Asia Pacific Markets Fall along with China Service PMI

On this Tuesday (5 Sep) morning, all of Asia Pacific indices fell after a rally on Chinese property yesterday. Possibly, due to the latest announced Caixin Service PMI was lower than expected at 53.6, the number was fall from 54.1 in July down to 51.8 in August. This number implies a further slowdown in the Chinese economy.

Hong Kong’s HSI is the leader to the downside today with 1.5% loss, moving the index down to 18,560. Chinese Shanghai SSEC also fell by 0.6%, touching 3,150, along with Australian ASX 200 that fell by 0.6% as well, plunging the index to 7,270, anticipating the interest rate decision today from the Reserve Bank of Australia.

Meanwhile, South Korea’s GDP growth published at no change at all, standing 0.6% QoQ and 0.9% YoY, while inflation indicators like CPI published at 3.4% YoY, and 1% increased from last month at 2.3% YoY. However, an increase in price did not impact the stock market much has KOSPI lost only 0.3%, lowering the index down to 2,570.

On the other hand, the US market was closed for a labor holiday yesterday but the US Futures indices still made some small downward moves since last night through this morning, as S&P 500 and NASDAQ are moving closer to the important level of 4,500 and 15,500, respectively.

 The US dollar is still strong as the DXY moved up slightly to 104.2, weakening the JPY from $0.690 per 100 yen to $0.683 per 100 yen. Meanwhile, US bonds price dropped as 30-year fell below 120 and the 2-year note dropped from 101.9 to 101.8.

The strong USD also affected commodities as well as the WTI crude oil still traded around $86 per barrel and Brent also around $89 per barrel. In addition, precious metals like gold saw some drop from $1,970 to $1,960 per Troy ounce.