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Asian shares down on weak China PMI | Asian shares down on weak China PMI |
(about 5 hours later) | |
Asian markets started the week with losses as investors' confidence was dented by China's manufacturing data. | Asian markets started the week with losses as investors' confidence was dented by China's manufacturing data. |
The official purchasing managers' index (PMI) on Sunday showed that factory activity unexpectedly shrank in October to 49.8, below the 50-point mark, which suggests contraction. | |
It is also marks the third consecutive month of contraction in manufacturing. | It is also marks the third consecutive month of contraction in manufacturing. |
The Shanghai Composite fell 1% to 3,350.45, while Hong Kong's Hang Seng index lost 0.9% to 22,445.38 points. | |
A private survey, which focuses on smaller to mid-size firms, also showed on Monday that factory activity fell for the eight month in a row in October, but it was an improvement from the previous month. | |
The Caixin/Markit manufacturing PMI was up to 48.3, from 47.2 in September. | |
Angus Nicholson, market analyst at trading firm IG, said manufacturing activity in China should pick up in the last few months of the year. | |
"The key takeaway from the manufacturing PMIs is that activity in China has stabilised in the wake of significant monetary easing and fiscal spending," he said in a note. | |
Rest of Asia | |
Japan's benchmark Nikkei 225 index ended down 2.1% to 18,683.24 - leading the losses in the region. | |
Investors are awaiting earnings from major exporters such as Nissan, due out later in the day. | |
The focus is also on US data, with key employment figures due on Friday, which could influence the timing of the Federal Reserve's highly anticipated decision to raise interest rates. | |
In Australia, the benchmark S&P/ASX 200 closed down 1.4% to 5,165.80 ahead of the central bank's decision on interest rates on Tuesday. | |
The Reserve Bank of Australia (RBA) is expected to keep interest rates at a record low of 2%. | The Reserve Bank of Australia (RBA) is expected to keep interest rates at a record low of 2%. |
Westpac shares were down 2.5% after it wrapped up Australia's bank reporting season, seeing a 3% rise in its annual cash profit. | |
The country's four major banks are preparing for their slowest earnings growth since the global financial crisis, due to low interest rates and a cooling economy. | |
Bucking the trend, South Korea's Kospi index finished up 0.3% to 2,035.24 points. |