Asia-Pacific markets traded mixed Tuesday after China’s manufacturing activity in May shrank at the fastest pace since September 2022, according to a private survey. The Caixin/S&P Global manufacturing purchasing managers’ index came in at 48.3, dropping sharply from 50.4 in April, highlighting the impact of prohibitive U.S. tariffs. Hong Kong led gains in the Asia-Pacific region, ending the day 1.53% higher at 23,512.49, while Mainland China’s index gained 0.31% in choppy trade, closing at 3,852.01.
Over in Japan, the benchmark Nikkei 225 ended the day flat at 37,446.81, while the broader Topix index fell 0.22% to 2,771.11. Australia’s benchmark S&P/ASX 200 advanced 0.63% to end the day at 8,466.70. The country’s trade deficit came in at 14.7 billion Australian dollars ($9.53 billion), exceeding the AU$13.1 billion deficit forecast by economists polled by Reuters but was an improvement from the AU$16.3 billion deficit in the previous quarter’s revised reading.
Meanwhile, India’s Nifty 50 benchmark moved down 0.64%, and the BSE Sensex lost 0.88%. South Korean markets were closed for polling day. Shares of Asia-Pacific steelmakers traded mixed ahead of U.S. President Donald Trump’s fresh levies.
Trump announced that tariffs on steel and aluminum exports to the U.S. would double to 50% starting Wednesday. Shares of Chinese state-owned steel manufacturers were down by 1.56%, 0.85%, and 3.51%, respectively, as at 2.46 p.m. Singapore time. Over in Japan, shares were flat, while South Korean steel companies bucked the trend by moving up 0.42%.
Ola Electric shares tumbled as much as 7% on Tuesday after a series of block deals worth 7.31 billion Indian rupees ($85.52 million) took place in the initial minutes of trading. Shares of companies under the Adani Group fell in early trade Tuesday following reports that U.S. prosecutors were investigating whether the companies violated sanctions on Iran.
Asia-Pacific markets end mixed
Shares were down across the group, except for one entity which saw a slight gain of 0.84%. Iron ore prices fell on Tuesday as investors turned cautious on China’s economic outlook after the Caixin PMI index for May shrank at its fastest pace since September 2022. Iron ore futures fell 0.74% to $95.35 a ton.
Other base metals also traded lower, with copper down 0.72% on the London Metal Exchange to $9,547, aluminum moving down 0.87%, and zinc lower by 0.76%. U.S. Commerce Secretary Howard Lutnick expressed optimism about a potential trade deal with India. Speaking at the U.S.-India Strategic Partnership Forum’s Leadership Summit in Washington, Lutnick noted that trade negotiators have “found a place that really works for both countries.”
Several Asia-Pacific currencies weakened Tuesday, as the U.S. dollar index increased by 0.27% to 98.85 following fluctuations in U.S. trade policies.
The Japanese yen weakened 0.29% against the dollar to 143.10. The offshore Chinese yuan was last seen 0.17% weaker at 7.1959. Meanwhile, the Singapore dollar depreciated by 0.15% to 1.2869, and the Thai baht weakened by 0.28% to 32.59.
In contrast, the Malaysian ringgit appreciated by 0.21% to 4.2440. China’s manufacturing activity in May shrank at its fastest pace since September 2022, reinforcing calls for stronger stimulus to support growth in the tariff-hit economy. Spot gold swung between gains and losses on Tuesday, trading at $3,374.16 per ounce as at 9.48 a.m. Singapore time.
The bullion had surged 2.8% on Monday, its biggest daily jump in four weeks, on the back of a weaker dollar and mounting global trade tensions. Australian stocks saw gains, with the 200-stock benchmark rising 0.73% to 8,475.60 as at 11.21 a.m. Australian Eastern Standard Time, its highest level since February 18. Gains were observed mainly in the gold and energy sectors.
