Most Asian stocks lower after China PMI; Nikkei down 0.58%

Investing.com - Most Asian stocks fell Wednesday following of another disappointing manufacturing data point out of China, the world’s second-largest economy.

In Asian trading Wednesday, Japan’s Nikkei 225 fell 0.58%. Earlier Wednesday, official data showed Japan’s trade balance was in deficit for a 12th consecutive month. Japanese exports rose 7.4% last month, but that was below the 10.3% increase analysts expected.

Exports to China rose 4.8% while exports to the U.S. surged 14.6% compared with 16.3% in May, according to the data. China and the U.S. are Japan’s two largest export markets. Imports rose 11.8%, but that was below the 13.6% increase analysts expected. Japan’s overall trade deficit was JPY180.8 billion. Analysts expected a deficit of JPY160.6 billion.

Hong Kong’s Hang Seng dropped 0.45% while the Shanghai Composite slid 0.92%. after the flash HSBC/Markit Purchasing Managers' Index fell to 47.7 for July. Last month, the HSBC PMI fell to a nine-month low of 48.2. Readings below 50 indicate contraction. The July reading is an 11-month low. The HSBC reading comes a week before the official government data.

The employment index fell to 47.3 in July, the lowest level since March 2009. That index has been below 50 for four straight months. The new orders sub-index fell to its lowest level in 11 months, and stayed below 50 for a third straight month. Output declined to 10-month low and remained in contraction for a second month, according to Reuters.

Despite the glum China data, Australia’s S&P/ASX 200 Index gained 0.2%. China is Australia’s largest export market.

New Zealand’s NZSE 50 rose 0.23% after New Zealand reported a June trade surplus of NZD414 million, far better than the NZD100 million analysts expected. NZD/USD slid on the China news as New Zealand also sends the bulk of its exports to China.

Singapore’s Straits Times Index inched down 0.02% while South Korea’s Kospi rose 0.16%. S&P 500 futures nudged down 0.04% a day after the benchmark U.S. index fell 0.19%.