Investing.com - Most Asian stocks traded lower Monday despite a reading of the HSBC flash Purchasing Managers' Index that shows China’s economy, the world’s second-largest, continues to improve.
Japanese markets were closed Monday in observance of a public holiday. Hong Kong’s Hang Seng will open later Monday after the morning session was postponed due to Tropical Cyclone Usagi. Usagi, which killed at least 25 people in China over the weekend, is rated as this year’s strongest storm.
It has been downgraded to a tropical depression. The storm dumped 70 centimeters (28 inches) of rain in Taiwan’s east on Sept. 21, left 12 people injured and disrupted more than 100 flights, Bloomberg reported.
The HSBC flash Purchasing Managers' Index jumped to a six-month high of 51.2 in September from 50.2 last month. The manufacturing survey is focused more on small and medium-sized companies.
"We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand. This will create more favorable conditions to push forward reforms, which should in turn boost mid- and long-term growth outlooks," said Hongbin Qu, chief China economist at HSBC.
Readings above 50 indicate expansion. The final reading from HSBC and Markit will be released on September 30 while the Chinese government releases its reading a day later.
Despite the good news out of China, Australia’s S&P/ASX 200 fell 0.51%. China is Australia’s largest export market.
New Zealand’s NZSE 50 dropped 0.72%. New Zealand also counts China as the top destination for its exports.
Asian stocks also appeared skittish due to lingering tapering fears out of the U.S. Last Friday, St. Louis Federal Reserve President James Bullard said the decision not to taper in September was "close" and did not rule out a small reduction in the central bank's bond purchases in October. The Fed will hold its next monetary policy meeting on Oct. 29-30.
South Korea’s Kospi rose 0.33% while Singapore’s Straits Times Index lost 0.71%. S&P 500 futures added 0.11% after the benchmark U.S. index slid 0.72% last Friday.
Japanese markets were closed Monday in observance of a public holiday. Hong Kong’s Hang Seng will open later Monday after the morning session was postponed due to Tropical Cyclone Usagi. Usagi, which killed at least 25 people in China over the weekend, is rated as this year’s strongest storm.
It has been downgraded to a tropical depression. The storm dumped 70 centimeters (28 inches) of rain in Taiwan’s east on Sept. 21, left 12 people injured and disrupted more than 100 flights, Bloomberg reported.
The HSBC flash Purchasing Managers' Index jumped to a six-month high of 51.2 in September from 50.2 last month. The manufacturing survey is focused more on small and medium-sized companies.
"We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand. This will create more favorable conditions to push forward reforms, which should in turn boost mid- and long-term growth outlooks," said Hongbin Qu, chief China economist at HSBC.
Readings above 50 indicate expansion. The final reading from HSBC and Markit will be released on September 30 while the Chinese government releases its reading a day later.
Despite the good news out of China, Australia’s S&P/ASX 200 fell 0.51%. China is Australia’s largest export market.
New Zealand’s NZSE 50 dropped 0.72%. New Zealand also counts China as the top destination for its exports.
Asian stocks also appeared skittish due to lingering tapering fears out of the U.S. Last Friday, St. Louis Federal Reserve President James Bullard said the decision not to taper in September was "close" and did not rule out a small reduction in the central bank's bond purchases in October. The Fed will hold its next monetary policy meeting on Oct. 29-30.
South Korea’s Kospi rose 0.33% while Singapore’s Straits Times Index lost 0.71%. S&P 500 futures added 0.11% after the benchmark U.S. index slid 0.72% last Friday.