Asian stocks fall amid weak China services data
On Thursday, trading in Asia appeared to be quite lackluster because market participants were cautious regarding a multi-week stock surge, which is quickly losing momentum.
The Hang Seng Index traded with a 0.2% slump, while the Shanghai Composite Index surged 0.2%. As for Australian S&P/ASX 200, it soared 0.1%.
A few markets in the region were unavailable for holidays, including Japan and South Korea.
Investors were mainly focused on data showing that China’s services activity expanded in April, though at a relatively slower pace than in March. Meanwhile, the Caixin China services purchasing managers index dropped from 52.2 to 51.8. By the way, a reading higher 50 stands for an expansion.
Stocks of Hong Kong pared their losses after the issue of the PMI data, while the Australian dollar strengthened against the greenback.
There’s a great concern that notwithstanding a huge injection of liquidity carried out by China’s government, the service sector is unable to boom.