Data show Chinese factory activity contracted in April


SINGAPORE — Shares in Asia-Pacific were lower in Monday morning trade, with data released over the weekend showing Chinese factory activity contracted in April.

In Japan, the Nikkei 225 fell 0.54% as shares of robot maker Fanuc dropped about 3%. The Topix index also shed 0.38%. South Korea’s Kospi traded 0.5% lower.

Australia stocks declined, with the S&P/ASX 200 falling 1.41%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.55% lower.

Chinese economic data released over the weekend may weigh on regional investor sentiment Monday. China’s factory activity contracted at a steeper pace in April as Covid lockdowns hit industrial production.

The official manufacturing Purchasing Managers’ Index for April declined to 47.4, a second straight month of contraction following with March’s reading of 49.5, data from the National Bureau of Statistics showed Saturday.

The 50-point mark in PMI readings separates growth from contraction. PMI readings are sequential and represent month-on-month expansion or contraction.

A private survey also showed contraction in Chinese factory activity, with the Caixin/Markit manufacturing PMI coming in at 46, declining from the previous month’s reading of 48.1.

“Omicron and the government’s zero-covid policy were the main culprits for China’s activity decline in April, halting industrial production and disrupting supply chains,” Rodrigo Catril of National Australia Bank wrote in a note.

“A sharp Chinese economic slowdown in the second quarter remains a realistic outcome at this stage and if history is any guide, global hit to growth would follow shortly after,” said Catril, a currency strategist at the firm.

Stock picks and investing trends from CNBC Pro:

The data come as mainland China has been grappling for weeks with its worst Covid outbreak since 2020.

Markets in Hong Kong, mainland China, Singapore and Taiwan are closed on Monday for a holiday.

Currencies and oil



Source link

Denial of responsibility! galaxyconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave A Reply

Your email address will not be published.