Stocks in Asia took a hit today on fresh concerns about China's economy, after data confirmed an ongoing contraction in the country's manufacturing sector. The preliminary Caixin China manufacturing purchasing managers index (PMI) missed expectations, falling to 47.0 -- its lowest reading since early 2009. The Shanghai Composite slipped 2.2% as a result, while Hong Kong's Hang Seng closed 2.3% lower. Brokerages were among the top laggards, with Citic Securities facing front-running allegations from the Chinese government.
In South Korea, the Kospi dipped 1.9%, with automakers erasing the prior session's big gains amid the Volkswagen emission scandal. Markets in Japan remain closed for holiday.
Elsewhere, European bourses are turning a blind eye to China's weakness, with stocks recovering from yesterday's sell-off. Even Volkswagen has turned higher after giving up roughly 30% of its market value in the past two days, with the beaten-down automaker shrugging off a fresh round of brokerage downgrades. London's FTSE 100 was up 1.6% at last check, while Germany's DAX has added 0.8%, and France's CAC 40 is up 0.6%.
