Asia-Pacific Market Indexes Chart
New tariffs
U.S. tariffs went into effect Sunday on $112 billion of Chinese imports, while Beijing also began imposing retaliatory tariffs on some of the U.S. goods on its $75 billion target list.
U.S. President Donald Trump said Sunday that trade negotiations with China are still planned for September.
It seems almost impossible to think ” Beijing and Washington are “going to settle everything with one big bang” at the upcoming trade talks in September, Richard Harris, chief executive at Port Shelter Investment Management, told CNBC’s “Squawk Box” on Monday.
“I don’t really expect an awful lot coming from them,” he said. “I think the best markets can hope for is that there’s nothing worse and there’s no big bust up.”
Chinese manufacturing data
A private survey on China’s manufacturing sector showed factory activity unexpectedly grew in August.
The Caixin/Markit Manufacturing Purchasing Managers’ Index for August was at 50.4, better than expectations of 49.8 by economists in a Reuters poll. The 50 level separates expansion and contraction, with PMI readings above that number signalling growth and vice versa.
However, official data showed over the weekend showed factory activity in China shrinking for the fourth month in a row in August.
China’s State Council also announced more measures to support its economy on Sunday. In the statement, originally posted in Mandarin, it said that it attached “great importance” to the development of sectors such as infrastructure, high-tech, and the transformation of traditional industries.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.813 after rising from levels below 97.8 last week.
The Japanese yen changed hands at 106.17 against the dollar after weakening from levels below 105 in the previous trading week. The Australian dollar was at $0.6727 after slipping from highs above $0.676 last week.
Oil prices declined in the morning of Asian trading hours, with international benchmark Brent crude futures slipped 0.61% to $58.89 per barrel and U.S. crude futures declining 0.25% to $54.96 per barrel.
What’s on tap:
- Indonesia: Inflation data at 12:00 p.m. HK/SIN
— Reuters and CNBC’s Spencer Kimball contributed to this report.
