Asian stocks sink on more China weakness; data-heavy week looms
Investing.com-- Most Asian stocks fell on Monday tracking weak signals from China, while anticipation of a string of key economic readings this week kept markets largely on edge.
Chinese stocks were the worst performers for the day, with the Shanghai Shenzhen CSI 300 and SSEC indexes down 1.1% and 0.7%, respectively, after data showed a sustained decline in the country’s industrial profits. Hong Kong’s Hang Seng index lost 0.7%, weighed chiefly by mainland stocks.
The readings showed that China’s biggest economic engines remained under pressure, and also came as investor grew impatient over more stimulus measures from Beijing.
Focus this week is now on key purchasing managers index readings from China for November, due Thursday. The readings are expected to offer more cues on business activity, after a surprisingly weak batch of PMIs in October.
Concerns over China pulled broader Asian indexes lower, given the country’s role as a dominant trading destination for the region. Australian commodity stocks were particularly hit by this trade, which in turn saw the ASX 200 index sink 0.4%.
Key readings on Australian inflation and retail sales are also on tap later this week, and are expected to factor into the Reserve Bank’s plans for interest rates. Governor Michele Bullock had recently warned that inflation may remain stickier than expected in the coming months.
Japan’s Nikkei 225 fell 0.5%, retreating after racing to 33-year highs last week. A batch of weak PMIs raised concerns over slowing business activity in the country, which is grappling with weak demand in its biggest export markets. Still, the prospect of a dovish-for-longer Bank of Japan has largely underpinned Japanese stocks this year, with the Nikkei on
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