Asian markets weakened on Friday, following a negative lead from the U.S., while Hong Kong led the region lower as data pointed to a slowing expansion in China’s service sector.
Markets in Japan had the day off.
In foreign-exchange markets, the U.S. dollar lost 0.4% overnight against the Japanese yen, bucking a day of broad dollar strength, and moving lower on Friday.
The dollar was trading at ¥104.44, compared with ¥104.80 late Thursday in New York.
Hong Kong’s Hang Seng Index collapsed 522.37 points, or 2.2%, to 22,817.28, as macroeconomic news came in that proved less than favourable.
CHINA
Shanghai’s CSI 300 index deducted 31.20 points, or 1.3%, to 2,290.78.
Activity in the Chinese service sector slowed in December, according to China’s official non-manufacturing Purchasing Managers’ Index.
The statement released on Friday gave a reading of 54.6 for last month, compared with 56 in November — a marked deceleration, though the measure was still above the 50 mark that indicates an expansion. The non-manufacturing PMI tracks industries including retail, real estate and construction.
The report came just a day after regional sentiment took a hit from two separate reports which pointed to deceleration in China’s manufacturing sector, raising concerns that Asia’s largest economy might be losing momentum.
In other markets;
Korea’s Kospi index lost 21.05, or 1.1%, to 1,946.14
Taiwan’s Taiex Index dipped 66 points, or 0.8%, to 8,546.54
The Singapore Straits Times Index dipped 43.18 points, or 1.4%, to 3,131.47
In New Zealand, the NZX 50 returned from holiday to pick up 32.03 points, or 0.7%, to 4,769.04
In Australia, the S&P/ASX 200 shed 17.81 points, or 0.3%, to 5,350.10
