markets are awaiting a Reserve Bank of Australia decision on interest rates due for release later Tuesday.








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