Asian stock markets slid on Monday after a survey showed that Chinese manufacturing shrank in April for the fourth month in a row.
The results of the HSBC purchasing managers' index on Chinese factory activity were lower than than a preliminary reading, stoking fears among investors that the slowdown in the world's second biggest economy is entrenched.
"A lot of concern there about slowing again," said Andrew Sullivan, director of Asian sales trading at Kim Eng Securities.
"People were in general expecting from the recent data that the market was stabilising rather than slowing. This would seem to indicate that it's still slowing rather than stabilising."
Pessimism about China's manufacturing also offset some positive news on US employment that showed employers in the world's biggest economy added more jobs than expected in April, pushing the unemployment rate to its lowest in six years.
Price changes were also more volatile because several major markets were closed, cutting trading volume, Sullivan said. Markets in Japan and South Korea were closed and the London market is closed for the May day bank holiday.
Hong Kong's Hang Seng fell 1.5% to 21,917.39 and the Shanghai Composite in mainland China lost 0.7% to 2,011.54.
An announcement by China's securities regulator on Sunday night unveiling prospectuses for 25 IPO applicants also added to downward pressure by raising fears that supply of stocks would exceed demand.
Australia's S&P/ASX 200 dipped 0.2% to 5,449.50. Benchmarks in Taiwan, Singapore and New Zealand also fell.
theguardian.com
The results of the HSBC purchasing managers' index on Chinese factory activity were lower than than a preliminary reading, stoking fears among investors that the slowdown in the world's second biggest economy is entrenched.
"A lot of concern there about slowing again," said Andrew Sullivan, director of Asian sales trading at Kim Eng Securities.
"People were in general expecting from the recent data that the market was stabilising rather than slowing. This would seem to indicate that it's still slowing rather than stabilising."
Pessimism about China's manufacturing also offset some positive news on US employment that showed employers in the world's biggest economy added more jobs than expected in April, pushing the unemployment rate to its lowest in six years.
Price changes were also more volatile because several major markets were closed, cutting trading volume, Sullivan said. Markets in Japan and South Korea were closed and the London market is closed for the May day bank holiday.
Hong Kong's Hang Seng fell 1.5% to 21,917.39 and the Shanghai Composite in mainland China lost 0.7% to 2,011.54.
An announcement by China's securities regulator on Sunday night unveiling prospectuses for 25 IPO applicants also added to downward pressure by raising fears that supply of stocks would exceed demand.
Australia's S&P/ASX 200 dipped 0.2% to 5,449.50. Benchmarks in Taiwan, Singapore and New Zealand also fell.
theguardian.com
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