Asian markets began the week by adding losses on the back of a disappointing economic data from the Chinese government and HSBC. The Nikkei index was the worst performer among Asian indices which plunged nearly 3.72% in an overnight session. The index is firmly below the 14000 level and closed at 13,262. The Nikkei has plunged 3 times more than 400 points since May 23, and it closed in a negative territory in the Month of May after a gain of the previous nine months.
The Hang Seng index was the second worst index which tumbled by 0.49% after the economic data release. The HSBC final manufacturing PMI data came in at 49.2 while the forecast was 49.6 which disappointed investors. The data also showed that the country’s medium size business is growing at a much lower rate. The shares of Fast Retailing Co and Fuji Heavy industries Ltd both tumbled by 6.35 and 4.2% respectively. Sharp Corp was also among the heavy losers which skidded by almost 10.3%
Back in Europe, most European markets are trading sharply lower on Monday during the early hours of trading. Stocks in U.K are almost trading towards their four weeks low and the FTSE 100 is down by nearly -0.55%. The DAX index is the worst performer so far during the session which is down by -0.85% and CAC40 is also lower by 0.70%.
French car makers are taking the heat from heavy selling after the economic data showed that the French automobile registration of new passengers dropped by 10% for the month of May. Resource firms are also trading lower because of the slowdown in the Chinese PMI data and the shares of the Royal Dutch Shell PLC and BP PLC are both trading lower with a loss of -0.9% and -0.7% respectively.