Asian markets began the day on a downswing following fresh data from China indicating a weakening recovery in the world’s second-largest economy.
China’s manufacturing PMI declined to 48.2 in May, signalling a more pronounced contraction than anticipated. The growth in services dipped to its slowest rate in four months.
The MSCI’s Asia-Pacific shares index, excluding Japan, slipped by 1.2%, extending losses for the month to 2.5% as the optimism for a Chinese growth resurgence has evaporated. Hong Kong shares have plummeted by 20% from their January peak.
These disappointing numbers contribute to the overall negative market sentiment, with U.S. investors’ attention turning towards a vote on the country’s debt ceiling.
Yesterday, the FTSE 100 ended down by 1.4%, while the recent Lloyds business barometer revealed a drop in confidence for the first time in three months in May. European stocks are predicted to start on a low note today.
