Asian Midday Marketwatch: 01.09.2021
Asia Pacific stocks mostly higher today. Overnight in the US, the S&P 500 declined 0.13% to 4,522.68 while the Dow Jones Industrial Average shed 39.11 points to 35,360.73. The Nasdaq Composite dipped fractionally to about 15,259.24.
The Caixin/Markit manufacturing Purchasing Managers’ Index for August came in at 49.2 today, below the 50 mark that separates expansion from contraction.
Australia’s gross domestic product rose 0.7% in the June quarter, above expectations for a 0.5% increase, according to Reuters.
Deutsche Bank International Private Bank’s Tuan Huynh says the August reading was not unexpected, adding that the company has lowered its growth forecast for Chinese GDP this year to 8.2% from 8.7%.
On Monday, China reported that factory activity expanded at a slower pace while the services sector slumped into contraction, showing that China’s current soft patch is continuing in the third quarter,” Mansoor Mohiuddin, chief economist, Bank of Singapore, says in a note.
Mohiuddin adds that “authorities may become more open to providing further monetary and fiscal stimulus to keep the economy from experiencing a broader slowdown for the rest of the year.”
ANZ analysts say ahead of the release that the figures would be “largely old news. The more pressing question is how large the September quarter GDP contraction will be.
In currency markets, the dollar index, which measures the greenback against six rivals, rose marginally having fallen to a three-week low the day before.
Oil was steady, with U.S. crude at $68.49 a barrel, and Brent crude at $71.72 per barrel, neither changed much on the day, having finished August with their first monthly losses since March.
OPEC+ meeting where major producers will decide whether to go ahead with their plan to add supply, is due to take place later today and we could see some movement depending on the outcome the meeting.
Presenter: Brian Fernandez
Check out more Asian Midday Marketwatch here.