Asia-Pacific markets poised to trade lower; survey on China’s factory activity results ahead

Asia-Pacific markets poised to trade lower; survey on China’s factory activity results ahead


SINGAPORE — Asia-Pacific futures pointed to a lower open on the first day of the new quarter as investors wait for the results of a private survey on Chinese factory activity.

The Nikkei futures contract in Osaka was at 26,380. That’s compared against the Nikkei 225’s last close at 26,393.04.

In Australia, SPI futures were at 6,513, slightly lower than the S&P/ASX 200’s last close at 6,568.1.

The Bank of Japan is set to release results of its quarterly tankan business sentiment survey before the market open.

The Caixin/Markit manufacturing Purchasing Managers’ Index for June will also be released later Friday. It is expected to be 50.1, according to a Reuters poll.

PMI readings are sequential and represent month-on-month expansion or contraction. The 50-level separates contraction from expansion.

The official PMI for June stood at 50.2, returning to growth after three months, according to data released Thursday.

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Markets in Hong Kong were closed on Friday for a holiday.

The city commemorates the 25th anniversary of its handover from the U.K. to China on Friday. Chinese President Xi Jinping arrived in Hong Kong on Thursday to participate in the anniversary events. It was his first trip outside mainland China since Covid hit.

Hong Kong’s new chief executive, John Lee, will also be sworn in on Friday. Lee, a Beijing loyalist, was the only candidate in the running to replace outgoing leader Carrie Lam.

On Wall Street, U.S. stocks closed the second quarter of the year lower. The S&P 500, which had its worst first half in more than 50 years, declined nearly 0.9% to 3,785.38.

Meanwhile, the Dow Jones Industrial Average slipped 253.88 points, or 0.8%, to 30,775.43, and the Nasdaq Composite pulled back by 1.3% to 11,028.74.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.685.

The Japanese yen traded at 135.77 per dollar, after briefly weakening past the 137 level earlier this week. The Australian dollar was at $0.6896.



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