Most of the Asian equity benchmarks are trading lower in the early deals on Tuesday, tracking the negative lead overnight from Wall Street. In addition, data showing that activity in China's vast manufacturing sector has contracted added to concerns over the health of the world's second-largest economy. China's official manufacturing purchasing managers' index (PMI) edged down to 49.7 in August from 50 in July, just below the 50-mark that separates expansion from contraction. The final Caixin/Markit manufacturing purchasing managers' index (PMI) came in at 47.3 in August, above a preliminary reading of 47.1 but down from 47.8 in July. The Japanese market declined as weak corporate activity soured sentiment, while data from China suggested its economy was losing further momentum. Among the other Asian markets, Shanghai, Taiwan, South Korea, Indonesia, Singapore and Hong Kong are also weak. Bucking the trend, Malaysia is in positive territory.
Nikkei 225 declined 302.59 points or 1.60% to 18,587.89, Hang Seng decreased 101.44 points or 0.47% to 21,569.14, Shanghai Composite crumbled 33.96 points or 1.06% to 3,172.03, KOSPI Index dropped 17.00 points or 0.88% to 1,924.49, Straits Times contracted 8.05 points or 0.28% to 2,913.39, Taiwan Weighted slipped 120.18 points or 1.47 % to 8,054.74 and Jakarta Composite was down by 58.41 points or 1.30% to 4,451.20.
On the flip side, FTSE Bursa Malaysia KLCI was up by 11.30 points or 0.70% to 1,624.04.
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