(Bloomberg) — Asian shares edged lower after ratcheting up four months of gains, as China’s efforts to support its ailing economy showed no signs of taking hold.
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Benchmarks in Australia and China slipped, while those for South Korea were little changed. Japanese equities, the outlier of the region, advanced on Monday helped by news of corporate profits surpassing expectations. In Hong Kong, the benchmark index declined with shares of New World Development Co. falling 12% after the indebted property developer said it expected to post its first annual loss in two decades.
US contracts were also slightly down, suggesting the S&P 500 is in for a reversal after closing higher on Friday, as data supported expectations of pending Federal Reserve rate cuts. The dollar was steady as cash Treasuries were closed globally Monday for the US Labor Day holiday. Australian government bond yields rose.
On the first day of trading in a typically volatile month for markets, economic statistics for a number of Asian countries were set for publication. Caixin China manufacturing data increased more than expected, but failed to reverse sentiment after an official gauge of factory activity contracted for a fourth straight month in August. Purchasing managers’ surveys for Taiwan, Thailand and Indonesia all declined.
The latest Chinese home sales figures showed a worsening residential slump, after China Vanke Co. — one of the nation’s biggest developers — underlined the industry’s woes late Friday by reporting a half-year loss for the first time in more than two decades.
Authorities said on Friday they had stepped into the government-debt market to curb a relentless bond rally, though the move raises new questions about efforts to stimulate the world’s second-largest economy.
Elsewhere in Asia, Japanese businesses boosted investment in the second quarter of the year, reaffirming signs of moderate domestic demand-led activity after growth rebounded in the period.
September Volatility
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