Investing.com - Asian stock markets came off the lowest levels of the session during late Asian trade on Tuesday, following the release of data showing manufacturing activity in China improved to the highest level in five months in July.
Ongoing concerns over the euro zone’s debt crisis kept most indices in negative territory.
During late Asian trade, Hong Kong's Hang Seng Index was flat in post-storm market open, Australia’s ASX/200 Index eased up 0.1%, while Japan’s Nikkei 225 Index shed 0.25%.
Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to a five-month low of 49.5 in July from a final reading of 48.2 in June.
However, the number remained below the 50.0-mark separating expansion from contraction for the ninth consecutive month.
Meanwhile, concerns over the euro zone’s debt crisis intensified after ratings agency Moody’s put the triple-A rating of Germany, the Netherlands and Luxembourg on credit watch negative after the U.S. market close Monday.
Moody's cited the possibility of Greece's exit from the euro zone and the impact that would have on Spain and Italy.
The yield on Spanish 10-year bonds rose to a record 7.57% on Monday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full bailout after the state of Murcia followed Valencia in requesting financial aid from Madrid over the weekend.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout ahead of a meeting with the Troika later in the day.
In Tokyo, shares in exporters continued to come under pressure from a broadly stronger yen. The Japanese currency traded at an 11-year high against the euro and a 7-week top against the U.S. dollar.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Shares in Sharp lost 1.7% after the Nikkei business daily reported the firm was likely to have suffered a JPY100 billion loss in the April-June quarter, significantly higher than whisper numbers for a loss of JPY76 billion.
Toshiba shares tumbled 5.4% after a separate Nikkei report said that the company plans to cut NAND flash memory chip output by 30%, fuelling concerns over future earning prospects.
Meanwhile, in Hong Kong, the Hang Seng fluctuated between modest gains and losses after the city delayed opening of its markets due to heavy typhoon rains.
Shares in CNOOC were the biggest drag on the index, dropping 3.7% after it announced the acquisition of Canadian energy firm Nexen for approximately USD15.1 billion, a 61% premium to the last traded share price.
Index heavyweight HSBC Holdings slumped 0.35%, amid ongoing concerns over the euro zone debt crisis. Shares of Europe’s largest bank command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Elsewhere, shares in Australia eased up as shares in the mining sector recovered from the previous day’s sell-off. The China PMI data helped as well.
Mining heavyweights BHP Billiton and Rio Tinto advanced 1.4% and 0.75% respectively, while Newcrest Mining added 1.1%.
Shares in Billabong surged 19.1% after the struggling surf-wear company received a second takeover bid from private equity firm TPG International worth AUD694 million.
Looking ahead, the outlook for European stock markets was flat to mildly higher.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures eased up 0.2%, London’s FTSE 100 futures added 0.1%, while Germany's DAX futures pointed to a flat open.
Later Tuesday, the euro zone was to release preliminary data on manufacturing and service sector activity, while Germany and France were to release individual reports.
The U.S. was also to release preliminary data on manufacturing activity, while Federal Reserve Chairman Ben Bernanke was to speak.
Ongoing concerns over the euro zone’s debt crisis kept most indices in negative territory.
During late Asian trade, Hong Kong's Hang Seng Index was flat in post-storm market open, Australia’s ASX/200 Index eased up 0.1%, while Japan’s Nikkei 225 Index shed 0.25%.
Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to a five-month low of 49.5 in July from a final reading of 48.2 in June.
However, the number remained below the 50.0-mark separating expansion from contraction for the ninth consecutive month.
Meanwhile, concerns over the euro zone’s debt crisis intensified after ratings agency Moody’s put the triple-A rating of Germany, the Netherlands and Luxembourg on credit watch negative after the U.S. market close Monday.
Moody's cited the possibility of Greece's exit from the euro zone and the impact that would have on Spain and Italy.
The yield on Spanish 10-year bonds rose to a record 7.57% on Monday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full bailout after the state of Murcia followed Valencia in requesting financial aid from Madrid over the weekend.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout ahead of a meeting with the Troika later in the day.
In Tokyo, shares in exporters continued to come under pressure from a broadly stronger yen. The Japanese currency traded at an 11-year high against the euro and a 7-week top against the U.S. dollar.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Shares in Sharp lost 1.7% after the Nikkei business daily reported the firm was likely to have suffered a JPY100 billion loss in the April-June quarter, significantly higher than whisper numbers for a loss of JPY76 billion.
Toshiba shares tumbled 5.4% after a separate Nikkei report said that the company plans to cut NAND flash memory chip output by 30%, fuelling concerns over future earning prospects.
Meanwhile, in Hong Kong, the Hang Seng fluctuated between modest gains and losses after the city delayed opening of its markets due to heavy typhoon rains.
Shares in CNOOC were the biggest drag on the index, dropping 3.7% after it announced the acquisition of Canadian energy firm Nexen for approximately USD15.1 billion, a 61% premium to the last traded share price.
Index heavyweight HSBC Holdings slumped 0.35%, amid ongoing concerns over the euro zone debt crisis. Shares of Europe’s largest bank command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Elsewhere, shares in Australia eased up as shares in the mining sector recovered from the previous day’s sell-off. The China PMI data helped as well.
Mining heavyweights BHP Billiton and Rio Tinto advanced 1.4% and 0.75% respectively, while Newcrest Mining added 1.1%.
Shares in Billabong surged 19.1% after the struggling surf-wear company received a second takeover bid from private equity firm TPG International worth AUD694 million.
Looking ahead, the outlook for European stock markets was flat to mildly higher.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures eased up 0.2%, London’s FTSE 100 futures added 0.1%, while Germany's DAX futures pointed to a flat open.
Later Tuesday, the euro zone was to release preliminary data on manufacturing and service sector activity, while Germany and France were to release individual reports.
The U.S. was also to release preliminary data on manufacturing activity, while Federal Reserve Chairman Ben Bernanke was to speak.