Asian markets in red, trailing global markets as disappointing earnings reports weigh on

Stocks in the Asia-Pacific region fell on Wednesday as investors assessed July business activity data from Japan and Australia and watched U.S. stock futures fall after disappointing quarterly results from large-cap technology stocks.

Japan (NKY:IND) -1.11%. Reference points reached their lowest levels in almost a month as investors reacted to the latest data on business activity. Data showed that services activity in Japan expanded at the fastest pace in three months, while manufacturing activity unexpectedly contracted.

China (SHCOMP) -0.50%It fell to a five-month low as China’s latest stimulus efforts failed to allay market concerns about the economy.

Investors are now looking to the latest manufacturing and services sector data due next week for more insight into the economy.

Hong Kong (HSI) -1.13%.

India (SENSEX) -0.72%. It is pulling back for the fourth straight month as traders continue to analyze the impact of tax increases on short-term and long-term capital gains on financial instruments.

The HSBC India Manufacturing PMI rose to 58.5 in July 2023 from 58.3 in the previous month, indicating a historically significant improvement in the sector’s health, according to preliminary estimates. The HSBC India Services PMI rose to 61.1 in July 2024 from 60.5 in June, the preliminary estimate showed.

Australia (AS51) -0.09%. The index pared gains from the previous session as weak business activity data dampened investor sentiment. Data showed private sector activity in Australia expanded at a slower pace in July as growth in the services sector weakened while manufacturing activity remained subdued.

Malaysia’s annual inflation rate unexpectedly stood at 2.0% in June 2024, below market expectations of 2.2% and remaining stable for the second consecutive month.

In the U.S., all three major indexes ended lower on Tuesday as investors assessed mixed earnings reports while monitoring developments in the U.S. presidential race.

U.S. stock futures fell sharply Wednesday after disappointing quarterly results from large-cap tech companies Tesla and Alphabet: Dow -0.35%;S&P500 -0.65%;Nasdaq -1.03%.

In the coming week: Traders are gearing up for key U.S. economic data this week while also monitoring the latest political developments in the U.S. Wednesday will see the release of preliminary July PMI data, followed by the second-quarter GDP reading on Thursday and the latest PCE price index report on Friday.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

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