Asian stocks slumped as China's service activity fell in December to the slowest in four months.
A report from the Beijing-based National Bureau of Statistics and the China Federation of Logistics and Purchasing showed today that the purchasing managers' index for the non-manufacturing industries dropped to 54.6 from 56 in November. A figure above 50 indicates expansion.
The data comes a day after two separate reports pointed to a deceleration in China's manufacturing sector, raising concerns that the world's second largest economy might be weakening.
Hong Kong's Hang Seng index finished 2.24% lower, while the Shanghai Composite dropped 1.24% following the reports.
"Although both PMI manufacturing and services remain above the expansion zone, markets are worried that a loss of momentum in the Chinese economy could leave the emerging markets area feeling more vulnerable as the Fed in the US kicks off tapering," according to Ishaq Siddiqi, Market Strategist at ETX Capital.
Federal Reserve Chairman Ben Beranke is due to speak later today which might provide clues as to whether the US central bank will announce a further tapering this month.
Japan was closed for the New Year holidays after the Nikkei 225 closed up 0.69% in 2013.
The nation's currency climbed to 104.37 per dollar, extending this week's advanced to 0.7%.
On the company front, Industrial & Commercial Bank of China declined in Hong Kong.
Woodside Petroleum slid after crude futures traded near a month low.
Chinese coal producers edged lower after Jefferies Group analyst Laban Yu said the fuel's price may decline this year.
Celltrion advanced after the South Korean arthritis drug maker said its biggest shareholder was in talks with potential buyers.
Source: LiveCharts
A report from the Beijing-based National Bureau of Statistics and the China Federation of Logistics and Purchasing showed today that the purchasing managers' index for the non-manufacturing industries dropped to 54.6 from 56 in November. A figure above 50 indicates expansion.
The data comes a day after two separate reports pointed to a deceleration in China's manufacturing sector, raising concerns that the world's second largest economy might be weakening.
Hong Kong's Hang Seng index finished 2.24% lower, while the Shanghai Composite dropped 1.24% following the reports.
"Although both PMI manufacturing and services remain above the expansion zone, markets are worried that a loss of momentum in the Chinese economy could leave the emerging markets area feeling more vulnerable as the Fed in the US kicks off tapering," according to Ishaq Siddiqi, Market Strategist at ETX Capital.
Federal Reserve Chairman Ben Beranke is due to speak later today which might provide clues as to whether the US central bank will announce a further tapering this month.
Japan was closed for the New Year holidays after the Nikkei 225 closed up 0.69% in 2013.
The nation's currency climbed to 104.37 per dollar, extending this week's advanced to 0.7%.
On the company front, Industrial & Commercial Bank of China declined in Hong Kong.
Woodside Petroleum slid after crude futures traded near a month low.
Chinese coal producers edged lower after Jefferies Group analyst Laban Yu said the fuel's price may decline this year.
Celltrion advanced after the South Korean arthritis drug maker said its biggest shareholder was in talks with potential buyers.
Source: LiveCharts
