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Asian markets end lower as China’s service sector hits a low

05 Aug 2014 Evaluate

Asian equity indices ended mostly in the red on Tuesday as investors remained on sidelines ahead of the U.S. jobs report for May. Sentiments also remained down-beat after a HSBC report showed the performance of China’s service sector fell to a record low in July. The Chinese services Purchasing Managers’ Index (PMI) in July slipped to 50.0, the dividing line between expansion and contraction, from 53.1 in June. The weakness in the headline number likely reflects the impact of the ongoing property slowdown in many cities, as property-related activity, such as agencies and residential services, see less business.

Ongoing concerns about the situation in Ukraine and the Middle East as well as fears over the health of the European banking sector following the bailout of Portugal's Banco Espirito Santo also kept investors nervous. Bucking the trend, Hong Kong’s benchmarks edged higher as the country’s private sector activity expanded in July as output improved. The HSBC PMI for the private sector rose marginally to 50.4, its highest reading in five months, from 50.1 in June.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2219.95

-3.39

-0.15

Hang Seng

24648.26

48.18

0.20

Jakarta Composite

5109.09

-10.16

-0.20

KLSE Composite

1876.69

0.89

0.05

Nikkei 225

15320.31

-154.19

-1.00

Straits Times

 3327.67

9.27

0.28

KOSPI Composite

2066.26

-14.16

-0.68

Taiwan Weighted

9141.44

-188.75

-2.02

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