The Asian and Pacific Rim markets were mixed early Monday morning as traders throughout the region reacted to better than expected purchasing managers’ index (PMI) data out of China.
Asian traders are also watching the political tit for tat between the United States and China become tenser as both nations increase the war on words.
In Japan, the Asian benchmark, the Nikkei 225 was up 2.08 percent by the late morning hours. In Tokyo, the broader Topix index added 1.49 percent. On Friday, Japanese shares fell nearly three percent.
In Hong Kong, the benchmark Hang Seng index was down over 0.3 percent and in South Korea, the headline Kospi composite index reversed early losses to trade just above the flat line.
Elsewhere in the Asian and Pacific Rim, the Australian S&P ASX 200 was slightly in the red by the end of the morning trade session.
Asian Traders React to PMI Data out of China
On the mainland, in China, the equity markets were mixed to higher after better than expected Caixin/Markit manufacturing purchasing managers’ index (PMI) data for the month of July.
The Shanghai composite was up 0.9 percent and the Shenzhen component added 1.2 percent at one point during the morning hours.
Manufacturing in China, during the month of July, came in at 52.8. This is according to the private Caixin/Markit manufacturing purchasing managers’ index (PMI) data release. This was above analyst expectations for a print of 51.3 and well within expansion territory.
The United States Looks to Ban TikTok
U.S. President Donald Trump has said that he will soon ban the Chinese owned video app TikTok in the United States. This is the latest round of escalating political tensions between the world’s two largest economic powers.
On Sunday, Microsoft expressed an interest with purchasing U.S. operations of TikTok from the Chinese firm ByteDance.