Stocks in the Asia Pacific open vary in trading this Friday morning (7/31) because the United States (US) has now officially entered the abyss recession. Mainland China shares for example, opened higher this morning with the Shanghai composite up around 1% while the Shenzhen component gained 1.45%.
Quoted from CNBC, China’s Purchasing Managers’ Index (PMI) on Friday is still above expectations. Data shows China’s manufacturing PMI of 51.1, up from June’s 50.9 and above expectations of 50.7.
Meanwhile, the Hang Seng index in Hong Kong also rose 0.73%. Kospi in South Korea edged up 0.2%.
Whereas in Japan, the Nikkei 225 was down 1.32%, the Topix index was down 1.38%. Australia’s S & P / ASX 200 also fell 1.42%. That way, the overall MSCI Asia ex-Japan index traded 0.46% higher.
Singapore, Malaysia and Indonesia capital markets are closed this Friday because they are both commemorating national holidays namely Eid al-Adha.
To note, the US is now officially experiencing recession. Based on data released by the US government, US GDP showed a decrease of 32.9% in the second quarter of 2020. The decline is the worst ever. The most similar decline ever stuck in mid-1921 ago.
However, the data is not as bad as feared, before, economists surveyed by Dow Jones even predicted a deeper decline of 34.7%.
This condition is exacerbated by rising US weekly jobless claims, this time it has broken to 1.44 million people according to US Labor Department data.
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(DNA / DNA)