China PMI Data, Stocks, Currencies, Oil

SINGAPORE – Chinese markets rose Thursday as government data showed manufacturing activity grew in June but most other Asia-Pacific indices fell.

The Shenzhen component: won almost 2%, and the Shanghai composite advanced 1.31%.

The Hang Seng Index in Hong Kong had risen fractionally. Shares of artificial intelligence software company SenseTime plunged as much as 50.5% on Thursday after a six-month freeze period for some of its shares ended. The stock was recently 44.22% lower.

The Nikkei 225 in Japan fell 1.49%, while the Topix fell 1.21%.

In Australia, the S&P/ASX 200 decreased by 0.92%.

South Korea’s Kospic fell 1%, while the Kosdaq was down 1.33%.

MSCI’s broadest index of stocks in Asia-Pacific fell 0.48%.

The bottom line is that jumping on softer economic data remains risky until inflation data shows sustained moderation.

In economic news, China’s official manufacturing purchasing managers’ index for June was at 50.2, slightly lower than the expected 50.5, according to a Reuters poll.

The 50-point figure separates growth from contraction on a monthly basis and the index has been below 50 since March.

Factory production in South Korea grew slightly in May, government data. Industrial production increased by 0.1% compared to April. Service sector output grew 1.1% in May.

Industrial production in Japan fell 7.2% in May, according to government data. That figure was much lower than market consensus and could have been impacted by lockdowns in China, Rob Carnell, ING’s regional head of research in Asia-Pacific, wrote in a note Thursday.

In company news, Toyota Engine missed its monthly production target in May for the third straight month, Reuters reports that. Shares of the company fell 1.2% on Thursday.

Stock Selection and Investment Trends from CNBC Pro:

Overnight in the US, Stocks fluctuated Wednesday after the major averages failed in the previous session’s recovery attempt, and as the market prepares to close out the worst first half of the year since 1970.

The Dow Jones Industrial Average closed the session up 82.32 points, or 0.27%, to 31,029.31 as the other benchmarks closed slightly lower. The S&P 500 fell 0.07% to 3,818.83 and the tech-heavy Nasdaq Composite fell 0.03% to 11,177.89.

Interest rate hikes, recession fears and inflation concerns have plagued the market.

ANZ Research said in a note Thursday that markets are “cautious and not holding strong convictions” as central bankers say they will prioritize tackling inflation.

“Basically, until inflation data shows sustained moderation, it remains risky to jump on softer economic data and declare that the spike in central bank interest rates has been priced in for this cycle,” the note said.

Currencies and Oil

Leave a Comment

Your email address will not be published. Required fields are marked *