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Asian shares movement as China information raises expansion concerns

TOKYO (Reuters) – Asian shares got off to a downbeat start on Monday, after weekend Chinese information lifted concerns about expansion in a world’s second-largest economy.

China’s bureau zone suddenly shrank for a initial time in scarcely 2-1/2 years final month and firms see some-more dejection ahead, according to a consult expelled on Sunday. The central Purchasing Managers’ Index (PMI) fell to 49.8 in January, a low final seen in Sep 2012 and next a 50-point turn that separates expansion from contraction on a monthly basis.

The Chinese news came on a heels of a fourth-quarter U.S. sum domestic product news on Friday that showed expansion slowed neatly as diseased business spending and a wider trade necessity equivalent a swell in consumer spending.

Also on Sunday, Greece’s new revolutionary supervision began a expostulate to convince a doubtful Europe to accept a new debt agreement while it starts to hurl behind on purgation measures imposed underneath a existent bailout agreement. It seeks to finish a existent arrangement with a European Union, a European Central Bank and International Monetary Fund “troika” when a assist deadline expires on Feb. 28.

“The multiple of softer U.S. data, a unsatisfactory China PMI and a fact that Greece is now really most on a collision march with a rest of Europe over a bill should continue to import on risk view in Asia,” Westpac Global Strategy Group pronounced in a note to clients.

MSCI’s broadest index of Asia-Pacific shares outward Japan .MIAPJ0000PUS was down about 0.1 percent, while Japan’s Nikkei batch normal .N225 forsaken 0.7 percent in early trade.

On Wall Street on Friday, vital U.S. batch indexes posted waste for a week and month, driven in partial by regard about diseased abroad demand. The SP 500 was down 3.1 percent for January, a biggest monthly slip in a year.

The risk-averse mood weighed on a dollar, that strew about 0.3 percent to 117.22 yen, not distant from a two-week low of 116.64 yen overwhelmed on Friday, as investors elite a long-lived safe-haven interest of a Japanese currency. That also helped pull a euro down about 0.1 percent to 132.45.

Sagging U.S. Treasury yields also undermined a greenback’s appeal, as investors fled to a reserve of U.S. fixed-income assets. The benchmark 10-year produce was during 1.652 percent in Asian trading, down from a U.S. tighten of 1.68 percent on Friday, when it fell as low as 1.646 percent, a turn not seen given May 2013.

Oil prices skidded after a downbeat mercantile information lifted regard about demand, giving behind some of Friday’s after a record weekly dump in U.S. oil drilling triggered a short-covering convene on a final trade day of a month. Brent LCOc1 strew 1.6 percent to $52.13 a barrel, while U.S. wanton CLc1 slipped 1.9 percent to $47.32.

(Editing by Eric Meijer)

Article source: http://www.reuters.com/article/2015/02/02/us-markets-global-idUSKBN0L601720150202

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