(Bloomberg) — Stocks in Asia fell after disappointing data from China’s services sector added to concerns about the country’s economic woes. The dollar rose slightly.
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Hong Kong stocks led the losses, with the benchmark index down more than 1%, led by real estate firms. An industry survey of China’s services sector showed activity grew at its slowest pace in August this year, a sign that the economic recovery is losing momentum. The MSCI Asia Pacific Index is heading for its first decline in seven days.
“It’s the typical post-party reality check that tempers China’s rally today as the services PMI fell well short of expectations, pointing to further economic downside,” said Hebe Chen, analyst at IG Markets Ltd. in Melbourne.
In other positive news, Country Garden Holdings Co. is proposing to extend principal payments on eight-yuan bonds, according to holders who said they were briefed by company advisers. The developer also told creditors that it had paid out the coupons on the two-dollar bonds within the grace periods.
South Korean stocks also fell after inflation accelerated faster than economists forecast in August due to rising energy costs. This suggests that the central bank is keeping the door open for further tightening of its monetary policy.
Stocks also fell in Australia, where the central bank will keep interest rates unchanged for a third month on Tuesday.
The dollar rose against all other Group of 10 currencies, while Treasury bonds fell slightly as cash trading resumed on Monday following a U.S. holiday. Australia’s bonds also fell ahead of the central bank decision.
The offshore yuan weakened after the PMI data.
Oil traded near its highest level since November after rising amid OPEC+ supply cuts that strained the market. Gold fell.
The story goes on
Goldman Sachs Group Inc. lowered its estimate of the probability of a U.S. recession. “Continued positive inflation and labor market news led us to further reduce our estimated 12-month U.S. recession probability to 15%, a decline of 5 percentage points from our previous estimate,” Jan Hatzius, the firm’s chief economist, wrote. in a note.
Important events this week:
Tariff decision for Australia, Tuesday
Eurozone S&P Global Eurozone Services PMI, PPI, Tuesday
US factory orders, Tuesday
ECB President Christine Lagarde will lead the panel focusing on central banks and international sanctions at the ECB legal conference on Tuesday
Australia’s GDP, Wednesday
Eurozone retail sales, Wednesday
Factory orders for Germany, Wednesday
US trading, Wednesday
Canada interest rate decision, Wednesday
Andrew Bailey, governor of the Bank of England, testifies before the Treasury Select Committee of the British Parliament on Wednesday
The Federal Reserve will release an economic survey in the Beige Book on Wednesday
Boston Fed President Susan Collins addresses the New England Council on the economy on Wednesday
China trade, foreign exchange reserves, Thursday
Eurozone GDP, Thursday
Initial jobless claims in the US, Thursday
Bank of Canada Governor Tiff Macklem speaks about the Economic Progress Report on Thursday
New York Fed President John Williams will participate in a moderated discussion at the Bloomberg Market Forum on Thursday
Atlanta Fed President Raphael Bostic speaks about the economic outlook at Broward College on Thursday
Japanese GDP, Friday
France’s industrial production, Friday
Germany CPI, Friday
Some of the key moves in the markets:
Shares
S&P 500 futures fell 0.2% at 12:27 p.m. Tokyo time
Nasdaq 100 futures were little changed
Japan’s Topix fell 0.4%
Australia’s S&P/ASX 200 fell 0.5%
Hong Kong’s Hang Seng fell 1.5%
The Shanghai Composite fell 0.6%
Euro Stoxx 50 futures fell 0.1%
Currencies
The Bloomberg Dollar Spot Index rose 0.2%
The euro was little changed at $1.0787
The Japanese yen fell 0.2% to 146.74 per dollar
The offshore yuan fell 0.2% to 7.2925 per dollar
The Australian dollar fell 0.5% to $0.6426
Cryptocurrencies
Bitcoin fell 0.8% to $25,609.71
Ether fell 1% to $1,611.81
Tie up
The 10-year Treasury yield rose three basis points to 4.21%
Japan’s 10-year yield rose 1.5 basis points to 0.655%
Australia’s 10-year yield rose five basis points to 4.14%
raw materials
West Texas Intermediate crude rose 0.5% to $85.94 a barrel
Spot gold fell 0.3% to $1,937.15 an ounce
This story was produced with support from Bloomberg Automation.
– With assistance from Jason Scott and Georgina McKay.
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