Asian Market Down as China’s Official PMI Falls to 50.5 in January

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Asian Market Down as China’s Official PMI Falls to 50.5 in January
Asian Market Down as China’s Official PMI Falls to 50.5 in January

Asian Market Down as China’s Official PMI Falls to 50.5 in January

As China’s official Purchasing Managers’ Index (PMI) fell to 50.5 in January from December’s 51, its impact was seen in the regional market. China is not only seeing low exports but massive unemployment. According to the experts this has led to worries of an economic slowdown. In today’s trading South Korean shares began at a low after trading was suspended on Thursday and Friday.

Today’s trading saw the South Korean benchmark Kospi index hover near a fresh five-month lows despite better data from factory activity that hit an eight-month high in January. The fall in the Kospi even after the HSBC/Market purchasing managers’ index gaining and housing prices rising for a fifth straight month, surprised investors.

Major Losers and Gainers today in South Korean and Japanese Stock Market
Major loser in today’s trade was LG Electronics as it declined 3.5 percent. A similar trend was seen in the stocks of LG Display and Posco which fell over 1 percent each. On the other hand, Japan’s benchmark index extended Friday’s losses when they closed at its lowest level in nearly three months.

A lot of outflow was seen in the Nikkei which was down over 10 percent since hitting a six-year peak of 16,320 points on December 30. According to market observers this is a correction of the market after the astounding boom a month ago. As the yen hit a session high of 101.89, near last Monday’s eight-week high of 101.77, exports is affected to a great extent.

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Yen hit another high after reaching 137.38 against the euro. It is the highest value in two months against the euro and expected to have an impact on exports. The major loser in the Japanese stock market was SoftBank which tumbled over 6 percent today. Some other banks that were seen facing trouble were Sumitomo Mitsui and Mizuho, the two traded nearly 4 percent lower.

Thailand Stocks Slightly Up

Thailand stock market on the other hand was an exception today wherein stocks fared comparatively better as shares rallied over 1 percent to hit a one-week high. The country seems to have overcome the protest and unrest that hit it the last month. However, there was no respite for Indian shares which fell 0.6 percent despite better PMI which is hitting a near one-year high.

There is no trading today as markets in China, Hong Kong, Malaysia, Taiwan and Vietnam are closed amid the Chinese New Year holidays.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com