- Japan Nikkei is down 2.94%, Shanghai CSI down 3.94%, HongKong HangSeng down 2.3% midday.
- 2016 Off To A Miserable Start: Asian Stocks Drop; Futures Slide After China PMI Tumbles On Dire Commentary
by Tyler Durden, www.zerohedge.com
Earlier in the session, after the surge in oil prices on fears of a spike in belligerence between Saudi Arabia and Iran, bulls were hopeful that after a poor close to 2015, at least the first trading day of 2016 would set a positive mood: after all, if there is one thing war is good for, it is to lift stock markets. And it did… for about 3 hours.
Then moments ago, Caixin Media and Markit Economics released China’s December manufacturing purchasing managers’ index. It was a doozy, falling to 48.2 from 48.6 in November, well below the 48.9 consensus estimate and even lower than the 49.6 printed a year ago, its tenth consecutive month in contraction territory and the lowest reading since September 2015.
The trend is clearly not one’s friend, especially if one is part of Beijing’s political oligarchy.
As the report noted, there was a renewed contraction of output, with total new work continuing to fall, while new export work declines for first time in three months; finally, companies continued to shed staff as the greatest threat facing China, a massive labor revolt, continues to slowly simmer. The details were quite frankly, stunning, in their negativity: as if Markit wanted to paint China’s economy in the worst way possible: