Asian markets news: Stocks fall as global growth concerns mount

A private-sector survey on Tuesday showed China's services activity expanded at the slowest pace in eight months in August, reflecting weak demand.

The Hang Seng Index and China's benchmark CSI300 Index both opened down about 0.3 per cent. Image: Reuters

Asian markets news: Stocks fell on Wednesday after weak economic data in China and Europe heightened concerns over global growth, while the dollar firmed as investors weighed the outlook for US interest rates.

MSCI's gauge of Asia Pacific stocks outside Japan was down 0.5 per cent at 0143GMT.

Australia's S&P/ASX 200 fell 0.55 per cent even as second-quarter gross domestic product beat forecasts with a 0.4 per cent rise.

TRENDING NOW

The Hang Seng Index and China's benchmark CSI300 Index both opened down about 0.3 per cent.

A private-sector survey on Tuesday showed China's services activity expanded at the slowest pace in eight months in August, reflecting weak demand.

Manufacturing data from Germany, Britain and the euro area also showed declines, while their service sectors fell into contraction.

"The China decline was bigger than expected," said Redmond Wong, Greater China market strategist at Saxo Markets.

"The Chinese government has become more active and is relaxing more regulation but whether it is good enough remains to be seen," he added.

"The Europe data were rather weak. We think there is still a high chance to have a mild recession in the US and Europe toward the end of the year or beginning of next year."

Shares in Europe and the US fell on Tuesday over concerns about weak global growth.

The yield on the benchmark US 10-year Treasury note rose 9 basis points to 4.26 per cent after reaching 4.268 per cent, its highest since Aug. 25, while the US dollar rose to a near six-month high against a basket of currencies.

Investors are digesting recent signals on potential US interest rate hikes. Fed Governor Christopher Waller said on Tuesday that the latest round of economic data was giving the US central bank space to see if it needs to raise rates again.

"The Fed is a focus for us, we think they have more work to do with potential for US rates to continue heading higher," said John Milroy, investment adviser at Ord Minnett.

US crude was up 0.16 per cent at $86.83 a barrel. Brent gained 0.19 per cent to trade at $91.21 a barrel.

Spot gold fell 0.07 per cent to $1,924.5 an ounce, after reaching its lowest since Aug. 1 on Tuesday.

TAGS: