The positive close on Wall Street only supported Asian markets at the start of the session, when the MSCI Asia Pacific Regional Index was up 0,6%. The index increase is easing towards 0,2% in the early afternoon of the Far East, following the disappointing reading of the Chinese PMI. Of the two indicators – the official one and the HSBC-Markit one – the second, announced today, is based on a more restricted sample than the official index, and the Flash estimate refers to an even more limited number of companies. The index for April stood at 48,3 and, although slightly above the 48 in March, indicates a situation of contraction for Chinese manufacturing (see graph). Markets were also impacted by prices in Australia, which rose less than expected, pointing to potential weak demand and negating the possibility of an upcoming key rate hike, which has duly weakened the Australian dollar.
In China, the government is trying to reconcile continued growth with the need to bring the 'shadow' financial system under control, to alleviate pollution and reduce production overcapacity in various manufacturing sectors.
In the currency field, the euro and the yen are in the range of the last few days, at 1,381 and 102,55 against the dollar. Gold and WTI oil register weak prices, at 1285 $/ounce and 101,4 $/b respectively.
