It seems like Asian shares have been behaving from all directions lately. The region’s bourses opened another week mixed as Chinese factory activity came slower than expected.
Japan’s Nikkei 225 dropped 0.66% despite the country’s factory activity recording a 2.5% improvement in April.
The world’s third-largest economy’s industrial production expanded by 2.5% during the month. Such a result extends the 1.7% hike recorded in March.
Economists believe that the state of emergency lifting in Tokyo and other important prefectures helped propel the surge. However, the capital city was placed back into the curb earlier in the month as the number of daily infections unprecedentedly surged.
Japanese Prime Minister Yoshihide Suga will decide on whether to extend restrictions later in the day.
In Australia, the ASX 200 shaved off 0.14%. Investors’ focus is currently on the central bank’s latest policy decision due for release on Tuesday.
Victoria’s lockdown also continues to sour market sentiment down as policymakers noted that the next days would become critical for citizens affected. The daily tally in the state surged above 50. It incited a greater uncertainty on the future of COVID in the Antipodean country.
Traders are also focusing on the Aussie copper juggernaut, 29Metals Ltd., as it makes its long-awaited initial public offering.
The firm plans to raise $471 million during its public debut. Many investors are preparing to hop on the bandwagon, especially as copper turned out to be a consistent performer in the commodity market.
The metal’s ubiquitous presence in industrial activities among the world’s biggest economies helped it ascend to consecutive multi-year highs since 2020.
Chinese Stocks Fail to Dodge the Bullet
Mainland Chinese stocks fail to dodge sour sentiment brought by the lower than anticipated PMI for May.
The indicator, which is an important measure of the overall performance of the manufacturing sector, bottomed at 51.0 this month. This has raised concerns on whether China has finally reached an economic recovery peak in the past months and makes corrections next.
The Shanghai Composite Index fell by 0.23%. Meanwhile, the Shenzhen Component managed to bring in a 0.29% jump during the same session.
In Hong Kong, the Hang Seng Index fell by 0.29% as investors’ optimism on JD Logistics starts to wear off.
Analysts noted that investors are currently making an unprecedented slowdown with their bets as overall uncertainty starts to take hold of the market again.