Investing.com - Most Asian stocks traded lower Monday following more concerning economic news out China, the world’s second-largest economy.
In Asian trading Monday, Japan’s Nikkei 225 lost 0.48% despite bullish tankan manufacturing data. Earlier Monday, the Bank of Japan's tankan survey showed surprisingly positive sentiment among large manufacturers in the world’s third-largest economy.
The sentiment reading for large manufacturing enterprises jumped to 4 from a previous reading of -8. Economists expected readings ranging from 3 to 4.
The reading applies to the second quarter and is the first positive reading in two years. Sentiment among large non-manufacturers jumped to 12 from 6 in the first quarter. The survey also showed sentiment among mid-sized manufacturers improved to -4 from -14.
Hong Kong’s Hang Seng was closed for a holiday while the Shanghai Composite inched up 0.10% after China’s official June PMI reading came in at 50.1 compared with the expected reading of 50 and 50.8 in May. Readings above 50 indicate expansion.
However, the HSBC/Markit Purchasing Managers' Index (PMI) for June fell to 48.2, the lowest level since September 2012 and below the May reading of 49.2.
Australia’s S&P/ASX 200 Index fell 1.1% following the Chinese data. China is Australia’s largest exporter partner. Earlier Monday, a media report said that Macquarie, Australia’s largest investment bank, could increase its earnings 1.4% for every one cent AUD/USD declines. The bank derives nearly two-thirds of its revenue from outside of Australia.
New Zealand’s NZSE 50 fell dropped 0.18%. That country also counts China as its largest export market.
South Korea’s Kospi shed 0.28% after the Korea National Statistical Office said that South Korea’s trade balance fell to a seasonally adjusted 5.50 billion won in the second quarter from 5.92 billion won in the first quarter. That is still better than the decline to 5.26 billion won analysts expected.
Singapore’s Straits Times Index fell 0.44% while S&P 500 futures dropped 0.24%.