Chinese stocks were pressured by manufacturing PMI data, while European banks are getting punished by stress test results
Stocks mostly advanced in Asia -- despite some mixed data out of China and
sliding oil prices -- amid waning expectations that the Fed will raise interest rates in September. Japan's Nikkei edged 0.4% higher, though lackluster earnings drove Panasonic 7% lower. South Korea's Kospi tacked on 0.7%, even after the Nikkei manufacturing purchasing managers index (PMI) showed a month-over-month retreat. Meanwhile, Hong Kong's Hang Seng outperformed, jumping 1.1%.
Conversely, China's Shanghai Composite was drilled by a disappointing official manufacturing PMI number -- which indicated a slight contraction in activity last month -- though data out of the services sector suggested continued expansion in July. By day's end, the index was off 0.9%.
European markets are trading in the red, too, after initial gains were wiped out by
stress test results among bank stocks. On the data front, Markit's eurozone manufacturing PMI dropped from the prior month, while U.K. manufacturing activity hit its lowest level since early 2013. At last check, London's FTSE 100 is 0.3% lower, France's CAC 40 has surrendered 0.5%, and the German DAX is 0.02% below breakeven.
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