Global Economy

Asia stocks trade lower as US considers curbs on investments in China; Budweiser IPO launch ahead


Asia stocks traded lower Monday morning as investors await the release of the China Purchasing Managers’ Index expected later today.

In Japan, the Nikkei 225 slipped 0.36% as shares of index heavyweight and conglomerate Softbank Group plunged 2.99%. The Topix also shed 0.54%.

South Korea’s Kospi also declined 0.14%. Australia’s S&P/ASX 200 traded largely flat as the sectors were mixed.

Overall, the MSCI-Asia ex-Japan traded 0.1% lower.

Developments on the U.S.-China trade front will also be monitored. The White House is considering curbs on U.S. investments in China, according to a CNBC source. That included the possibility of blocking all American investments in Chinese companies, the source said.

Beijing’s top trade negotiator, Liu He, is expected to lead his country’s delegation to the United States one week after China’s National Holiday.

Meanwhile, investors await the release of the official Chinese manufacturing Purchasing Managers’ Index (PMI), expected to be out at around 9:00 a.m. HK/SIN. The Caixin/Markit factory PMI is also set to be out at 9:45 a.m. HK/SIN. That could offer clues on the impact of the ongoing trade war between Beijing and Washington on China.

Anheuser-Busch InBev‘s Budweiser APAC listing is expected to make its public debut in Hong Kong on Monday, against the backdrop of protests that have lasted for months in the city. The IPO is the second largest of 2019, with shares priced last week at the low end of the expected range.

Asia-Pacific Market Indexes Chart

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.10 after bouncing from levels below 98.4 last week.

The Japanese yen traded at 107.94 after weakening from levels below 107.2 in the previous trading week. The Australian dollar changed hands at $0.6764 after slipping from levels above $0.678 last week.

Oil prices were up in the morning of Asian trading hours, with international benchmark Brent crude futures gaining 0.34% to $62.12 per barrel and U.S. crude futures adding 0.32% to $56.09 per barrel.

What’s on tap:

  • China: Official Purchasing Managers’ Index at 9:00 a.m. HK/SIN, Caixin/Markit factory Purchasing Managers’ Index at 9:45 a.m. HK/SIN
  • Australia: Private credit data for August at 9:30 a.m. HK/SIN
  • Hong Kong: Budweiser APAC IPO

— CNBC’s Eamon Javers, Yun Li and Evelyn Cheng contributed to this report.



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