BEIJING, China (AP) – Following Wall Street’s lead, Asian stock markets fell on Wednesday as US services activity slowed. Tokyo, Hong Kong, and Seoul market benchmarks also fell. Shanghai traded in a range of gains and losses. After the Institute of Supply Management announced that service industry activity rose at a slower rate than expected in June, Wall Street’s benchmark S&P 500 index dipped overnight, snapping a seven-day streak of record closes.
According to Mizuho Bank, the “disappointing dip” indicates that the US economic recovery “is not immune” to worldwide pockets of coronavirus comeback.
The Nikkei 225 NIK, -0.96 percent in Tokyo fell 1% to 28,363.82, while the Hang Seng in Hong Kong HSI, -0.94 percent down 1% to 27,771.87. After China’s Cabinet declared it would impose higher data security and other conditions on Chinese companies that want to join global stock markets, the Shanghai Composite Index SHCOMP, +0.68 percent was up 0.3 percent at 3,543.89 by mid-morning. The statement, which comes as Beijing tightens its grip on the technology sector, could be a roadblock for Chinese entrepreneurs who have raised billions of dollars abroad. It comes after Didi Global Inc. DIDI, -19.58 percent was ordered to halt signing up new customers and remove its app from online stores while it improves data security. Seoul’s Kospi 180721, -0.65 percent down 0.6 percent at 3,287.11, while Sydney’s S&P-ASX 200 XJO, +0.90 percent rose 0.7 percent to 7,316.00. New Zealand, Singapore, and Jakarta were among the countries that declined. On Wall Street, the S&P 500 SPX, -0.20 percent fell 0.2 percent to 4,343.54 on Tuesday, with banks and energy stocks leading the way. For the year, the index is up 15.6 percent. The Dow Jones Industrial Average DJIA, -0.60% dropped 0.6 percent to 34,577.37 points. The Nasdaq Composite COMP, +0.17% increased 0.2 percent to 14,663.64 points. On a 100-point scale, scores above 50 indicate activity increasing, the ISM purchasing managers’ index dipped to 60.1 from a high of 64.0 in May. The Wall Street Journal polled forecasters and found that only 63.3 expected. As limitations on consumer behavior in the United States loosen, the travel, hotel, and other service businesses have thrived. This pushed up prices in the United States, but the latest data could back up the Federal Reserve’s claim that the inflation rise is only temporary. This may assuage investors’ fears that the Fed and other central banks will be under pressure to rein in price surges by reducing economic stimulation. Didi’s stock fell 19.6 percent in New York on Tuesday. After Chinese regulators stated they were examining information security at Didi and two other ride-hailing businesses on Friday, the stock dropped 5%. Full Truck Alliance YMM, -6.68 percent, a truck logistics platform operator, fell 6.7 percent, while Kanzhun Ltd. BZ, -15.95 percent, an online recruitment firm, sank 15.9 percent. The Pentagon said it is scrapping a cloud-computing contract with rival Microsoft MSFT, +0.00 percent that could have been worth $10 billion and will instead pursue a deal with both Microsoft and Amazon AMZN, +4.69 percent, sending Amazon’s stock up 4.7 percent. Microsoft’s stock remained relatively unchanged. In oil markets, the New York Mercantile Exchange’s benchmark U.S. crude CL.1, +0.55 percent increased 19 cents to $73.56 per barrel in electronic trading. On Tuesday, the contract dropped $1.79 to $73.37. Brent crude BRN00, +0.47%, the benchmark for international oil pricing, increased 17 cents to $74.72 per barrel in London. It fell $2.63 to $74.53 in the previous session. The dollar fell to 110.60 yen USDJPY, down 0.07 percent from Tuesday’s high of 110.63. From $1.1826 to $1.1824, the euro EURUSD, +0.06% fell by 0.06 percent./n
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