China Market Opens Lower, Falls to Continue

China Market Opens Lower, Falls to Continue

The markets will look to the revised July Caixin China manufacturing activity index due at 0145 GMT (09:45 p.m. EDT) for further incentive. The preliminary purchasing manager’s index (PMI) reading had shown that China’s factory sector contracted by the most in 15 months.

China major stock indexes opened down on Monday.

The CSI300 index fell 1.2 percent to 3,772.53 points at 1:36 GMT, while the Shanghai Composite Index lost 1.4 percent to 3,612.93 points.

China CSI300 stock index futures for August fell 1.0 percent, to 3,623.2, -149.33 points below the current value of the underlying index.

The Hang Seng index in Hong Kong was down 1.6 percent, to 24,251.35 points.

The weak wage growth data drove U.S. Treasury yields lower to hurt the dollar. The benchmark 10-year U.S. note yield US10YT=RR fell six basis points on Friday to a three-week low.

The dollar’s pullback helped its Australian peer bounce above 73 U.S. cents AUD=D4 and off a six-year trough of $0.7234 plumbed on Friday.

In commodities, crude oil continued to flounder after posting its biggest monthly drop since 2008 in July on China’s stock market slump and signs that top Middle East producers were pumping out crude at record levels.

U.S. crude CLc1 was down 0.7 percent at $46.81 a barrel after losing 21 percent in July.

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