Asian shares set for worst month since Feb on China gloom
Asian shares were set for the worst month since February, with sentiment hurt by still-gloomy China factory activity, while investors were also cautious ahead of a barrage of U.S. data that could add to bets that interest rates have peaked.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1% but was still headed for a monthly loss of 5.9%, the largest since February.
Japan's Nikkei gained 0.5%, bringing its monthly loss to 2%.
Data on Thursday showed China's manufacturing activity contracted for a fifth straight month in August, and the expansion in services sector lost a little momentum.
Chinese blue-chips were flat but a 2.5% rebound in property stocks boosted Hong Kong's Hang Seng Index, which rose 0.7%.
Two of China's biggest cities on Wednesday eased mortgage curbs, allowing home buyers to enjoy preferential loans for first-home purchases regardless of their previous credit record.
However, concerns remain, with China's largest private property developer Country Garden warning of default risks if its financial performance continues to deteriorate, after posting a record first half loss.
Barring the China gloom, investor confidence jumped in August, with a global confidence index (ICI) from State Street Global Markets surging 11.4 points to 107.7, led by North America which recorded the strongest reading in a year on easing recession fears.
«Investor confidence saw its biggest jump in 18 months, with the Global ICI now solidly in risk-seeking territory, as risk appetite improved in every region this month,» said Marvin Loh, senior global macro strategist at State Street Global Markets.
Overnight, Wall Street rose after a slew of U.S. economic indicators generally surprised to the downside, adding to
