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Asian Markets Mixed after Chinese Data

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The Asian and Pacific Rim markets were mixed on Wednesday after the private Caixin purchasing managers’ index, for March, showed that manufacturing in the world’s second largest economy expanded.

In Japan, the Asian benchmark, the Nikkei 225, was down one percent and shares on the broader Topix index in Toyo fell 0.66 percent.

Japanese economic data showed that that the big manufacturer’s index in the Bank of Japan’s (BOJ) Tankan first quarter came in at its lowest level since March 2013 at -8.

In South Korea, the Kospi composite index was flat and the Kosdaq was up over one percent. Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was up 3.26 percent.

Asian Traders Digest the Caixin Manufacturing PMI Data

China released their March Caixin/Markit manufacturing purchasing managers’ index (PMI). This came in at 50.1, which is above the contraction level at 50. The markets had expected a print of 45.5. The February number was at 40.3 which was the sharpest contraction on record and at the height of the Covid-19 pandemic.

The official Chinese manufacturing PMI, for March, released on Tuesday came in at 52. This also was above expectations that called for a contraction.

On the mainland in China, the markets were up slightly. The Shanghai composite added 0.4 percent and the smaller Shenzhen composite was up about 0.66 percent.

Traders Wait on U.S. ADP Labor Data and ISM Manufacturing PMI

Today, the private ADP-non-farm payroll change will be released in the United States. This is the lead-up to the Labor Department’s non-farm payroll (NFP).

The Institute for Supply Management (ISM) will release their manufacturing purchasing managers’ index (PMI) for March. Also on the U.S. calendar is construction data.

The Eurozone will continue with their post-pandemic data for the month of March. Germany is releasing monthly retail sales. Spain and the Eurozone will also release PMI data.

Spain will publish their manufacturing PMI and the Eurozone will release their final monthly purchasing managers’ index. Italy will publish their unemployment rate as will the Eurozone.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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