Asian Markets Mixed; Chinese Stocks Rise Despite Disappointing PMI Data

Investing.com - Asian markets were mixed in morning trade on Tuesday. Chinese stocks outperformed their regional peers despite the release of below-forecast PMI data.

The Shanghai Composite and the Shenzhen Component rose 0.5% and 0.7% respectively by 11:04 PM ET (03:04 GMT).

The rise in Chinese stocks came despite data showed the country’s manufacturing sector grew less than expected.

The official Purchasing Managers’ Index (PMI) came in at 50.1 for the month of April, lower than the expected reading of 50.5.

Meanwhile, the official non-manufacturing PMI fell to 54.3 from 54.8 in March. Services account for more than half of China’s economy.

A reading above 50 indicates expansion, while a reading below reflects contraction.

Separately, the Caixin/Markit manufacturing PMI, a private survey that focuses on small and mid-sized firms, came in at 50.2. That compares with the expected 51.0 and 50.8 from last month.

Chinese stocks fell about 5.5% last month after reports suggested regulators are reluctant to add stimulus amid concerns of asset bubbles.

Hong Kong’s Hang Seng fell 0.4%, while South Korea’s KOSPI dropped 1.0%.

Index heavyweight Samsung Electronics (KS:005930) fell 1.1% after the company posted a 60% fall in first-quarter operating profit.

Operating profit was 6.2 trillion won ($5.4 billion) in the January-March quarter, Samsung reported. The loss was mainly due to falls in chip prices and slowing display panel demand, the company noted.

Down under, Australia’s ASX 200 was down 0.6%.

Japan’s Nikkei 225 remains closed for a 10-day holiday.

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