Asian Stocks Drop as China’s Economic Support Shows No Results: Asian stocks fell after four months of gains, as China’s efforts to support its economy showed no tangible results.

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Oil Prices

Asian Stocks

Purchasing Managers’ Index

Oil Prices Continue to Decline Amid Signs of Increased OPEC+ Production and China’s Struggles

Oil prices fell amid signs that the OPEC+ alliance will move forward with a plan to raise production starting
in October while economic headwinds in China continue to grow.
Brent crude futures for November delivery dropped to around $76 a barrel after losing more than 2% on Friday,
and West Texas Intermediate traded near $73.
According to delegates involved in the discussions, the OPEC+ alliance
is set to add 180,000 barrels daily as it gradually restores halted production since 2022.

Over the weekend, Chinese data showed factory activity contracted for the fourth month in August.
The housing sector’s recession deepened,
raising concerns that the world’s largest crude oil importer might struggle to meet its economic growth target this year.

Asian Stocks Drop as China’s Economic Support Shows No Results

Asian stocks fell after four months of gains, as China’s efforts to support its economy showed no tangible results.
Indices fell in Australia and China, while the South Korean index remained unchanged.
Japanese stocks were the only ones to rise on Monday,
supported by news of corporate earnings that exceeded expectations.
In Hong Kong, the main index declined,

with shares of New World Development falling 12%
after the debt-laden real estate developer said it expects to post its first annual loss in two decades.

U.S. futures also edged slightly lower, suggesting that the S&P 500 is poised to decline after closing higher on Friday,
supported by data that bolstered the Federal Reserve’s expectations of imminent rate cuts.
The dollar remained stable,
and global cash Treasury markets closed Monday due to the U.S. Labor Day holiday.
Australian government bond yields rose.

China’s Caixin Manufacturing PMI Better Than Expected

Data released by S&P Global on Monday morning showed

China’s Caixin Manufacturing PMI grew at a pace that exceeded market expectations in August.
According to the data, the Caixin Manufacturing PMI recorded 50.4 points in August,
significantly better than the forecasted 50.0 points.
The Caixin Manufacturing PMI in the People’s Republic of China had recorded 49.2 points in July.

Asian Stocks Drop as China’s Economic Support Shows No Results

Asian Stocks Drop as China’s Economic Support Shows No Results

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