Service sector growth slowed, Chinese stocks went down

Service sector growth slowed, Chinese stocks went down

Asia-Pacific stocks were mixed in the morning session on January 3 after the news that the service sector of China slowed down in January.

China’s Shanghai Composite Index fell 0.63% in the morning session on February 3. Photo: AFP

Mainland Chinese stocks were tinged in red this morning, with the Shanghai Composite Index falling 0.63% and the Shenzhen Component slipping 0.343%.

On the Hong Kong market, the Hang Seng Index decreased by 0.62%. Notable developments in the Hong Kong market are Alibaba shares falling more than 4% in the morning session of February 3, although the Chinese technology “giant” announced that its cloud services segment was profitable for the first time.

According to the results of a private survey just released, the PMI Caixin / Markit in the service sector reached 52 points, the lowest growth rate in the past 9 months. Previously, this index reached 56.3 points in December 2020. The PMI index above 50 indicates the industry / sector under survey achieved growth in the survey period.

Contrary to Chinese stocks, major stock markets in the Asia-Pacific region flourished. In Japan, the Nikkei 225 index edged up 0.66% while the Topix index rose 0.8%. The Korean stock market this morning was still in green with the Kospi index inched slightly by 0.27%.

Australian stocks this morning increased strongly, with the S & P / ASX 200 index up 1.13%. Overall, the MSCI Asia-Pacific (excluding Japan) rose 0.44%.

US stocks last night continued to accelerate. The Dow Jones industrial average soared 475.57 points to close at 30,687.48 – the highest level since November 2020. Meanwhile, the S&P 500 index ended with 3,826.31 points, up 1.4 percent, while the Nasdaq Composite jumped 1.6 percent and closed the session with 13,612.78 points.

On the money market, the US dollar index against other major currencies rose to 91,025, from 90.8 set at the beginning of the week. Japanese Yen depreciated and converted 104.94 JPY / USD, compared to 104 AUD / USD set last week, while Australian dollar also weakened and changed hands 1 AUD / 0.761 USD, from 1 AUD / 0.762 USD set yesterday.

Oil prices on the Asian market this morning went up, with Brent crude oil futures inching up 0.23% to 57.59 USD / barrel, while US crude futures rose 0.27% to 54.91 USD. /bin.

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