HONG KONG - Asian markets fell Thursday after the previous day’s impressive gains, while more weak manufacturing figures out of China added to concerns about the economic giant.
Adding to downbeat sentiment in Japan were figures showing the economy recorded its second straight monthly trade deficit in August owing to slipping exports caused by a worldwide slowdown.
Shanghai led the losses, tumbling 2.08 percent, or 42.99 points, to 2,024.84, its lowest since February 2009, at the height of the global financial crisis. Hong Kong ended 1.20 percent lower, shedding 250.99 points to 20,590.92. Tokyo fell 1.57 percent, or 145.23 points, at 9,086.98, as the yen regained the ground it lost when the Bank of Japan announced a new round of easing on Wednesday.
Seoul lost 0.87 percent, or 17.55 points, at 1,990.33 while Sydney was 0.48 percent, or 21.1 points, lower at 4,397.2. Global indices climbed on Wednesday, with Tokyo and Sydney hitting four-month highs, after the Japanese central bank said it would extend an asset-purchase scheme as it tries to jumpstart the domestic economy. The move followed similar bond-buying plans by the US Federal Reserve and the European Central Bank, which helped send equities soaring. However, most of those advances were wiped out on Thursday after HSBC’s preliminary Purchasing Managers Index (PMI) said Chinese manufacturing activity contracted for an 11th straight month in September.
The survey adds to long-running worries about the world’s number-two economy, which has seen its key export sector pummelled by shrinking demand in the crucial European and US markets.
HSBC said the PMI for this month hit 47.8, a mild improvement from a final reading of 47.6 in August. However, a reading below 50 indicates contraction, while anything above 50 shows growth. The final results will be released on September 29. “The HSBC PMI data didn’t offer us a surprise to the upside, so the market will continue to fall,” said Soochow Securities analyst Zhu Kaikai.
The figures from China are closely watched as the country is a key driver of growth for much of the global economy.
In forex markets the dollar — which briefly topped 79.00 yen after the BoJ announcement before easing to 78.36 yen by the end of New York trade — bought 78.21 yen late Thursday in Asia.