Manufacturing Activity, Presidential Debate, and Investors

It was a tough day for the Asia-Pacific markets. Interestingly, markets were mixed on the last day of September, as investors reacted to the release of China’s manufacturing activity data for September. Another factor was the first U.S. presidential debate.

The Shanghai Composite fell 0.2% to about 3’218.05. At the same time, the Shenzhen Component slightly rose to around 12’907.45.

Hong Kong’s Hang Seng index added about 1% as of its final hour of trading. Hong Kong-listed shares of China Evergrande Group jumped around 16% after the firm announced agreements with investors of its unit, Hengda Real Estate.

Also, Japanese stocks fell on September 30. The Nikkei 225 dropped 1.5% to close at 23’185.12. In the meantime, the Topix index declined 1.97% to finish its trading day at 1’625.49.

Australia’s S&P/ASX 200 fell 2.29% to close at 5’815.90. 

Interestingly, markets in South Korea were closed on Wednesday for a holiday.

Investors and Chinese economic data

Investors are closely monitoring the information that comes from China. It makes sense as the world’s second-largest economy continues to recover from the economic downturn caused by the coronavirus. 

Based on the information provided by the country’s National Bureau of Statistics, China’s official manufacturing Purchasing Managers’ Index (PMI) came in at 51.5. The official manufacturing PMI surpassed expectations. 

Interestingly, a private manufacturing survey also showed manufacturing activity expanding in September. The Caixin/Markit PMI came in at 53.0. 

Investors also monitored shares of Japanese telecommunications firms. Notably, Nippon Telegraph and Telephone Corporation plans to take over its telecommunications unit, NTT Docomo.

Notably, shares of NTT dropped 3.61% on Wednesday. However, shares of NTT Docomo jumped 20.92%. 

The first U.S. presidential debate between incumbent President Donald Trump and Democratic nominee Joe Biden could also have affected investor sentiment. It is not surprising as investors are monitoring the political climate in the country.