Skip to main content
Advertising

Originally published August 20, 2014 at 6:34 AM | Page modified August 21, 2014 at 6:25 AM

  • Share:
           
  • Comments
  • Print

China manufacturing drags on Asia, but Europe up

Asian stock markets were dampened by a weak China manufacturing survey Thursday, but European stocks opened higher. Japan gained on the prospect of a stronger dollar after Fed minutes showed policymakers are leaning toward their first rate hike since the 2008 financial crisis.


AP Business Writer

advertising

SEOUL, South Korea —

Asian stock markets were dampened by a weak China manufacturing survey Thursday, but European stocks opened higher. Japan gained on the prospect of a stronger dollar after Fed minutes showed policymakers are leaning toward their first rate hike since the 2008 financial crisis.

KEEPING SCORE: Britain's FTSE 100 added 0.2 percent to 6,771.49 and Germany's DAX gained 0.4 percent to 9,354.87. France's CAC 40 was up 0.4 percent to 4,259.54. Futures augured more gains on Wall Street. S&P 500 futures rose 0.1 percent and Dow Jones futures added 0.2 percent.

CHINA CHILL: Growth in China's vast manufacturing industry weakened in August, suggesting that the recovery in the world No. 2 economy is losing momentum and Beijing may need to spoon out more stimulus. The preliminary version of HSBC's manufacturing index fell to a three-month low of 50.3 from 51.7 in July, indicating that manufacturing businesses are barely growing.

FED MINUTES: Minutes from the U.S. Federal Reserve's last meeting showed that the majority of Fed policymakers believe the U.S. economy is improving enough for the central bank to act sooner than previously thought to withdraw the extraordinary support it's been providing through ultra-low interest rates. The debate on when the Fed should raise interest rates, which have been near zero since 2008, has intensified in recent months as the Fed winds down its other economic stimulus. The minutes from the July 29-30 meeting revealed a sharp debate within the Fed about how and when to scale back its help for a steadily improving economy.

ASIA'S DAY: Japan's Nikkei 225 rose 0.9 percent to 15,586.20 and Australia's S&P/ASX 200 added 0.1 percent to 5,638.90. South Korea's Kospi sank 1.4 percent to 2,044.21 and Hong Kong's Hang Seng fell 0.7 percent to 24,994.10. China's Shanghai Composite was down 0.4 percent to 2,230.46. Higher interest rates in the U.S. could be a boost for countries such as Japan where giant exporters have much to gain from a strong dollar. But in South Korea, investors were jittery it could prompt foreign investors to sell their stockholdings.

DOLLAR SURGE: Expectations of an end to the Fed's easy monetary policy pushed the U.S. dollar to 103.89 yen from 103.71 yen. The euro, however, reversed its earlier fall, appreciating to $1.3265 from $1.3260 late Wednesday.

THE QUOTE: "It seems consensus that the FOMC minutes were modestly hawkish," said Chris Weston, a chief market strategist at IG, referring to the Fed minutes. "What was interesting though was that while the FOMC minutes put a bid in the USD ... it wasn't enough to derail the equity story," he said of U.S. stock markets.

YELLEN'S SPEECH: On Friday, Fed Chair Janet Yellen will give a speech at an annual conference of central bankers and other policymakers in Jackson Hole, Wyoming. It will be closely watched by markets for clues to her thinking on the timing of interest rate hikes.

ENERGY: Benchmark U.S. crude for October delivery was down 29 cents to $93.16 a barrel in electronic trading on the New York Mercantile Exchange.



Want unlimited access to seattletimes.com? Subscribe now!

Also in Business & Technology

News where, when and how you want it

Email Icon

Want free career advice? And an iPad Mini?

Want free career advice? And an iPad Mini?

Tell us about your goals and challenges and be considered for a future NWjobs career-makeover story, as well as a chance to win an iPad Mini!

Advertising

Advertising

The Seattle Times photographs

Seattle space needle and mountains

Purchase The Seattle Times images


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►