Not Much Expected from Asian Equities

Asian stocks are likely to open lower on Monday, following a weak ending for U.S. stocks Friday.  The Dow Jones industrial average ended about 115 points lower after falling more than 150 points during the session, although it still posted a 0.95 percent gain for May. After rallying for the week, the U.S. dollar and Treasuries traded flat on Friday.

Stock futures for Asia’s main indices are all pointing downward. Australia’s ASX 200 is seen falling 0.30 percent at the open, Japan’s Nikkei by 0.49 percent and Hong Kong’s Hang Seng by 0.28 percent.

For Asian investors, the key events for the day will be China economic data. The government will be releasing its official purchasing managers’ index at 09:00 SIN/HK time. China’s May factory activity is forecast at 50.2, a nudge higher than a tick up from April’s 50.1, but above the 50-mark that demarcates expansion in the manufacturing sector from contraction, according to a Reuters poll of economists.


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