Asian Markets Are Weak on December 5
8:30 AM EST – US trade balance (October)
9:45 AM EST – US Markit composite PMI (purchasing managers’ index) (November)
9:45 AM EST – US services PMI (November)
10:00 AM EST – US ISM non-manufacturing PMI (November)
4:35 PM EST – US API weekly crude oil stock
Interested in HSI-INDEX? Don't miss the next report.
Receive e-mail alerts for new research on HSI-INDEX
After falling for three consecutive weeks, China’s Shanghai Composite Index started this week on a mixed to weak note. Following a disappointing start this week, the Shanghai Composite Index started Tuesday lower and closed near the opening price.
The market sentiment was mixed at the beginning of this week amid concerns about weak manufacturing activity in November and a rally in consumer sectors. On Tuesday, the market was supported by the release of November’s stronger-than-expected services activity data. According to data released by Markit, China’s Caixin services PMI rose to 51.9 in November. It’s better than analysts’ forecast of 51.5.
On December 5, the Shanghai Composite Index fell 0.18% and closed the day at 3,303.68. The SPDR S&P China (GXC) fell 0.46% on December 4.
After pulling back last week, Hong Kong’s Hang Seng Index started this week on a stronger note but didn’t carry the strength forward. On Tuesday, the Hang Seng Index started the day lower and fell to four-week low price levels. The overnight sell-off in IT stocks along with decreased risk weighed on the Hang Seng Index. Tencent Holdings’ fall to four-week low levels also weighed on the Hang Seng Index.
The Hang Seng Index fell 1.0% and closed the day at 28,842.80. The iShares MSCI Hong Kong (EWH) fell 0.51% on December 4.
Japan’s Nikkei Index rose for two consecutive trading weeks but started this week on a weaker note by pulling back on Monday. Carrying forward the weakness, the Nikkei Index opened lower on Tuesday and fell to one-week low price levels. The sentiment was dented by the overnight tech sell-off on Wall Street along with weak sentiment in Asia.
On December 5, the Nikkei Index fell 0.37% and closed the day at 22,622.38. The iShares MSCI Japan (EWJ) fell 1.1% on December 4.
In the next part, we’ll discuss how European markets performed in the early hours on December 5.