December 26, 2024

SHANGHAI, CHINA – JANUARY 1: The sun rises over the Oriental Pearl Tower on New Year’s Day on January 1, 2023 in Shanghai, China. (Photo credit: VCG/VCG, Getty Images)

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Asia-Pacific markets got off to a mixed start in the second half of the year as investors assessed China’s June business activity data and Japan’s business confidence data.

China released Official PMI data The weekend manufacturing PMI was 49.5, unchanged from May and in contraction territory for the second consecutive month.

However, a discrepancy between a private survey of manufacturing activity and official data showed Business conditions improved significantly Within three years. The S&P Caixin PMI rose to 51.8 in June, compared with 51.7 in May.

Confidence among Japan’s large manufacturers There was improvement in the second quarter, with the Bank of Japan’s Tankan survey at +13, compared with +11 in the first quarter. Economists polled by Reuters had expected a reading of +12.

The non-manufacturer confidence index was +33, in line with market forecasts and down from +34 in the previous quarter. This is also the first time in four years that non-manufacturing confidence has deteriorated.

In addition, the S&P Global Purchasing Managers Index will also release data on several Asian economies, including China, Japan and South Korea.

Japan’s Nikkei 225 Index It rose 0.34% to a 3-month high, while the KLCI rose 0.49%.

Korean Cospi It was flat, but the Kosdaq index of small-cap stocks was up 0.76%. The country saw its Factory activity expands at fastest pace Since February 2022, the manufacturing PMI in June rose from 51.6 to 52.0.

Mainland China’s CSI 300 index fell slightly, and Australia’s S&P/ASX 200 index fell 0.23%.

Hong Kong markets were closed on Monday for a public holiday.

All three major U.S. stock indexes fell overnight as traders focused on a set of “nearly perfect” inflation data, an industry expert said.

Inflation slowed to its lowest annual rate in more than three years in May, with the core personal consumption expenditures price index rising just 0.1% last month and 2.6% from the previous year, in line with Dow Jones forecasts.

The core personal consumption expenditures index, which excludes food and energy prices, is the Fed’s preferred inflation gauge. Overall PCE, which includes food and energy, was unchanged from the month but grew 2.6% year-on-year, also in line with expectations.

David Donabedian, chief investment officer of CIBC Private Wealth US, said: “Today’s PCE report was almost perfect from a market perspective. It was certainly a positive report.”

The S&P 500 fell 0.41% and the Nasdaq fell 0.71%. Both moving averages hit all-time intraday highs earlier in the session before falling back. The Dow Jones Industrial Average fell 0.12%.

—CNBC’s Hakyung Kim and Alex Harring contributed to this report.

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