Asian markets trade lower after US GDP contraction; Nikkei 225 slips 2%

Mainland Chinese stocks erased early gains and currently trading lower, with the Shanghai Composite slipped marginally.

Jul 31, 2020 10:07 IST India Infoline News Service

Asian stock markets were mostly trading lower on Friday’s trade following a record contraction in US gross domestic in the second quarter. China’s official manufacturing Purchasing Managers’ Index for July at 51.1, according to the country’s National Bureau of Statistics.

Mainland Chinese stocks erased early gains and currently trading lower, with the Shanghai Composite slipped marginally.

The Hang Seng index in Hong Kong advanced 0.22%, the Nikkei 225 fell 2%, the Topix index shed 1.38% and the Kospi in South Korea also down over 0.19%. Australia’s S&P/ASX 200 declined by 1.42%.

The markets in Singapore, Indonesia and Malaysia are closed on Friday in observance of Eid al-Adha.

On Wall Street, stocks closed mixed on Thursday after a Commerce Department report showing a record contraction in US economic activity in the second quarter. The report said real GDP plummeted at an annual rate of 32.9% in the second quarter following a 5.0% slump in the first quarter. The Nasdaq rose 44.87 points or 0.4% to 10,587.81, the Dow slid 225.92 points or 0.9% to 26,313.65 and the S&P 500 fell 12.22 points or 0.4% to 3,246.22.

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