Markets in Asia mixed; PMIs on the watch

Asian equity markets were mostly mixed on Tuesday, as some indexes corrected lower following previous session gains despite an improved market sentiment.

Tokyo’s Nikkei 225 closed 0.27 percent into green territory at 22,537.50 points, supported by names from the technology and insurance sectors. The broader Topix, on the other hand, settled 0.02 percent higher at 1,774.96 points, with mining and oil-related stocks pushing to the downside.

In Seoul, the Kospi benchmark was up 0.25 percent, dragged by losses among automakers and banking names. Technology heavyweights were also not supportive, with Samsung Electronics and SK Hynix easing more than half a percent in the session.

In mainland China, the Shanghai composite rose 0.75 percent, while the Shenzhen ended with 1.78 percent gain. The Hang Seng Index was up 0.08 percent by the time of this writing.

On the data front, China’s Caixin services PMI for May came in line with analysts’ expectations for a 52.9 points reading, equal to the previous month.

Sydney’s ASX 200 eased 0.51 percent, with mining and oil industries weighing on the index.

These days are quite empty in terms of major economic news, but traders will keep an eye on the upcoming G-7 summit in Canada scheduled later this week.

Investors are worried about recent commercial developments between the United States and its key allies (the European Union, Canada and Mexico). The Trump administration has announced a series of tariffs on steel and aluminium imports from the mentioned nations.

Economic calendar:

Europe: Germany, the Eurozone and the United Kingdom will present their services PMIs for May at 07:55 GMT, 08:00 GMT and 08:30 GMT, respectively. Attention will also be directed at EU’s retail sales for April at 09:00 GMT.

United States: Markit Economics and the Institute for Supply Management will unveil their services (also non-manufacturing) PMIs for May at 14:00 GMT. JOLTs job openings for April will be out by the same hour.

To check the full economic calendar for this week, click here.

FortFS