Asia-Pacific Markets Mixed as Investors Analyze China’s Business Activity Numbers

The Asia-Pacific markets were mixed on Monday as investors analyzed China’s business activity numbers released over the weekend. China released its official purchasing managers’ index data for August. The manufacturing PMI fell to a six-month low of 49.1, a faster contraction compared to the 49.4 seen in July. The figure also missed the median forecast of 49.5 from economists polled by Reuters, with the index marking its fourth straight month in contraction territory. On the other hand, China’s non-manufacturing PMI climbed to 50.3, up from July’s 50.2.

Among the economic data coming out from major markets in the region are inflation numbers from South Korea, Australia’s second-quarter GDP data, as well as data on pay and household spending from Japan later this week.

Hong Kong Hang Seng index tumbled 1.21% on its open, while the CSI300 shed 0.42%, dragged down by real estate stocks. Japan’s Nikkei 225 was up 0.35%, while the broad-based Topix was 0.11% higher. South Korea’s Kospi was marginally up, while the small-cap Kosdaq was 0.30% lower. Australia’s S&P/ASX 200 slipped 0.27%.

In the U.S. on Friday, the Dow Jones Industrial Average posted a fresh record high, with the blue-chip index jumping 0.55% to close at 41,563.08. The S&P 500 advanced 1.01%, while the tech-heavy Nasdaq Composite gained 1.13%. Traders also assessed key inflation data watched closely by the Federal Reserve. The personal consumption expenditures price index rose 0.2% on a monthly basis in July and 2.5% from a year ago, in line with estimates from economists polled by Dow Jones. Excluding food and energy, it also rose 0.2% from the prior month.

Overall, the Asia-Pacific markets showed a mixed reaction to China’s business activity numbers, with different indices experiencing both gains and losses. With a slew of economic data set to be released later in the week, investors are keeping a close eye on market movements and indicators to gauge the overall economic health of the region. While U.S. markets continue to reach record highs, the global economic landscape remains uncertain as countries navigate through the ongoing impacts of the pandemic.