Asia stocks fall on weak China PMI data; Nikkei ends down 0.4%
Investing.com
Published May 01, 2013 02:40AM ET
Markets in Japan retreated for a second day as the U.S. dollar weakened against the yen, weighing on exporters.
During late Asian trade, Australia’s ASX/200 Index ended down 0.5%, while Japan’s Nikkei 225 Index closed 0.4% lower.
Trading volumes were light as many regional markets were closed for Labor Day, including those in mainland China, Hong Kong, India, South Korea, Taiwan and Singapore.
Midway through the session, the state-affiliated China Federation of Logistics and Purchasing said that its manufacturing activity index fell to 50.6 in April from March’s reading of 50.9.
In Australia, the benchmark ASX/200 Index retreated from the previous session’s five-year high, as miners came under pressure following the downbeat China data. Australian commodity producers are heavily reliant on Chinese demand for raw materials.
Mining heavyweights BHP Billiton and Rio Tinto slumped 1.7% and 1.6% respectively, while Medusa Mining tumbled 6.2%.
Stocks came under additional pressure after the Australian Industry Group said its manufacturing index plunged 7.7 points to a four-year low of 36.7 last month.
Meanwhile, in Tokyo, the Nikkei ended lower for the second consecutive day, as the yen strengthened to near a two-week high against the U.S. dollar. The greenback moved further away from the key JPY100 level, with USD/JPY falling to a session low of 97.46.
In earnings news, troubled electronics maker Sharp saw shares drop 5% after reporting a worse-than-expected USD5.1 billion net loss in the year that ended March 31.
Other big name exporters were also lower, with Sony and Canon losing 1.9% and 1.6% apiece, while automakers Toyota and Honda declined 1.6% and 1.4% respectively.
Looking ahead, European stock market futures pointed to a steady open, as traders awaited the outcomes of the Federal Reserve’s policy meeting later in the session.
France’s CAC 40 futures pointed to a flat open, London’s FTSE 100 futures eased up 0.1%, while Germany's DAX futures pointed to a gain of 0.1% at the open.
Trade volumes were expected to remain thin on Wednesday, with many markets in Europe closed for the Labor Day holiday.
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