Asian stocks fall after survey shows weakest China services activity this year

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Asian stock markets sank Wednesday after a survey showed Chinese industrial activity weakening.

Shanghai, Tokyo, Hong Kong and Sydney retreated. Oil prices were mixed.U.S. markets were closed Tuesday for a holiday.

An index of service industry activity by a leading Chinese business magazine, Caixin, weakened sharply in June, adding to signs China’s recovery following the end of anti-virus controls on business and travel is cooling. Growth in factory activity also slowed. The Shanghai Composite Index SHCOMP fell 0.6% to 3,224.53 and the Hang Seng HSI in Hong Kong sank 1.3% to 19,153.53.

Tokyo’s Nikkei 225 NIK lost 0.4% to 33,303.00 and the Kospi 180721 in Seoul retreated 0.4% to 2,585.16.China is the biggest trading partner for all of its Asian neighbors. Demand for imports got a boost when retailing and factory activity revived, but that rebound cooled faster than expected.

 

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