By Gina Lee
Investing.com – Asia Pacific stocks were mostly down on Tuesday morning. The latest economic data from China was lower than expected, with the country’s latest regulatory tightening also casting a shadow on regional shares.
China’s Shanghai Composite inched down 0.03% by 9:44 PM ET (1:44 AM GMT) and the Shenzhen Component inched down 0.09%. Economic data released earlier in the day was disappointing, with the manufacturing purchasing managers’ index (PMI) at 50.1 and the non-manufacturing PMI at 47.5, below the 50-mark indicating growth, in August.
U.S.-listed Chinese video-gaming shares were also on a downward trend after Beijing limited video games playtime for minors, the latest regulatory tightening to take place in the country. The limitations mean that companies such as Tencent Holdings (OTC:TCEHY) Ltd. (HK:0700) and NetEase Inc. (HK:9999) can now only offer online gaming to the group from 8 p.m. to 9 p.m. on Fridays, weekends and public holidays.
Hong Kong’s Hang Seng Index was down 0.55%, giving up earlier gains.
Japan’s Nikkei 225 inched down 0.09% and South Korea’s KOSPI was down 0.24%. Australia was the sole bright spot, with the ASX 200 edging up 0.19%.
U.S. Treasuries also climbed, adding to the gains it has recorded since Federal Reserve Chairman Jerome Powell cautiously hinted at possible asset tapering and interest rate hikes at the previous week’s Jackson Hole symposium.
Global shares are on track to record a seventh monthly advance as August draws to a close, due to strong company profits and COVID-19 vaccination rates that reflect an ongoing economic recovery. However, depressed Treasury yields could reflect remaining concerns that COVID-19's Delta variant is still impacting the recovery.
Some investors remained optimistic.
“The bond market is getting a little nervous about the economic outlook. I actually think the economy is fundamentally strong. By year-end, if the economy holds up, which we forecast it will, that’s when we expect rates, especially in the long end, to start to edge higher,” TD Securities head of global interest rate strategy Priya Misra told Reuters.
In the U.S., pending home sales fell 1.8% month-on-month in July. The latest U.S. jobs report, including non-farm payrolls, is due on Friday.