Asia Stocks Dive Lower as Data Reveal U.S. Manufacturing Downtrend
March 25, 2014 8:22 am
Asian stocks decline, trimming down the largest surge in a month for the regional benchmark index yesterday, as data displayed a slowdown in U.S. manufacturing and investors weighed the prospect of a recession in Russia.
The MSCI Asia Pacific Index inched down 0.1 percent to 134.19 as of 11:09 a.m. in Tokyo after bolstering 1.2 percent yesterday, the sharpest surge since February 21. Six of the 10 industry groups on the gauge slide lower. Banks warned Russia’s economy is at risk of plunging as the world’s leading industrial powers threaten further penalties to deter it from invading other parts of Ukraine after the annexation of Crimea.
The U.S. factory data “is a little bit weaker, but nothing changed much,” said Donald Williams, Sydney-based chief investment officer who aids manage about $1.6 billion at Platypus Asset Management Ltd. in Sydney. “It’s a grinding recovery and some of the data are better than expected and some are worse.”
Tongda Group Holdings Ltd., a supplier of consumer electronic goods, relinquished 6.3 percent in Hong Kong after putting 600 million new shares. Sekisui House Ltd. gave up 1.9 percent after saying it found defects in a Tokyo residential complex being establish by Taisei Corp.
Japan’s Topix Index backslide 0.1 percent, while South Korea’s Kospi index dive 0.2 percent lower. Australia’s S&P/ASX 200 Index downgraded 0.5 percent and New Zealand’s NZX 50 Index was slightly altered.
Hong Kong’s Hang Seng Index deprecated 0.3 percent. The Hang Seng China Enterprises Index of mainland shares exchanged in the city pulled back 0.1 percent. The Shanghai Composite Index missed 0.1 percent. Taiwan’s Taiex index soared 0.5 percent, while Singapore’s Straits Times Index dropped 0.2 percent.
Futures on the Standard & Poor’s 500 Index rallied 0.1 percent today after the measure plummeted 0.5 percent yesterday.
Slowing Manufacturing
A Markit Economics Ltd. preliminary index of U.S. manufacturing decline to 55.5 in March from 57.1 a month earlier, the group based in London declared yesterday. Economists had expected a reading of 56.5. A mark over 50 signifies development and this month’s reading was the second-topmost since January 2013.
China’s manufacturing industry sagged down for a fifth consecutive month, a preliminary China Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics revealed yesterday. Indications of faltering factory output in the world’s two largest economies come as U.S. policy makers rein in stimulus and as Chinese lawmakers pledge to continue development while curbing shadow banking and credit expansion.
Penalties imposed by the U.S. and the European Union are pushing Russia toward a recession as the intensity of their economic sanctions hike after the annexation of Crimea earlier this month.
Economic Penalties
Banks including state-run VTB Capital say the world’s ninth-largest economy will pullback for at least two quarters as sanctions for annexing Crimea rattle markets, curb investment and lifts the cost of borrowing. Penalties that have so far focused on individuals with asset freezes and visa bans may be expanded to target various part of the economy.
The Group of Seven major powers finalized to do a summit in Brussels in June instead of a planned G-8 assembly in Sochi in the latest penalties versus Russia. U.S. President Barack Obama and his fellow G-7 leaders met in The Hague to agree on the next moves in the dispute, in the middle of surging concern that Russia is building up its forces on the border with Ukraine.
The Asia-Pacific gauge exchanged at 12.6 times forecasted profits as of yesterday, compared with 15.8 for the S&P 500 and 14.2 for the Stoxx Europe 600 Index, based from the data gathered by Bloomberg.
The material has been provided by InstaForex Company – www.instaforex.com
Asian stocks decline, trimming down the largest surge in a month for the regional benchmark index yesterday, as data displayed a slowdown in U.S. manufacturing and investors weighed the prospect of a recession in Russia.
The MSCI Asia Pacific Index inched down 0.1 percent to 134.19 as of 11:09 a.m. in Tokyo after bolstering 1.2 percent yesterday, the sharpest surge since February 21. Six of the 10 industry groups on the gauge slide lower. Banks warned Russia’s economy is at risk of plunging as the world’s leading industrial powers threaten further penalties to deter it from invading other parts of Ukraine after the annexation of Crimea.
The U.S. factory data “is a little bit weaker, but nothing changed much,” said Donald Williams, Sydney-based chief investment officer who aids manage about $1.6 billion at Platypus Asset Management Ltd. in Sydney. “It’s a grinding recovery and some of the data are better than expected and some are worse.”
Tongda Group Holdings Ltd., a supplier of consumer electronic goods, relinquished 6.3 percent in Hong Kong after putting 600 million new shares. Sekisui House Ltd. gave up 1.9 percent after saying it found defects in a Tokyo residential complex being establish by Taisei Corp.
Japan’s Topix Index backslide 0.1 percent, while South Korea’s Kospi index dive 0.2 percent lower. Australia’s S&P/ASX 200 Index downgraded 0.5 percent and New Zealand’s NZX 50 Index was slightly altered.
Hong Kong’s Hang Seng Index deprecated 0.3 percent. The Hang Seng China Enterprises Index of mainland shares exchanged in the city pulled back 0.1 percent. The Shanghai Composite Index missed 0.1 percent. Taiwan’s Taiex index soared 0.5 percent, while Singapore’s Straits Times Index dropped 0.2 percent.
Futures on the Standard & Poor’s 500 Index rallied 0.1 percent today after the measure plummeted 0.5 percent yesterday.
Slowing Manufacturing
A Markit Economics Ltd. preliminary index of U.S. manufacturing decline to 55.5 in March from 57.1 a month earlier, the group based in London declared yesterday. Economists had expected a reading of 56.5. A mark over 50 signifies development and this month’s reading was the second-topmost since January 2013.
China’s manufacturing industry sagged down for a fifth consecutive month, a preliminary China Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics revealed yesterday. Indications of faltering factory output in the world’s two largest economies come as U.S. policy makers rein in stimulus and as Chinese lawmakers pledge to continue development while curbing shadow banking and credit expansion.
Penalties imposed by the U.S. and the European Union are pushing Russia toward a recession as the intensity of their economic sanctions hike after the annexation of Crimea earlier this month.
Economic Penalties
Banks including state-run VTB Capital say the world’s ninth-largest economy will pullback for at least two quarters as sanctions for annexing Crimea rattle markets, curb investment and lifts the cost of borrowing. Penalties that have so far focused on individuals with asset freezes and visa bans may be expanded to target various part of the economy.
The Group of Seven major powers finalized to do a summit in Brussels in June instead of a planned G-8 assembly in Sochi in the latest penalties versus Russia. U.S. President Barack Obama and his fellow G-7 leaders met in The Hague to agree on the next moves in the dispute, in the middle of surging concern that Russia is building up its forces on the border with Ukraine.
The Asia-Pacific gauge exchanged at 12.6 times forecasted profits as of yesterday, compared with 15.8 for the S&P 500 and 14.2 for the Stoxx Europe 600 Index, based from the data gathered by Bloomberg.
The material has been provided by InstaForex Company – www.instaforex.com
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