Asian Markets Slip After Wall Street Losses; China PMI Falls More Than Expected

Asian equities were mostly lower on Tuesday

Investing.com – Asian equities were mostly lower on Tuesday after Wall Street posted losses overnight. Meanwhile, China’s official manufacturing Purchasing Manager’s Index (PMI) fell more than expected in July.

The Nasdaq Composite Index closed 1.4% lower while the FANG cohort of tech megacaps tumbled almost 3%. Netflix (NASDAQ:NFLX) plunged more than 5% on a report over the weekend that Walmart (NYSE:WMT) is planning to launch a rival video subscription service. Apple (NASDAQ:AAPL) is due to report earnings later today.

In Asia, the Shanghai Composite and the SZSE Component opened 0.3% and 0.2% lower respectively by 9:40PM ET (01:40 GMT). China’s PMI took centre stage after official data showed the country’s factory activity was slightly lower than expected in July. The official manufacturing Purchasing Manager’s Index (PMI) came in at 51.2, while analysts expected PMI to fall to 51.3 in July from 51.5 in June. The private manufacturing PMI, which focuses on small and medium-sized enterprises, is set to be released on Wednesday. Hong Kong’s Hang Seng Index traded 0.6% lower in morning trade.

Elsewhere, the Nikkei 225 slipped 0.3%. All eyes are on the outcome of the Bank of Japan’s two-day policy meeting due later in the day. Analysts reportedly suspected officials may adjust policy stimulus. The yen is expected to be in focus as any winding back of stimulus could push the Japanese currency higher and undermine efforts to boost domestic inflation that is well below the central bank’s 2% target.

South Korea’s KOSPI edged 0.1% lower as index heavyweight Samsung (KS:005930) Electronics’ earnings fell short of markets’ estimates. The company reported on Tuesday that its net income rose to 11 trillion won in the three months ended June. That compares with the general consensus of 11.6 trillion won.

Down under, the S&P/ASX 200 climbed 0.04% as gains in financials and telecommunications were largely offset by declines in consumer and information technology stocks.

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