Asian markets fell Tuesday, pressured by disappointing manufacturing data that fueled concerns about growth in China and its neighbouring economies.
In Japan, the Nikkei 225 index collapsed 724.79 points, or 3.8%, to 18,890.48.
In Hong Kong, the Hang Seng Index fell 485.15 points, or 2.2%, to 21,185.43,
The market fell nearly 5% in the morning before paring losses and trading sideways in the afternoon. Analysts say Beijing-backed funds have been buying shares in recent sessions, which has cushioned losses.
The region is extending a turbulent stretch, as fears over a slowdown in China have weighed on commodities and worries about a devalued Chinese yuan — interpreted by some as a sign of Beijing’s concern about slow growth — have triggered steep declines in stocks around the globe.
Reinforcing the idea that the regional economies are getting caught up in China’s economic malaise, manufacturing data from Taiwan also showed declines for August on Tuesday.
Still, the data add to concerns that a hike in U.S. interest rates later this year will stir up more volatility in global markets. Rates, at rock-bottom levels for years, have provided support for financial markets until recently.
Korea and Japan stocks fell, even though data showed their manufacturing activities have improved.
The Nikkei Japan PMI came in at 51.7 in August, up from 51.2 in July, while the Nikkei South Korea manufacturing PMI for August was up at 47.9.
In South Korea, the reading was a slight improvement from 47.6 in July, but marked a sixth straight month of a sub-50 reading. Exports in the country also posted their sharpest fall in six years in August as shipments to China—Seoul’s biggest export destination—slumped.
The South Korean won strengthened by 0.5% to 1,172.80 against the U.S. dollar.
CHINA
In China, the CSI 300 docked 4.45 points, or 0.1%, to 3,362.08
Earlier Tuesday, China’s official manufacturing purchasing managers index for August fell to 49.7, from 50.0 in July, marking its lowest level since August 2012.
A number below 50.0 implies a contraction of the industry.
Separately, the Caixin China manufacturing purchasing managers index, a gauge of nationwide manufacturing activity, fell to a final reading of 47.3 in August from 47.8 in July, the lowest point in more than six years
Elsewhere, the offshore Chinese yuan traded as strong as 6.4080 against the U.S. dollar, following a move by China’s central bank to curb growing depreciation pressure.
Starting October 15, banks buying and selling what are called currency forwards for clients will be asked to set aside reserves, according to a notice from the central bank reviewed by The Wall Street Journal.
The offshore yuan was stronger by 0.4% against the U.S. dollar compared with its late-day trade yesterday.
In other markets
In Korea, the Kospi index slid 27.26 points, or 1.4%, to 1,914.23
In Singapore, the Straits Times Index dropped 38.67 points, or 1.3%, to 2,882.77
In Taiwan, the Taiex index dropped 157.36 points, or 1.9%, to 8,017.56
The NZX 50 moved lower 1.26 points to 5,654.99
The ASX 200 Index shed 110.57 points, or 2.1%, to 5,096.41
