Losses in Chinese shares dragged down Asia’s equities as investors assessed whether the nation’s reopening story still has room to run amid economic and geopolitical headwinds.
The Shanghai Shenzhen CSI 300 Index fell for a fifth day, while the Hang Seng China Enterprises Index headed for its lowest close in five weeks.
Traders cite geopolitical tensions such as the US plans last week to limit investments in key parts of China’s economy, while Chinese President Xi Jinping and other top leaders have highlighted risks the economy still faces.
Some better-than-expected Chinese data in recent days hasn’t been enough to bolster sentiment.
“People question the accuracy of the macro data, as bottom-up corporate earnings and guidance remain soft,” Bank of America Corp. strategists including Winnie Wu wrote in a research note.
“We expect the debate on the bull/bear case to continue, and market may only get more clarity by June/July.”
US equity futures declined after the S&P 500 closed just 0.1% higher on Monday and the tech-heavy Nasdaq 100 slipped 0.2%. That extended to seven the number of trading days when the two indexes have both moved less than 1%. Australia’s financial markets are shut for a holiday.-Bloomberg
