Shares in Asia fluctuated as investors digested the latest batch of economic reports from China, while Treasuries extended Wednesday’s gains in a sign of growing anticipation that the Federal Reserve is nearing the end of its tightening cycle. Equity benchmarks for mainland China and Hong Kong fell after manufacturing activity in China contracted again, albeit less than feared, while the services PMI showed slowing expansion.
The S&P 500 is still heading for the worst month since February, while the Nasdaq 100 is set for the largest decline this year. Asian and global stocks are also on pace for the biggest monthly losses since February. Treasury yields inched lower after small declines Wednesday, helped by the weaker-than-expected data. US gross domestic product rose at a 2.1% annualized pace in the second quarter, lower than the government’s previous estimate.