Investing.com - Asian shares fell on Monday as a survey of China manufacturing for July came in weaker than expected.
The Shanghai Composite fell more than 2.4%, while the Nikke 225 was down 0.45%. The S&P/ASK 200 eased 0.42%
The manufacturing PMIs from Japan, seen at 51.4 in July, came in at 51.2 and for China, the Caixin/Markit final for July dropped to 47.8, well below the 48.3 in the flash estimate. The Australian economy is highly dependent on exports to China.
Last week, U.S. stocks were lower after the close on Friday, as losses in the Oil & Gas, Technology and Financials sectors led shares lower.
At the close in New York, the Dow Jones Industrial Average declined 0.31%, while the S&P 500 index lost 0.22%, and the NASDAQ Composite index declined 0.01%.
On Friday, data pointed to sluggish U.S. wage growth tempered expectations for a rate hike in the coming months.
The Department of Labor reported that the U.S. employment-cost index, a measure of workers wages and benefits, rose just 0.2% in the second quarter. It was the smallest quarterly increase since records began in 1982 and was well below economistsí expectations of a 0.6% increase.
The unexpectedly weak data prompted investors to push back expectations on the timing of an initial hike in short term interest rates.
The U.S. economy expanded at an annual rate of 2.3% in the three months to June the Commerce Department said Thursday. First quarter growth was revised up to 0.6% from a previously reported contraction of 0.2%.
n the week ahead, investors will be turning their attention to the latest U.S. employment report, which could reinforce expectations for higher interest rates.
On Monday, the U.K. is to publish its manufacturing index.
Markets in Canada are to remain closed for a national holiday.
The U.S. is to release data on personal income and expenditure. The Institute of Supply Management is to release data on manufacturing activity.