Chinese markets drop from recent peaks, Asian stocks mixed

Nikkei 225 gained 0.5%, the TOPIX index advanced 0.7%, KOSPI added 0.9%, Straits Times index added 0.4%, Shanghai Shenzhen CSI 300 and Shanghai Composite indexes dipped 0.9% and 0.8%, respectively, while Hang Seng index shed 0.7%

Asian stocks were mixed on Tuesday as Chinese markets dropped from recent peaks after mixed data for August.

Nikkei 225 gained 0.5%, while the TOPIX index advanced 0.7%.

KOSPI was the best performer in Asia, adding 0.9% after Consumer Price Index (CPI) inflation data came softer than expected for August, opening the door for more rate cuts by the Bank of Korea.

Straits Times index added 0.4%, while Australian shares declined on weak data.

Shanghai Shenzhen CSI 300 and Shanghai Composite indexes dipped 0.9% and 0.8%, respectively. Both indexes traded below multi-year highs reached last week, and also appeared to be due for some consolidation after a stellar performance through August.

Hang Seng index shed 0.7%.

Weak Purchasing Managers Index (PMI) figures for August, released over the past two days, dampened optimism towards Chinese markets, keeping them rangebound since Monday.

PMI data showed a bigger-than-expected drop in manufacturing activity.

The figures highlighted some falling off in Chinese business activity as support from Beijing ran dry, which could in turn herald more weakness in the world’s second-biggest economy. But sustained economic weakness is expected to attract even more stimulus measures from Beijing.

Hong Kong and Chinese chipmaking stocks were the worst performers on Tuesday, as they faced some profit-taking after bets on more Chinese advancement for AI boosted the sector in August.

AI chipmaker Cambricon Technologies Corp Ltd clocked wild swings on Tuesday, while Hong Kong-listed Semiconductor Manufacturing International Corp and Hua Hong Semiconductor Ltd slipped around 6% apiece.

ASX 200 shed 0.3% on Tuesday, weighed by softer-than-expected net exports contribution data for the second quarter.

Nifty 50 index opened 0.2% higher on Tuesday.