Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Asian Stocks Mixed Over Disappointing China Data

Stock Markets Feb 02, 2021 09:44PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – Asia Pacific stocks were mixed on Wednesday morning. The previous week’s retail trading that fueled volatility in heavily shorted shares stabilized, companies reported better-than-estimated revenue and progress was made in passing more U.S. stimulus measures, which all helped boost sentiment However, this was damped by disappointing data from China.

China’s Shanghai Composite was down 0.28% by 9:36 PM ET (2:36 AM GMT) and the Shenzhen Component was down 0.27%.

January’s Caixin services Purchasing Managers Index (PMI), released earlier in the day, was 52, against December’s 56.3. The release follows disappointing economic data released earlier in the week suggesting a slowdown in the Chinese economic recovery. The Caixin manufacturing PMI was 51.5, the manufacturing PMI at 51.3 and the non-manufacturing PMI at 52.4 respectively.

Hong Kong’s Hang Seng Index fell 0.61%.

Japan’s Nikkei 225 gained 0.67% and South Korea’s KOSPI was up 0.43%.

In Australia, the ASX 200 jumped 1.10%.

U.S. shares rose after Alphabet (NASDAQ:GOOGL) Inc. (NASDAQ:GOOG) and Inc. (NASDAQ:AMZN) reported better-than-estimated revenue. Amazon CEO Jeff Bezos will also step down from the role in the third quarter of 2021 and will be replaced by Andy Jassy, currently the CEO at Amazon Web Services.

The collapse in Reddit speculative trades that saw shares in GameStop Corp . (NYSE:GME) and AMC Entertainment Holdings Inc. (NYSE:AMC) fall sharply also gave shares a boost.

"The fact that markets have cooled down a bit with the retail-trading frenzy, that’s giving a little bit of optimism. Anytime there’s more stability to markets, there’s a breath of relief of all investors,” Verdence Capital Advisors director of portfolio strategy Megan Horneman told Bloomberg.

“Wallstreetbets is hitting the point of diminishing value … retail traders will still be a force to be reckoned with, but we are perhaps past the peak you-only-live-once world with the cat out of the bag,” AxiCorp Financial Services Chief Global Markets Strategist Stephen Innes told Reuters.

Treasury yields edged higher as progress was made towards further U.S. stimulus measures. The Senate began debating a budget resolution for the 2021 fiscal year on Tuesday. The debate is the first step towards passing a $1.9 trillion stimulus package proposed by President Joe Biden via a simple majority, rather than the 60-vote threshold required for most legislation.

All this increased optimism about a global economic recovery from COVID-19 in 2021.

“All the ingredients for a rapid recovery from the second quarter onwards are getting sweetly baked into the reopening party cake,” said AxiCorp’s Innes.

However, other investors struck a more cautious note. Bank of America Corp (NYSE:BAC). analysts issued a warning about rising bullishness, saying that a sentiment indicator is close to hitting a “sell” signal. Citigroup Inc (NYSE:C) analysts expressed concerned over elevated earnings expectations, noting that share prices may be ahead of themselves by about 10%.

The Bank of England will hand down its policy decision on Thursday. The U.S. payrolls report for January, including non-farm payrolls, will be released on Friday.

Asian Stocks Mixed Over Disappointing China Data

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email