China’s manufacturing data recovered somewhat in July, climbing to a five-month high of 49.5 compared to 48.2 for the previous reading in June and giving nervous emerging markets a bit of confidence that not everything in the global economy is bad.
Asian markets moved lower during the overnight session led by Japanese utilities and financials. One bright spot was Hong Kong’s telecom sector, which rallied strongly enough to allow the Hang Seng Index to close higher by 0.42%.
The overnight Asian session saw equities jumping higher across the board led by the tech sector and better than expected U.S. housing starts.
Overnight markets gave back most of their gains as sentiment darkened. Hopes for a new round of quantitative easing to spur growth quickly faded after Federal Reserve Chairman Ben Bernanke’s written statement did not contain a clear path to QE3.
Overnight markets were in the green across Asia, led by Hong Kong’s Hang Seng Index by 1.75% while the others did trade with some cautionary sentiment. Market participants are focused today on Fed Chairman Ben Bernanke’s Congressional testimony for any clues toward QE3, and any indication the Chinese government may begin monetary easing.
It’s been over three years since China’s Shanghai Composite went as low as it went overnight (2174.96, -1.74%). Premier Wen Jiabao’s negative comments concerning Chin’s economy along with several corporate profit warnings increased market volatility.
Asian markets found relief overnight and climbed higher in a volatile fashion on mixed economic data from China. The country’s GDP expanded by 7.6%, in line with most economists’ surveys for the second quarter.
Overnight market participants were in for surprise in both the Asian and European sessions, sending all but one market into a sea of red. China was the exception, rising from the carnage by nearly a half percent.
Overnight markets were mixed with Chinese and Hong Kong markets rebounding after falling the last four out of five sessions.
Asian markets ended broadly down as China traded in a tight range when China’s government released export data. Exports moved higher by 11.3% year over year for the month of June or $180.21 billion, slowing from the previous reading of 15.3%. Imports also slowed to 6.3% compared to the previous month of 12.7%.