SYDNEY: Asian share markets were in a cautious mood on Thursday (Sep 2) as concerns grew over the Chinese economy after a run of soft data, while the risk of a sub par US payrolls report kept the dollar on the defensive.
A raft of manufacturing surveys suggested supply bottlenecks were tightening again with eight of nine Asian countries reporting longer delivery times.
“The spread of the Delta variant amid still-low vaccination rates in many ASEAN economies and China’s zero-tolerance COVID-19 strategy has prompted governments to impose restrictions and order factory/port closures,” warned analysts at Nomura.
“Input shortages and low inventories will likely lead to production cuts and delayed shipments in Q3.”
The uncertainty kept Chinese blue chips flat, though speculation of more fiscal stimulus offered some support.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent to a five-week high, helped by buying for the new quarter. Japan’s Nikkei added 0.1 per cent, while South Korea fell 0.6 per cent.