US economy fears drag HK and regional markets lower
The Hang Seng Index lost 75 points, or 0.31 percent, to open on Monday at 24,431. File photo: RTHK
Asian share markets followed Wall Street lower on Monday as fears for the US economy returned with a vengeance, spurring investors to price in an almost certain rate cut for September and undermining the dollar.
In Hong Kong, the benchmark Hang Seng Index lost 75 points, or 0.31 percent, at begin the trading week at 24,431.
Over on the mainland, the benchmark Shanghai Composite Index was down 0.36 percent to open at 3,547 while the Shenzhen Component Index opened 0.53 percent lower at 10,932.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 0.66 percent to open at 2,307.
Some early resilience in US stock futures and a continued retreat in oil prices did help limit the losses, but the bleak message from the July payrolls report in the world's biggest economy was hard to ignore.
Not only had revisions meant payrolls were 290,000 below where investors had thought they would be, but the three-month average slowed to just 35,000 from 231,000 at the start of the year.
"The report brings payroll growth closer in line with big data indicators of job gains and the broader growth dataset, both of which have slowed significantly in recent months," noted analysts at Goldman Sachs.
"Taken together, the economic data confirm our view that the US economy is growing at a below-potential pace."
Neither did the reaction of President Donald Trump instil confidence, as the firing of the head of Labor Statistics threatened to undermine confidence in US economic data.
Likewise, news that Trump would get to fill a governorship position at the Federal Reserve early added to worries about the politicisation of interest rate policy.
The Nikkei 225 was down 2.07 percent at 39,930 while South Korea dipped 0.2 percent. (Reuters/Xinhua)
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