SINGAPORE– Shares in Asia-Pacific were blended on Tuesday, as information revealed slowing Chinese factory activity development in August.
In mainland China, the Shanghai composite increased 0.45% to close at 3,54394 while the Shenzhen part shed 0.659% on the day to 14,32838
China’s factory activity grew at a slower rate in August as compared to the previous month, information launched Tuesday revealed. The main production Purchasing Managers’ Index for August can be found in at 50.1, versus July’s reading of 50.4.
Meanwhile, the main non-manufacturing PMI for August can be found in at 47.5– its least expensive reading given that the height of the pandemic in early 2020.
PMI readings above 50 represent growth, while those listed below that level signal contraction. PMI readings are consecutive and represent month-on-month growth or contractions.
“I think these numbers confirm what a lot of other data has been suggesting for a while now that the Chinese economy is slowing down,” Jonathan Pain, author of The Pain Report, informed CNBC’s “Street Signs Asia” on Tuesday.
“China was the first into this pandemic and the first out of it as such and I think now we’re beginning to see a much more broadening kind of slowing in the overall economy,” Pain stated.
Tencent, Netease shares blended
Hong Kong- noted shares of Tencent and Netease were blended amidst regulative worries. Tencent recuperated from earlier losses to increase 3.31% on Tuesday while Netease dropped 2.07%.
That followed brand-new guidelines released Monday by China’s National Press and Publication Administration revealed strategies to restrict the time that those under 18 years invest playing computer game to simply 3 hours a week.
Hong Kong’s wider Hang Seng index increased 1.33% to close at 25,87899
In Japan, the Nikkei 225 increased 1.08% to close at 28,08954 while the Topix index advanced 0.54% to end up the trading day at 1,96070 South Korea’s Kospi leapt 1.75% to close at 3,19927
Elsewhere, the S&P/ ASX 200 in Australia edged 0.41% greater.
MSCI’s broadest index of Asia-Pacific shares outside Japan increased 1.34%.
Currencies and oil
The U.S. dollar index, which tracks the greenback versus a basket of its peers, was at 92.502 after its decrease recently from above 93.0.
The Japanese yen traded at 109.84 per dollar, weaker than levels listed below 109.8 seen versus the greenback the other day. The Australian dollar was at $0.733, versus an earlier low of $0.7286
Oil rates were lower throughout the afternoon of Asia trading hours, with global criteria Brent unrefined futures down 0.93% to $7273 per barrel. U.S. unrefined futures decreased 1.13% to $6843 per barrel.
— CNBC’s Arjun Kharpal and Lauren Feiner added to this report.
