Stock market gains were capped on Thursday in much of Asia in the wake of China’s downbeat factory activity data, but shares in Shanghai focused on the potential positives from the weak reading and rallied. The dollar held on to broad gains after minutes from the Federal Reserve’s April meeting contained no major surprises.
Spreadbetters forecast a slightly lower open for Britain’s FTSE .FTSE, Germany’s DAX .GDAXI and France’s CAC .FCHI, in light of subdued Asian stocks and a lack of clear leads from Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS stood little changed. South Korean, Hong Kong and Malaysian shares slipped, while Australian stocks surged on bargain hunting. Tokyo’s Nikkei .N225 initially set a new 15-year high but pared much of its gains on profit-taking.
The Shanghai Composite Index .SSEC was up 1.2 percent after the flash HSBC manufacturing PMI showed Chinese factory activity contracting for the third month in May. Weak Chinese readings feed concerns about cooling demand from the global powerhouse, but at the same time they often shore up Chinese stocks by fuelling expectations that policymakers will roll out extra monetary stimulus.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at email@example.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.