Asian Stock Market: Trades lower as weak Chinese data weighs

Asian stocks pare the previous session’s gain on Tuesday and trade lower.
US Dollar Index remains under pressure following Fed’s dovish stance on the interest rate.
Wall Street closed at the record high on Monday.

Rekha Chauhan Independent Analyst

Most of the Asia-pacific stocks trade lower on Tuesday diverting from Wall Street record high closing in the US session.

Investors turn cautious after dismal Chinese economic data, which raises concerns about China’s slowing economic growth and regulatory changes.

MSCI’s broadest index of Asia-pacific shares outside Japan slipped 0.25%.

The Shanghai Composite Index fell 0.28% on Tuesday following bleak economic data. China’s factory activity expanded at a slower pace in August as compared to the previous month. The Manufacturing Purchasing Manager’s Index (PMI) came at 50.1 in August as compared to 50.4 in July.

Japan’s Nikkei 225 gained was down 0.2% amid fears over the local COVID-19 situation. Japan’s Industrial output contracted in July as the resurgence of the coronavirus took a toll on the prospects of recovery in the world’s third-largest economy.

Hong Kong’s Hang Seng Index slipped 0.1%, South Korea’s Kospi traded down 0.15%.

The ASX 200 outperformed its peer as it edged up 0.17% higher.

The US Dollar Index (DXY) trades lower below 93.00 with 0.07% losses.

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

EUR/USD remains under pressure; looks at 1.1500 on firm US ISM

EUR/USD now accelerates its downtrend and trades in the low 1.1500s on the back of the marginal improvement in the US Dollar, all in the wake of solid US ISM Manufacturing data on Wednesday. The Greenback, in the meantime, remains far from a sustainable rebound in the current context of cooling geopolitical tensions.

Gold remains supported near $4,000

Gold adds to Friday’s pullback, although it remains well underpinned by the key $4,000 threshold per troy ounce on Monday. The US Dollar’s inconclusive price action seems enough to cap the yellow metal’s potential upside, although renewed hopes for a US-Iran peace deal and fading expectations of a Fed rate hike could limit the Greenback’s recovery.

Week ahead: US payrolls report and AI earnings to keep investors on edge

After the Fed decision, NFP report awaited for more rate hike clues. Employment also on the agenda in Canada and New Zealand. Chinese trade and Japanese wage data to be watched too. But Iran and AI headlines to remain in driver’s seat for risk sentiment.

The Bitcoin futures yield collapse: Once over 20%, now less than Treasury notes

Once a goldmine for carry traders, Bitcoin futures have flipped, consistently underperforming plain‑vanilla U.S. Treasuries every month since February. Carry trades consistently yielded 20% or more across regulated and unregulated crypto exchanges during the 2021 bull market. The strategy involved shorting Bitcoin futures while simultaneously buying a spot exchange-traded fund (ETF).

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.