Data shows that factory activity growth in China slowed in August


SINGAPORE – Asia Pacific stocks were mixed on Tuesday as data showed a slowdown in growth in Chinese factory activity in August.

In mainland China, the Shanghai composite rose 0.45% to close at 3,543.94 while the Shenzhen component fell 0.659% for the day to 14,328.38.

China’s factory activity grew more slowly in August compared to the previous month, data released on Tuesday showed. The official purchasing managers’ index for manufacturing was 50.1 in August compared to 50.4 in July.

Meanwhile, the official August non-manufacturing PMI was 47.5 – the lowest since the peak of the pandemic in early 2020.

PMI values ‚Äč‚Äčabove 50 indicate expansion, while those below this value indicate contraction. The PMI readings are sequential and represent a monthly expansion or contraction.

“I think these numbers confirm what a lot of other data has been suggesting for some time that the Chinese economy is slowing,” Jonathan Pain, author of the Pain Report, told CNBC’s Street Signs Asia on Tuesday.

“China was first in this pandemic and first of it, and I think now we are starting to see a much wider kind of macroeconomic slowdown,” Pain said.

Tencent, Netease shares fall

Hong Kong-listed Tencent and Netease stocks were mixed on regulatory concerns. In Tuesday afternoon trading, Tencent bounced back from previous losses and rose 1.93% while Netease fell 3.04%.

It came after new rules released Monday by China’s National Press and Publication Administration showed plans to limit the time people under the age of 18 spend playing video games to just three hours a week.

Hong Kong’s broader Hang Seng index rose 0.85% on its last hour of trading.

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In Japan, the Nikkei 225 rose 1.08% to close at 28,089.54 while the Topix index rose 0.54% to end the trading day at 1,960.70. South Korea’s Kospi rose 1.75% to close at 3,199.27.

Elsewhere, the S & P / ASX 200 climbed 0.41% higher in Australia.

MSCI’s broadest index for Asia Pacific stocks outside of Japan rose 1.09%.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.498 after falling above 93.0 last week.

The Japanese yen was trading at 109.81 per dollar, weaker than yesterday against the greenback below 109.8. The Australian dollar was trading at $ 0.7337 and largely held gains after rising below $ 0.72 last week.

Oil prices were lower on the afternoon of Asian trading hours, with international benchmark Brent crude futures falling 0.11% to $ 73.33 a barrel. US crude oil futures declined 0.16% to $ 69.10 a barrel.

– CNBC’s Arjun Kharpal and Lauren Feiner contributed to this report.