CHINA S PMI DATA DISAPPOINTS AS MANUFACTURING SLOWS
Asian stocks are lower this morning after a report from HSBC showing that China's Purchasing Managers' Index declined last month.
China's PMI fell 1.1 to 50.5 from the previous month, falling below analysts' expectations of 51.5. Nevertheless, the figure is above 50 which still indicates expansion. Exports also fell to 48.6 from 50.5. These figures bring about concern regarding the world's second largest economy, especially after data last week showed that the country's GDP missed expectations by 0.3%.
The yen increased 0.5% against the dollar following the report, and indeed against all of its major peers. The yen is trading 1.3% from the 100 mark. The data has had an adverse effect on Australia and New Zealand with China being their main export partner. The kiwi lost 0.62% against the dollar while the Aussie dropped 0.4%, reaching a six-week low.
China isn't the only one with disappointing economic news. Yesterday the US showed a 0.6% drop in Home Sales, falling well below predictions for an increase. New Home Sales data will be released later in the day.
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