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23 Apr 2013
Asian markets fall on disappointing China HSBC PMI, Europe eyeing Markit PMI
FXstreet.com (Barcelona) - Equity indexes in Asia had a risk-off day, with Mainland China’s Shanghai Composite (-2.60%) being hit the hardest after disappointing HSBC flash manufacturing PMI at 50.5 (mkt 51.5). “This downside miss gives credence to PBoC Governor Zhou weekend remarks about China is now aiming for "lower, sustainable growth". Consensus and the major institutions such as IMF still expect 8+% GDP growth this year, so there’s more work to do to lower expectations. TD at 7¾%”, wrote TD Securities analysts.
Japan’s Nikkei Stock Average (-0.29%), South Korea’s Kospi (-0.40%), Hong Kong’s Hang Seng (-1.12%) and India’s Bombay Sensitive (-0.50%) fell as well.
The German DAX 30 (+0.06%) and the French CAC 40 (+0.16 %) are signaling a slightly higher European opening ahead of the preliminary release of April PMI by Markit. More weakening should force the ECB to act: “. If the PMIs decline, the odds tilt towards the ECB cutting the refi rate 25bps in May, with potential to cut again in June if the surveys fall further next month and eventually drag down the hard data”, wrote TD Securities analysts.
Japan’s Nikkei Stock Average (-0.29%), South Korea’s Kospi (-0.40%), Hong Kong’s Hang Seng (-1.12%) and India’s Bombay Sensitive (-0.50%) fell as well.
The German DAX 30 (+0.06%) and the French CAC 40 (+0.16 %) are signaling a slightly higher European opening ahead of the preliminary release of April PMI by Markit. More weakening should force the ECB to act: “. If the PMIs decline, the odds tilt towards the ECB cutting the refi rate 25bps in May, with potential to cut again in June if the surveys fall further next month and eventually drag down the hard data”, wrote TD Securities analysts.