The Hong Kong stock market leads the way in the fall, after stocks point back lower in pre-US trading.
The day started mixed, but development fell early for most of the major stock exchanges in the Asia Pacific region on Tuesday.
For the second day in a row, the Hong Kong Stock Exchange is experiencing the biggest drop.
This is what it looks like around 06.00:
- The Nikkei 225 index in Tokyo fell 0.60 percent
- Hong Kong’s Hang Seng fell 1.37 percent
- Kospi in Seoul decreased by 0.86 percent
- Shanghai Composite decreased by 1.10 percent
- The FTSE Straits Times Index in Singapore rose 0.21%
- The ASX 200 index in Sydney rose slightly 0.10 percent
Supply crisis affecting production
Japan’s manufacturing activity rose at the weakest pace in three months in May, according to the Purchasing Managers’ Index (PMI) from au Jibun Bank. He writes Reuters.
The index fell to the seasonally adjusted level of 53.2. Levels above 50 indicate growth, while levels below 50 indicate a decline.
Production bottlenecks due to parts shortages and the coronavirus shutdown in China are cited as the explanation why purchasing managers are reporting lower production growth.
Toyota also announced that it will reduce production by 100,000 cars worldwide in June to 850,000 cars. The reason, according to the car manufacturer, is the lack of computer chips, Reuters writes.
Pre-trade in the United States down
In the US, there was a strong and broad rally on Wall Street on Monday, after last week’s turmoil. The industry-heavy Dow Jones rose about two percent.
On the other hand, in pre-Wall Street trading, stocks are pointing down again at the time of writing.
After closing time, the Snap chief announced that he expects the company to miss its own targets this quarter. Earnings forecast sent Snap stock directly to the after-sales service. Meta, the owner of Facebook, was also among the stocks that fell in the aftermarket.
Analyst Tina Teng at CMC Markets believes that the US stock futures sale today shows how fragile the market is when it comes to risk taking in light of the global picture.
“Snaps’ lowering of revenue forecasts has led to more concerns about the growth of tech companies while there are macroeconomic challenges,” Teng told Bloomberg.
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