| China's manufacturing and property figures disappoint. Israel poised for mass strike over war. Philippines uncovers scam farms in resort hotel. Here's what you need to know today. China has been relying on its manufacturing might and export engines to offset the drag from a slumping property market and keep its growth target in sight. But growing headwinds on both fronts suggest the government will need to step up support if it's to hit that goal of 5% expansion. Factory activity contracted for a fourth straight month in August, with sub indexes showing deepening deflationary pressures. Meantime, latest sales figures showed that the residential property slump deepened as expectations of a further drop in new-home prices hampered efforts to cushion the downturn. The property funk is weighing on China's $17 trillion economy and recent government efforts have yet to turn things around. Israel's largest labor group is poised for a nationwide strike on Monday, the strongest push yet to force the government into a Gaza cease-fire and secure the release of hostages held by Hamas. It comes after hundreds of thousands of Israelis demonstrated in cities around the nation on Sunday, after the bodies of six hostages were found in a tunnel in the Gaza Strip. Each was shot repeatedly, not long before being discovered, medical examiners said. Both the protests and the planned strike reflect deep anger at Prime Minister Benjamin Netanyahu, who critics say is prolonging the war rather than prioritizing the safe return of the roughly 100 remaining hostages in Gaza. Philippine authorities arrested more than 150 foreign nationals during a raid on an illegal online gaming hub on Saturday. Agents found dozens of people engaged in illegal activities on makeshift workstations inside a resort hotel on the island of Cebu, the immigration bureau said. At least three "scam farms" run by Chinese, Indonesian and Myanmar nationals were uncovered, investigators said, adding that a cybercrime offence had been filed for "facilitating cybercrime-related gambling, cybercrime-related qualified trafficking." The foreigners will be deported, the immigration bureau said. There's a new way to bet on some of the most watched Hong Kong stocks.
The city's bourse today launches weekly options on the Hang Seng Tech Index, which tracks stocks including Alibaba and JD.com, that also trade in the US. With many of its e-commerce giants losing shimmer in the recent earnings season, the gauge has lost 5.4% this year, compared with a 5.5% gain in the benchmark Hang Seng Index. Hong Kong Exchanges & Clearing is following global peers in expanding its derivatives offerings in a bid to boost trading on a market that's been lagging in recent years. Get the full story here. Asian stocks are set for a cautious start into a historically volatile month for markets as signs mount that China's efforts to support its ailing economy are yet to take hold. Equity futures in Australia and Hong Kong point to early losses, while those for Japan and China rose. US contracts were little changed after the S&P 500 closed 1% higher on Friday. September has been one of the worst months for stocks in the past four years, while the dollar typically outperforms, according to data compiled by Bloomberg. This month may be no different with the US jobs report later this week serving as a guide to when the Fed may cut rates. Chinese stocks may have ended August on a high, but the outlook remains clouded as economic indicators continue to deteriorate. Official PMIs released over the weekend contracted yet again, marking the fourth consecutive month of decline. Sub-indexes reveal an increase in deflationary pressures. While bad weather may have contributed to the slide, it's clear that fundamental challenges in the economy have yet to be resolved. Even if this morning's Caixin PMI shows a return to expansion as expected, it will do little to change the broader narrative. Across the broader Asia-Pacific region, equity markets are likely to find some support from this morning's PMI reports, which are expected to confirm that regional economies remain resilient despite China's slowdown. Global demand appears to be holding steady, benefiting big export-driven economies. Looking ahead, the region still needs consistent reinforcement that US growth is robust for the rally to resume. That puts the focus on the labor report at the end of this week. Inflation is on the right trajectory but any larger cracks will stoke angst among investors. Mary Nicola is an MLIV macro strategist for Bloomberg News, based in Singapore. | 
No comments:
Post a Comment