Most equity markets in emerging Asia fell with Philippine stocks leading the losses, as weaker-than-expected Chinese factory indicators and concerns about Beijing’s clampdown on internet companies weighed on sentiment.
Data from the national Bureau of Statistics (NBS) in China showed the official manufacturing purchasing managers’ index (PMI) fell to 51.1 in April from 51.9 in March.
The country’s financial regulator ordered 13 internet platforms to strengthen compliance as part of the country’s ongoing antitrust clampdown on the sector, worrying investors within and outside the country.
“Asian markets are likely reacting to disappointment in China’s NBS PMIs as well as restrictions imposed by regulators on China’s big tech companies,” said MitulKotecha, Chief EM Asia and Europe strategist at TD Securities
Investors and analysts were also concerned due to the surge in COVID-19 cases across the region. Malaysia reported 3,332 new positive cases on Thursday, its highest in two months.
“Recent covid resurgence in the region, including Singapore, Malaysia, serves as a reminder that we are not out of pandemic and sustained rise in infection could bring about fresh restrictions,” said Christopher Wong, Senior FX Strategist at Malayan Banking Berhad.
The Philippines benchmark slumped 1.8 percent and eyed its worst session in six weeks, tracking broader weakness in the region, while foreign selling and extended lockdowns drove stocks lower.
“PHL markets dipped further weighed by consecutive days of net foreign selling as investors remain to be anxious about the protracted partial lockdowns currently implemented in the national capital region and surrounding provinces,” said Nicholas Mapa, Senior Economist in the Philippines at ING.
Although stocks in India were trading lower and were set to snap a four-day winning streak, they were on course to mark their best week in 13, boosted by quarterly earnings, even as coronavirus infections rage across the country.
Markets in Taiwan were closed for a public holiday.
