Market update – China (FXI, quote) reported disappointing HSBC Flash Manufacturing PMI of 47.7 compared to estimates of 48.6. The previous reading was 48.2. China, the second largest economy headlines pushed the Asian markets broadly lower early in the Asian session.
Official data out of Japan added pressure to the NIKKIE with data indicating Japan’s trade balance has now fallen short for 12 consecutive months.
Japan’s exports did increase by 7.4% a defendant improvement but the exports did fall short of analysts’ expectations of 10.3%.
A Japan’ exports into China increased by 4.8% while exports to the U.S. increased by 14.6% it’s important to note exports to U.S. did fall short of May’s exports of 16.3%.
The NIKKEI closed lower by -0.32% to 14731.28 on the economic data.
Hong Kong’s (EWH, quote) Flash HSBC Purchasing Managers Index dropped to 47.7 for the month of July pushing the index to an 11 month low. Remember the HSBC is precedes the official government report by a week. A level of 50 is the line in sand that determines growth or contraction.
Hong Kong continues to struggle with unemployment with its latest reading of the employment index of 47.3 the lowest level since March of 2009.
Elsewhere in Asia – Singapore (EWS, quote) ticked higher by 0.65% and South Korea (EWY, quote) ticked higher by 0.42% recovering off their lows on the headlines.