Asian shares stumble after disappointing Chinese manufacturing data
Equities fall as Chinese manufacturing numbers are lower than expected, highlighting the weakness in the world’s second-largest economy
Shanghai — Shares in Asia fell on Tuesday as readings on China's manufacturing activity failed to meet expectations, underscoring weakness in the world's second-largest economy despite Beijing's attempts to spur growth. Both official and private business surveys pointed to slower Chinese factory growth in April, dashing hopes for a steady reading or even a faster expansion. Data also showed a slower expansion in its services sector, adding to economic uncertainty. The dollar-denominated MSCI index of Chinese shares dropped 0.8%. But Chinese blue chips in Shanghai and Shenzhen kept losses in check, losing less than 0.1% as investors maintained hopes for further measures to prop up the economy. The weak manufacturing numbers suggest “stimulus is there to stay”, said Frances Cheung, head of macro strategy for Asia at Westpac. Upbeat data for March had prompted some analysts to scale back expectations of additional support measures. MSCI’s broadest gauge of Asia-Pacific shares outsid...
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