Asian stock markets traded lower on Monday as slowing manufacturing growth weighed on China, while a stronger yen hit Japanese stocks.
In Tokyo, the Nikkei 225 index plummeted 250.20 points, or 1.6%, to 15,152.91
Hong Kong’s Hang Seng Index fell 131.30 points, or 0.6%, to 23,114.66
Away from China, the upcoming Fed policy meeting continued to weigh on sentiment in Asia, with some expecting the central bank to start cutting its stimulus measures at its policy meeting that concludes on Wednesday.
Speculation over the Fed’s monetary-policy plans has been a major focus for global markets ever since the summer, when fears that the central bank’s easy-money plans would begin to roll back resulted in a series of selloffs in Asia.
As a result, most regional markets drifted lower on Monday
The caution was also evident in a stronger yen, with the U.S. dollar trading at ¥102.74 on Monday, compared with ¥103.23 late Friday in New York.
The firmer yen weighed on Japanese shares, overshadowing a mixed outcome from the Bank of Japan’s quarterly tankan survey.
Although the survey showed that the country’s major manufacturers are at their most upbeat in six years, it indicated that big companies lowered their investment plans for the current financial year.
Shares in Softbank Corp. — one of the largest constituents on the Nikkei Average — fell 3.2% after The Wall Street Journal reported that the firm’s Sprint unit is considering a takeover considering a takeover of its smaller rival T-Mobile US, with a bid potentially coming in the first half of 2014.
CHINA
Shanghai’s CSI 300 index doffed 38.72 points, or 1.6%, to 2,367.92
China was a focus on Monday, with Shanghai and Hong Kong reacting to economic news, as HSBC’s preliminary December manufacturing data for China fell to 50.5 in December, compared with a final reading of 50.8 in November. A reading above the 50 mark indicates an expansion in factory activity.
Earlier in the year, preliminary manufacturing data was a major driver of regional markets, as it fluctuated between growth and contraction. The latest reading was a three-month low, pointing to slowing growth in the country’s all-important manufacturing sector.
In other markets;
Korea’s Kospi Index moved back 1.76 points, or 0.1%, to 1,961.15
Taiwan’s Taiex Index lost 63.07 points, or 0.8%, to 8,313.87
The Singapore Straits Times Index subtracted 12.25 points, or 0.4%, to 3,053.77
In New Zealand, the NZX 50 gained 18.05 points, or 0.4%, to 4,735.61
In Australia, the S&P/ASX 200 subtracted 8.79 points, or 0.2%, to 5,089.63
