AFP
Asian stocks slipped yesterday after an HSBC report showed the performance of China’s service sector fell to a record low in July, and despite a positive lead from Wall Street.
The HSBC China services Purchasing Managers’ Index in July slipped to 50.0, the dividing line between expansion and contraction, down from 53.1 in June.
“The weakness in the headline number likely reflects the impact of the ongoing property slowdown in many cities, as property-related activity, such as agencies and residential services, see less business,” Qu Hongbin, HSBC Chief Economist for China, said in a statement.
Tokyo’s Nikkei fell 1.00% or 154.19 points to close at 15,320.31, Sydney dropped 22.3 points, or 0.40%, to finish at 5,518.6, and Seoul shed 0.68%, or 14.16 points, to end at 2,066.26.
Hong Kong closed up 0.20% or 48.18 points to 24,648.26, while Shanghai slipped 0.15%, or 3.38 points, to 2,219.95. Shenzhen rose 0.72%, or 8.4 points, to 1,172.76.
In other markets, Bangkok rose 0.63% or 9.60 points to 1,528.98; telecoms company True Corp soared 8.16% to 10.60 baht, while hospitality firm Minor International gained 4.76% to 33baht.
Jakarta ended down 0.20%, or 10.16 points, at 5,109.09; tin miner Timah gained 2.14% to 1,430 rupiah, while palm oil firm Wilmar Cahaya Indonesia fell 9.72% to 2,275 rupiah.
Kuala Lumpur shed 0.43%, or 8.02 points, to close at 1,863.34; Malaysia Airlines System gained 2.17% to close at 0.24 ringgit, Cycle & Carriage Bintang shed 2.53% to end lower at 2.31 ringgit, and Sime Darby closed 0.52% lower on 9.51 ringgit.
Singapore rose 0.28%, or 9.27 points, to 3,327.67; United Overseas Bank was down 0.61% to Sg$22.80 while oil rig maker Keppel Corp gained 0.83% to Sg$10.89.
Taipei shed 2.02%, or 188.75 points, to 9,141.44; Taiwan Semiconductor Manufacturing Co lost 3.24% to Tw$119.5, while Hon Hai Precision was off 3.32% to Tw$102.0. Wellington was up 0.26% or 13.48 points at 5,104.16; Air New Zealand rose 2.40% at NZ$1.92 and Fletcher Building was flat at NZ$8.82.
Traders also said an overnight recovery in US stocks failed to follow through in Asia.
In the US, the Dow Jones Industrial Average rose 0.46%, the S&P 500 rose 0.72%, and the Nasdaq Composite Index advanced 0.72% by the close Monday. Peter Cardillo, chief market economist at Rockwell Global Capital, said traders were bargain-hunting after sharp losses at the end of July.
Last week, the Dow shed its gains for the year in its worst week since January, and the S&P 500 recorded its biggest weekly decline since mid-2012.