Investing.com - Asian stock markets were lower on Tuesday, as concerns over the outlook for global growth weighed on appetite for riskier assets, while shares in Australia came under pressure after the Reserve Bank of Australia held rates unchanged.
Investors were also weary of making big moves ahead of the European Central Bank's policy meeting on Thursday and U.S. jobs data on Friday.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.35%, Australia’s ASX/200 Index declined 0.6%, while Japan’s Nikkei 225 Index ended 0.1% lower.
Downbeat manufacturing data released Monday shed light on the gloomy state of the global economy.
Manufacturing activity in China fell to the lowest level since March 2009 last month, as new orders slumped in the face of weakening global demand.
However, the weak data fuelled hopes policymakers in Beijing will introduce fresh stimulus measures to boost economic activity in the world’s second largest economy. China is a crucial market for the region's exporters.
Concerns over the outlook for growth in the euro zone also weighed after revised data showed that the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
But market sentiment remained supported by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on Thursday further supported gains.
Mounting speculation the Federal Reserve was moving closer to introducing fresh measures to stimulate growth in the U.S. economy also helped limit losses.
In Australia, financials fell sharply after the RBA held its benchmark interest rate steady at 3.50% in September, in a widely expected move.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “The board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate.”
Markets had been hoping for a more dovish statement, with a possible indication for a rate cut later in the year.
The big four banks all fell, with Australia's number 1 lender, the Commonwealth Bank of Australia falling 1%, while shares in Westpac Banking Group and ANZ Banking Group tumbled 2.6% and 2.3% respectively.
Elsewhere, in Tokyo, the Nikkei ended at the lowest level in four weeks for the third consecutive day as the uncertain global outlook weighed on automakers.
Shares in Toyotas slumped 0.3% after the automaker reported that sales in China dropped 15% last month.
On the upside, troubled electronics manufacturer Sharp saw shares rally 12.3% as investors bought the stock amid indications it will strike a revised investment deal with Taiwan’s Hon Hai Precision Industry at a lower price.
Meanwhile, in Hong Kong, the Hang Seng came under pressure amid ongoing concerns over a deeper-than-expected slowdown in China’s economy.
Chinese financials were mostly lower, with China Construction Bank shares trading down 0.8% and Bank of China declining 0.7%.
Property developers also contributed to losses, with Sino Land dropping 1.9% and China Overseas Land & Investment down 1.75%.
Looking ahead, European stock market futures were little changed, as investors looked ahead to the European Central Bank's policy setting meeting and U.S. jobs data later in the week.
The EURO STOXX 50 futures pointed to a gain of 0.1% at the open, France’s CAC 40 futures were flat, London’s FTSE 100 futures eased up 0.05%, while Germany's DAX futures pointed to a flat open.
Later Tuesday, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing activity.
Investors were also weary of making big moves ahead of the European Central Bank's policy meeting on Thursday and U.S. jobs data on Friday.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.35%, Australia’s ASX/200 Index declined 0.6%, while Japan’s Nikkei 225 Index ended 0.1% lower.
Downbeat manufacturing data released Monday shed light on the gloomy state of the global economy.
Manufacturing activity in China fell to the lowest level since March 2009 last month, as new orders slumped in the face of weakening global demand.
However, the weak data fuelled hopes policymakers in Beijing will introduce fresh stimulus measures to boost economic activity in the world’s second largest economy. China is a crucial market for the region's exporters.
Concerns over the outlook for growth in the euro zone also weighed after revised data showed that the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
But market sentiment remained supported by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on Thursday further supported gains.
Mounting speculation the Federal Reserve was moving closer to introducing fresh measures to stimulate growth in the U.S. economy also helped limit losses.
In Australia, financials fell sharply after the RBA held its benchmark interest rate steady at 3.50% in September, in a widely expected move.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “The board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate.”
Markets had been hoping for a more dovish statement, with a possible indication for a rate cut later in the year.
The big four banks all fell, with Australia's number 1 lender, the Commonwealth Bank of Australia falling 1%, while shares in Westpac Banking Group and ANZ Banking Group tumbled 2.6% and 2.3% respectively.
Elsewhere, in Tokyo, the Nikkei ended at the lowest level in four weeks for the third consecutive day as the uncertain global outlook weighed on automakers.
Shares in Toyotas slumped 0.3% after the automaker reported that sales in China dropped 15% last month.
On the upside, troubled electronics manufacturer Sharp saw shares rally 12.3% as investors bought the stock amid indications it will strike a revised investment deal with Taiwan’s Hon Hai Precision Industry at a lower price.
Meanwhile, in Hong Kong, the Hang Seng came under pressure amid ongoing concerns over a deeper-than-expected slowdown in China’s economy.
Chinese financials were mostly lower, with China Construction Bank shares trading down 0.8% and Bank of China declining 0.7%.
Property developers also contributed to losses, with Sino Land dropping 1.9% and China Overseas Land & Investment down 1.75%.
Looking ahead, European stock market futures were little changed, as investors looked ahead to the European Central Bank's policy setting meeting and U.S. jobs data later in the week.
The EURO STOXX 50 futures pointed to a gain of 0.1% at the open, France’s CAC 40 futures were flat, London’s FTSE 100 futures eased up 0.05%, while Germany's DAX futures pointed to a flat open.
Later Tuesday, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing activity.