The Asian markets closed in red on Wednesday, as weak Chinese manufacturing data increase fears about waning global growth. Japan stock exchange was closed on account of ‘Autumn Equinox’ holiday. A preliminary measure of Chinese factory output in September was the lowest since the financial crisis, adding to a parade of weak data that is increasingly eroding hopes that China’s slowdown would stabilize in the second half. The preliminary Caixin China Manufacturing Purchasing Managers’ Index, a gauge of nationwide manufacturing activity, fell to 47.0 in September, compared with a final reading of 47.3 in August. The reading was the lowest since March 2009, when China was grappling with the global financial crisis. China has announced a flurry of infrastructure plans in recent months, browbeaten local officials to spend their full budgets and tried to ease funding constraints for highway, rail and other projects. The infrastructure sub-index of fixed-asset investment data in August grew 19.9% year-over-year in August compared with 16.4% in July. Chinese President Xi Jinping pledged not to push the value of the yuan currency lower just to strengthen Chinese exports.
Indonesia’s House of Representatives’ Commission XI, which oversees the nation’s finance and banking sectors, has agreed to revise down its economic growth and rupiah target for next year, conceding to weaker prospects of global growth. The Commission cut growth target to 5.3% from the initial aim of 5.5% in the 2016 state budget draft, on the back of the unwelcoming global economy, slower demands for export and low commodity prices. Taiwanese Industrial Production fell to a seasonally adjusted annual rate of -5.46%, from -2.99% in the preceding month.
Asian Indices Last Trade Change in Points Change in % Shanghai Composite 3,115.89 -69.73 -2.19 Hang Seng 21,302.91 -493.67 -2.26 Jakarta Composite 4,244.43 -99.62 -2.29 KLSE Composite 1,613.17 -22.20 -1.36 Nikkei 225 - - - Straits Times 2,845.74 -22.73 -0.79 KOSPI Composite 1,944.64 -37.42 -1.89 Taiwan Weighted 8,193.42 -172.50 -2.06
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