Investing.com - Asian stocks moved lower in early trade Tuesday, as U.S. manufacturing data signaled slow growth in the world’s largest economy and the strengthening yen dampened enthusiasm for export shares in Tokyo.
During early Asian trade, Hong Kong’s Hang Seng Index fell 0.52% to 22,549, Japan’s Nikkei 225 Index gave up 1.14% to 9,848.88, Australia’s S&P/ASX 200declined 0.73% to 4,464.70, and South Korea’s Kospi dropped 1.08% to 2,148.77.
Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange lost 1% to 843.43.
Before the start of Tuesday trading, the U.S. Institute of Supply Management’s Manufacturing Index showed a more-than-than expected drop to 50.9 in July. The figure fell from 55.3 the previous month, and far below economist’s forecast of a drop to 54.8.
The Japanese yen strengthened against the U.S. dollar following the ISM’s report, with JPY/USD hitting 76.27, only fractionally off the Japanese currency’s all-time high of 76.25 against the greenback in the days following the March 17 earthquake and tusnamis.
Japanese media reports suggested that the Bank of Japan was preparing to intervene in the currency market in an effort to reverse persistent strength in the Japanese yen.
Exporters, who see earnings dwindle when repatriating overseas profits into local currency, took hits in the session with Sony Corp. down 0.15%, Toyota Motor Corp. off by 0.15%, and South Korea’s Hyundai Motor Co. giving up 1.5%.
Asian markets were greeted mid-session by news that the U.S. House of Representatives had passed a bill to increase the USD14.3 trillion by USD2.4 trillion. Market fears had centered on an impending U.S. default on its debt and a possible downgrade from its triple-A rating.
The outlook for European stocks was mixed. The EURO STOXX 50 futures pointed to a 2% drop to 2,600.50, France’s CAC 40 futures was higher by 0.06% to 3,596.20, the FTSE 100 futures dipped 0.05% to 5,747.50 while Germany’s DAX futures fell 0.13% to 6,964.40.
A vote on the House-approved debt ceiling measure was expected to come to a vote in the U.S. Senate on Tuesday.
During early Asian trade, Hong Kong’s Hang Seng Index fell 0.52% to 22,549, Japan’s Nikkei 225 Index gave up 1.14% to 9,848.88, Australia’s S&P/ASX 200declined 0.73% to 4,464.70, and South Korea’s Kospi dropped 1.08% to 2,148.77.
Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange lost 1% to 843.43.
Before the start of Tuesday trading, the U.S. Institute of Supply Management’s Manufacturing Index showed a more-than-than expected drop to 50.9 in July. The figure fell from 55.3 the previous month, and far below economist’s forecast of a drop to 54.8.
The Japanese yen strengthened against the U.S. dollar following the ISM’s report, with JPY/USD hitting 76.27, only fractionally off the Japanese currency’s all-time high of 76.25 against the greenback in the days following the March 17 earthquake and tusnamis.
Japanese media reports suggested that the Bank of Japan was preparing to intervene in the currency market in an effort to reverse persistent strength in the Japanese yen.
Exporters, who see earnings dwindle when repatriating overseas profits into local currency, took hits in the session with Sony Corp. down 0.15%, Toyota Motor Corp. off by 0.15%, and South Korea’s Hyundai Motor Co. giving up 1.5%.
Asian markets were greeted mid-session by news that the U.S. House of Representatives had passed a bill to increase the USD14.3 trillion by USD2.4 trillion. Market fears had centered on an impending U.S. default on its debt and a possible downgrade from its triple-A rating.
The outlook for European stocks was mixed. The EURO STOXX 50 futures pointed to a 2% drop to 2,600.50, France’s CAC 40 futures was higher by 0.06% to 3,596.20, the FTSE 100 futures dipped 0.05% to 5,747.50 while Germany’s DAX futures fell 0.13% to 6,964.40.
A vote on the House-approved debt ceiling measure was expected to come to a vote in the U.S. Senate on Tuesday.