Asian Stocks Down After Wave of Dismal Economic Data

This post was originally published on this site
© Reuters. © Reuters.

By Gina Lee – Asian stocks retreated on Thursday morning with investors digesting an onslaught of dismal economic data.

China’s  was down 0.15% by 10:44 PM ET (3:44 AM GMT) while the  also slid 0.16% with the country’s Caixin/Markit services Purchasing Managers’ Index for April came in at 44.4.

China’s services sector slid for the third straight month and layoffs hit a record high with the country struggling to kickstart its economy in the aftermath of COVID-19.

Although the reading was higher than March’s reading of 43, it was still under the 50-level indicating growth.

Hong Kong’s  dropped 0.40% after Hong Kong-listed Budweiser APAC posted a net loss of $41 million in the first quarter.

Japan’s  was down 0.10% as it reopened after a holiday. Meanwhile, neighboring South Korea’s  gained 0.05%.

Down Under, the  slid 0.41%.

Meanwhile, the U.S. said overnight that U.S. companies cut a record 20.2 million jobs in April.

U.S. unemployment data, expected later in the day, predicted another 3 million according to forecasts prepared by

Investors remained cautious as the data indicated that the global economic recovery from the COVID-19 virus continued to be hampered.

“We remain concerned about the potential for the pandemic to have lasting effects on growth,” Ron Temple, co-head of multi-asset and head of U.S. equity at Lazard (NYSE:) Asset Management, told Bloomberg.

“Countries and companies are likely to exit the crisis with significantly higher debt, curtailing their ability to invest and innovate.” 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment