Asian Midday Marketwatch – More worries on China’s economic slowdown & regulatory crackdown

• China’s factory activity expanded at a slower pace in August as coronavirus-related restrictions and high raw material prices pressure manufacturers in the world’s second largest economy, while services activity contracted sharply, as national data showed this morning. Jeff outlines his expectations and the impact to Asian markets, particularly ASEAN markets

• Beijing on Monday limits kids under 18 playing online games to just three hours a week – an hour on Fridays, weekends and holidays – which analysts expect will continue to weigh in on tech stocks. He comments on this and talks about a “cultural shift “ and a long term process” which will weigh in on growth and valuation of tech stocks

• The slower growth in China and how it will impact ASEAN. Jeff holds the view that a rate cut and more stimulus will then have a modest positive for Asia as a whole

• Oil markets: US crude fell 0.51% to $68.86 a barrel and Brent was down 0.56% at $73 a barrel in Asian trade as Hurricane Ida weakened into a Category 1 hurricane within 12 hours of coming ashore.  It’s not clear at the moment what the real impact will be.

• Eyes on OPEC+ meeting after hurricane Ida hits;

i) short term supply shock is relieved

ii) OPEC+ meeting could mean more future supply