Asian stocks lower as China markets tumble

Asian stock markets were down today (July 27th) after official data showed China's industrial profits declined 0.3 per cent year-on-year in June, compared with a 0.6 per cent rise in May and 2.6 per cent gain in April.

This data comes after the preliminary China Caixin purchasing managers index (PMI), a manufacturing index based on a survey of factory purchasing managers, surprised markets by dropping to a 15-month low in July.

China stocks suffered their sharpest daily percentage decline since 2007, with the Shanghai Composite Index ending down 8.5 per cent at 3725.56.

Investors sold commodities such as oil, iron ore, copper and gold in anticipation for sluggish demand for such resources.

Investors were also concerned by the likelihood of an imminent interest rate hike by the US Federal Reserve, ahead of a policy meeting later this week.

Japan's Nikkei 225 slid 0.9 per cent to 20,350.10, South Korea's Kospi edged down 0.3 per cent to 2,040.29 and Hong Kong's Hang Seng tumbled 3.1 per cent to 24,351.96. Australia's S&P/ASX 200 edged up 0.4 per cent to 5,589.89.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.