Private survey on Chinese services sector activity in May released

Private survey on Chinese services sector activity in May released

SINGAPORE — Shares in Asia-Pacific were mixed in Monday morning trade, as a private survey showed another contraction in China’s service sector activity for May.

Mainland Chinese stocks traded in positive territory, with the Shanghai Composite up 0.13% while the Shenzhen Component gained 0.812%. Hong Kong’s Hang Seng index advanced 0.39%.

China’s Caixin Services Purchasing Managers’ Index released Monday came in at 41.4, better than April’s reading of 36.2 but still in contraction territory.

The release comes on the back of last week’s official non-manufacturing PMI print of 47.8 for May, an improvement over April’s reading of 41.9 but still below the 50 mark that separates expansion from contraction.

PMI readings are sequential and represent month-on-month expansion or contraction.

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In Japan, the Nikkei 225 hovered mildly higher as shares of Fast Retailing jumped 1.26%. The Topix index traded 0.12% lower.

Australia’s S&P/ASX 200 dipped 0.42%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.21% lower.

JPMorgan Asset Management’s Tai Hui said the firm is currently watching signs of US momentum “clearly starting to decelerate” as well as the impact of tighter monetary conditions.

“I think that’s where we’re monitoring very closely but we’re not quite there yet when it comes to [being] bearish on … Asia markets,” he told CNBC’s “Squawk Box Asia” on Monday.

Markets in South Korea are closed on Monday for a holiday.

Currencies and oil

The US dollar index, which tracks the greenback against a basket of its peers, was at 102.198 following a recent climb from levels below 102.

The Japanese yen traded at 130.63 per dollar, weaker as compared with levels below 128 seen against the greenback last week. The Australian dollar was at $0.7189 after declining from above $0.725 late last week.

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.21% to $119.97 per barrel. US crude futures climbed 0.31% to $119.24 per barrel.

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