Asian stocks dropped, with Shanghai shares retreating from the year’s highest close, and Australia’s dollar slipped as a private gauge of Chinese services industries fell to a record low. Emerging-market currencies climbed as corn and soybeans declined.
The MSCI Asia Pacific Index fell 0.4 percent by 11:45 a.m. in Tokyo. Standard & Poor’s 500 Index futures lost 0.1 percent after the U.S. gauge rebounded from its worst week since 2012. The Shanghai Composite Index decreased 0.3 percent and most Hong Kong shares declined. The Aussie weakened 0.1 percent to 93.23 U.S. cents. Malaysia’s ringgit gained 0.3 percent and Indian rupee forwards strengthened before a rates decision. Corn and soybeans lost 0.5 percent.
A purchasing managers’ index of China’s non-manufacturing sector fell to 50 in July, the borderline between expansion and contraction and the lowest reading in data from HSBC Holdings Plc and Markit Economics. Central banks in Australia and India are projected to keep interest rates unchanged today, with services data due from China to the U.K. and U.S. Tom DeMark, the developer of market indicators, said the Shanghai Composite Index will end its world-beating advance within days and fall about 10 percent.
“The Chinese PMI figures came in a bit below expectations, showing a stalling of the recent upturn in the Chinese data, so that’s putting some downward pressure on commodity currencies like the Aussie,” said Desmond Chua, a strategist at CMC Markets in Singapore. “The Aussie will remain above the 93 U.S. cents level unless we see a surprisingly bearish tone in the RBA statement.”
Bloomberg
