Asia stocks came under pressure on Monday after HSBC released a disappointing final reading on China’s manufacturing activity in April, adding to concerns of a slowdown in the world’s second-largest economy.
Hong Kong’s Hang Seng Index tumbled 284.34 points, or 1.3%, to 21,976.33
Markets in Japan and Korea were closed for the Children’s Day holiday
Among the major movers, leading Chinese property developer Evergrande Real Estate Group fell 2.3% in Hong Kong, rival China Overseas Land & Investment declined 1.7%, online major Tencent Holdingshk:700 lost 0.6%, and telecom giant China Mobile dropped 0.4%
In Australia, losses in banks were offset by gains in mining shares. Westpac Banking Corp. gave up 1.2%, and Australia and New Zealand Banking Group pulled back 1.1%, while Newcreast Mining shot up 3.6% and Alumina tacked on 2.6%.
CHINA
Shanghai’s CSI 300 Composite returned from a long weekend to dip 2.19 points, or 0.1%, to 2,156.47
In Shanghai, property stocks suffered even more, as China Vanke Co. and Poly Real Estate Group tumbled 3.8% and 3.4% respectively.
Construction shares advanced, with China Railway Group popping up 3.6%, and China Railway Construction Corp. gaining 2.3%.
HSBC has released the final read of its monthly Chinese manufacturing gauge, with the result weak enough when compared to the preliminary data to pull down stock markets in China.
The HSBC Purchasing Managers’ Index (PMI) for April printed at 48.1, weaker than the initial or "flash" reading of 48.3, though still just above the 48.0 result in March. Either way, the result remained below the 50 level that divides expansion from contraction.
Last week, China’s official Purchasing Managers Index PMI reading showed a second successive pickup in April, rising to 50.4 from 50.3 in March, more or less in line with market expectations.
In other markets;
Taiwan’s Taiex Index inched forward 3.11 points to 8,870.43
The Singapore Straits Times Index subtracted 10.95 points, or 0.3%, to 3,241.60
New Zealand NZX 50 index fell 32.66 points, or 0.6%, to 5,200.25
Australia’s S&P/ASX 200 gained 4.17 points, or 0.1%, to 5,462.22
