Asian stocks dip on weak PMIs, China rebounds as state steps in
Investing.com-- Most Asian stocks extended recent losses on Tuesday following weak business activity readings from Japan and Australia, while Chinese markets rebounded from pre-pandemic lows as a state-run fund began snapping up some equities.
Weak sentiment- amid persistent concerns over the Israel-Hamas war- kept any major gains limited.
While diplomatic missions to deescalate the conflict appeared to have shown some progress, missile attacks between Israel and Gaza continued. Markets were also edge over a looming Israeli ground assault on Gaza, which could mark an escalation in the conflict.
Easing Treasury yields, which retreated from multi-year peaks hit earlier this month, offered some support to stock markets, although the technology sector remained under pressure.
Japan’s Nikkei 225 fell 0.4%, while the TOPIX slid 1% after purchasing managers’ index (PMI) data showed that Japanese manufacturing activity shrank more than expected in October, while growth in the services sector deteriorated.
The readings indicated persistent weakness in Asia’s second-largest economy, as it struggles with a resurgence in inflation.
Australia’s ASX 200 rose 0.1%, reversing some early losses and rebounding in tandem with Chinese stocks. But PMI data showed both Australian manufacturing and services activity remained in contraction through October.
Focus is now on PMI readings from the U.S., due later in the day.
China’s Shanghai Shenzhen CSI 300 index rose 0.4%, recovering from its lowest level since January 2019, while the Shanghai Composite added 0.7%, rebounding from a 11-month low.
Central Huijin Investment Co, a Chinese sovereign fund, said it purchased some exchange-traded funds (ETF) this week to support local stock
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