Asian markets ended mostly flat,
unable to sustain Friday's massive rally
. With Hong Kong's (
EWH
,
quote
) exchange closed for the day, poor manufacturing data from China,
and lingering positivity stemming from Europe's banking deal, it's
of little surprise that Asian markets lacked leadership in Monday
trading.
[caption id="attachment_65632" align="alignright" width="300"
caption="Monday trading in Asian markets was a bit of a snoozer"]
[/caption]
Asian markets were delivered an early blow as data from China (
FXI
,
quote
) indicated that things have yet to improve in the world's second
largest economy. Two separate data points indicated that
manufacturing in China continues to slow.
Two Purchasing Manager's Indices were released on
Monday
, with the official PMI conducted by the government coming in at a
50.2. While any number over 50 is indicative of expansion in the
manufacturing sector, this was the lowest reading since
November.
The HSBC PMI, which focuses more on small and medium-sized
firms, showed the manufacturing sector contracting, as the June
number dropped to 48.2 from 48.4 in May.
The Shanghai Composite fluctuated as a result of both this
disappointing domestic news and the notion that Europe has finally
started to remedy its structural problems, which could be bullish
for China going forward. The exchange ended the day almost exactly
flat, up a meager 0.07 points, which constitutes a 0.00%
"gain."
The Hong Kong exchange was closed for trading on Monday, as
Hongkongers celebrated the 15th anniversary of the British handover
of this former colony to the Chinese and the appointment of a new
leader. While supposedly a joyous occasion, government celebrations
were
marred by protestors seeking increased democratic freedoms
, as well as voicing their frustrations over increasingly large
wealth disparities seen in the Special Administrative Region.
Elsewhere in Asian markets, the Nikkei 225 (
EWJ
,
quote
) ended virtually flat, down a mere 0.04%. As well, at the time of
writing, the Bombay Sensex (
INDY
,
quote
) was up 0.05%. Poor data from China and continued elation over
Europe led to a direction-less trading day throughout most major
Asian markets.
Of the major Asian markets, only one traded in a definitive
direction. The Taiex (
EWT
,
quote
) in Taipei finished up 0.67%
as relief over the European deal apparently outweighed negative
Chinese news
.
American traders on Monday should take their cues from European
markets, although stocks with exposure to the Chinese manufacturing
sector can be expected to stumble.