Asia Pacific stock market opened lower on Tuesday. Hong Kong’s Hang Seng index rose 252 points despite worries about China’s slowing economic growth. Japan’s Nikkei 225 index edged 1.19% higher as the country reported a decline in its unemployment rate. Australia’s ASX 200 index was also up. Mainland Chinese stocks, Shanghai Composite and Shenzhen Component were in the red.
China’s Economic Concerns
According to data released by the China Federation of Logistics and Purchasing, China Manufacturing Purchasing Managers Index (PMI) was 50.1% in August. Despite a decline, the PMI index remained above the line ups and downs. Overall economic recovery trend continued, albeit the momentum is weakening further.
The order index has continued to decline, as they are all below the line of prosperity and decline. Most businesses reported insufficient demand, thus indicating that demand constraints have been strengthened further.
China’s non-manufacturing business activity index for August 2021 came in at 47.5%, a 5.8% decline from the previous month. The new order index declined 7.5% from the previous month to 42.2%. Data released by the Service Industry Survey Center of the National Bureau of Statistics showed that the supply and demand in the non-manufacturing index dropped significantly.
Consumer-related services were significantly impacted by the pandemic, hence was the main drag in the non-manufacturing growth in August. In general, the pandemic had a great impact on the service industry in August.
Hang Seng Movers
Geely Automobile was among the best performers in the Hang Seng index. The automobile company gained more than 3.70% after Lotus Technology signed an investment pact with Nio Inc. Geely owns 51% of the company.
Haidilao International Holding Limited was up 4.25%. Haidilao is the largest hotpot chain in China. The restaurant company has opened more outlets in Asia.
Meituan gained more than 4.82% after the release of its results for the second quarter. China’s largest food delivery platform delivered sales worth $6.8 billion in the June quarter. The company posted a third straight quarterly net loss of 3.4 billion yuan.
Ping An Insurance led the laggards in the Hang Seng index. The Chinese insurance company was down 5.18% amid probes by China’s banking and insurance sector regulator.
Longfor Properties was also in the red on Tuesday. The residential property managers company slipped 3.85% in its stock earnings.