Asian Stock Market: Turns volatile on downbeat PMI data, oil rallies above $90.00
|- Asian indices have declined on downbeat performance from the Asia-Pacific region on the PMI front.
- Advancing oil prices after OPEC signaled production cuts had dampened the market mood.
- Focus has shifted to US PMI data now which will provide more clarity to investors for further direction.
Markets in the Asian domain are displaying a cautious approach after the release of the downbeat Purchasing Managers Index (PMI) data in the Asia-Pacific region. PMI numbers for Japan and Australia are out and have remained downbeat and now investors are awaiting the release of the US PMI data.
At the press time, Japan’s Nikkei225 tumbled 1.19%, China A50 eased 0.37%, and Hong Kong surrendered 0.64%. Indian indices opened in the negative territory but have recovered firmly and have turned positive.
Japan’s Jibun Bank Manufacturing PMI has landed at 51, lower than the expectations and the prior release of 51.8 and 52.1, respectively. Also, Services PMI remained vulnerable at 49.2 from the consensus of 50.7 and the former figure of 50.3. In the Asia-Pacific region, Australia’s Manufacturing PMI slipped sharply to 54.5 from the expectations of 57.3 and the prior release of 55.7. While the Services PMI data landed lower to 49.6 against the estimates of 54 and the former release of 50.9.
The downbeat performances by the weighing Asia-Pacific nations on the PMI front have dampened the sentiments of the market participants.
Apart from that, a firmer recovery in oil prices has also dampened the market mood. Oil prices have rebounded sharply after OPEC signaled production cuts to offset the recent decline. It is worth noting that the oil prices fell around 33% from their yearly high of $127.00, recorded in March.
In the future, investors will focus on the PMI numbers from the mighty US. The S&P Global Manufacturing PMI is expected to land at 51.5, lower than the prior print of 52.2. However, the Services PMI could improve meaningfully to 49.1 vs. the former figure of 47.3.
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