Asia Pacific Shares Fall After Survey Reveals Manufacturing Activity Contracted In July

Asia Pacific shares fall after survey reveals manufacturing activity contracted in July.  Chinese shares dropped Thursday as a private data showed manufacturing activity contracted.

The Shanghai composite declined 0.78%, the Shenzhen component shed 0.62%, and the Shenzhen composite fell 0.549%.

In Hong Kong, Hang Seng index slipped 0.68% after shares of HSBC fell 0.39%.

South Korea’s benchmark Kospi enters the negative territory and dropped fractionally. Stocks of chipmaker SK Hynix rose 1.3% and Samsung Electronics dropped 0.33%.

According to July’s trade data, South Korean exports slipped 11% on-year, while analysts had expected an 11.3% drop. Reuters revealed that semiconductor exports declined 28.1% and imports slid 2.7%, while analysts had expected an 8.1% drop.

The survey came amid an existing trade war between Seoul and Tokyo.

Over in Japan, Nikkei 225 was flat and the Topix index jumped 0.1%. In Australia, S&P/ASX 200 declined 0.19%. The MSCI Asia ex-Japan index also dropped 0.67%.

The official data reported that Chinese factory activity contracted for the third straight month in July.

The White House announced Wednesday that both the United States and China considered efficient and constructive in-depth exchanges. The discussion between them included topics such as intellectual property rights, services, non-tariff barriers, agriculture, and forced technology transfer.

The Dow finished it’s trading day 333.75 points down at 26,864.27 and the S&P 500 was also down 1.1% to finish at 2,980.38. The Nasdaq Composite dropped 1.2% at 8,175.42.

Oil prices slipped Thursday afternoon, with the international benchmark Brent crude futures contract dropping 1.05% to $64.36 per barrel. U.S. crude futures also fell 1.21% to $57.87 per barrel.