Chinese metals producers including Jiangxi Copper Co. and Aluminum Corp. of China Ltd. declined as Glencore Plc’s stock in Hong Kong followed its London shares to a record low. China’s volatility index, a gauge of investor fears, has dropped to 40 percent from an August peak of 64 percent. Premier Li Keqiang’s expansion target of about 7 percent for this year is being challenged by a slowdown in manufacturing and property investment even after five interest-rate cuts since November.
New Zealand’s currency weakened 0.5 percent with South Africa’s rand.
Taiwan’s weighted index deepened losses to hit its lowest level in two weeks, on the back of heightened China-related jitters and as nervous investors eyed the country’s central bank meeting.
In its latest forecast released on Tuesday, the Asian Development Bank said it expected China’s economy to grow 6.8 percent this year and weigh on other economic prospects.
It was a broad-based slump in Sydney on Wednesday.
The USA decision last week not to raise rates immediately only boosted stock markets for a short time. Indonesia’s rupiah also plumbed fresh 17-year lows, sliding 1 percent to 14,648 to the greenback. Prices have decreased 13 percent this year.
“The markets were also hit by China’s PMI data released today, which doesn’t look good”.
The MSCI Asia Pacific excluding Japan Index added 0.3 per cent by 1:26 p.m.in Hong Kong, with markets in Japan shut through Wednesday because of holidays.
Shares of Kia Motors (Korea Stock Exchange: 27-KR) and automotive parts supplier Hyundai Mobis declined 3 and 2.1 percent respectively, but logistics company Hyundai Glovis erased early losses to notch up 0.8 percent.
Markets in Southeast Asia largely fell more than 1 percent each, with the exception of Thailand and Vietnam whose benchmark indexes edged down 0.6 and 0.3 percent respectively.
In response to the weak data print the Australian dollar has tumbled close to 1%, and was trading at.7039 against its United States counterpart.