Asian markets dip, after HSBC report

Hong Kong - Asian stocks slipped on Tuesday after an HSBC report showed the performance of China's service sector fell to a record low in July, and despite a positive lead from Wall Street.

The HSBC China services Purchasing Managers' Index in July slipped to 50.0, the dividing line between expansion and contraction, down from 53.1 in June.

"The weakness in the headline number likely reflects the impact of the ongoing property slowdown in many cities, as property-related activity, such as agencies and residential services, see less business," Qu Hongbin, HSBC Chief Economist for China, said in a statement.

Tokyo's Nikkei fell 1.00% to close at 15 320.31, Sydney dropped 22.3 points to finish at 5 518.6, and Seoul shed 0.68% to end at 2 066.26.

Hong Kong closed up 0.20% to 24 648.26, while Shanghai slipped 0.15% to 2 219.95. Shenzhen rose 0.72% to 1 172.76.

Traders also said an overnight recovery in US stocks failed to follow through in Asia.

In the United States, the Dow Jones Industrial Average rose 0.46%, the S&P 500 rose 0.72%, and the Nasdaq Composite Index advanced 0.72% by the close on Monday.

Peter Cardillo, chief market economist at Rockwell Global Capital, said traders were bargain-hunting after sharp losses at the end of July.

Last week, the Dow shed its gains for the year in its worst week since January, and the S&P 500 recorded its biggest weekly decline since mid-2012.

Investors are also looking to see if the Dow's dip was an anomaly, as well as to forthcoming data on factory orders, the trade deficit and jobless claims, which are out later this week.

In currency markets, the euro stayed weak against the dollar in Asia on Tuesday as investors awaited eurozone data and a monthly policy meeting of the European Central Bank (ECB).

The euro bought $1.3420 in Tokyo afternoon trade against $1.3421 in New York late Monday, while buying ¥137.61 against ¥137.64 in US trade.

The dollar slipped to ¥102.49 in Tokyo afternoon trade from ¥102.56 in US trade on Monday.

On oil markets, the US benchmark West Texas Intermediate (WTI) for September delivery rose 10 cents to $98.39, while Brent crude for September gained 15c to $105.56 in afternoon trade.

Gold fetched $1 292.10 an ounce by 12:50 compared with $1 292.80 late on Monday.

In other markets:

- Bangkok rose 0.63% to 1 528.98.

Telecoms company True Corporation soared 8.16% to 10.60 baht, while hospitality firm Minor International gained 4.76% to 33.00 baht.

- Jakarta ended down 0.20% at 5 109.09.

Tin miner Timah gained 2.14% to 1 430 rupiah, while palm oil firm Wilmar Cahaya Indonesia fell 9.72% to 2 275 rupiah.

- Kuala Lumpur shed 0.43% to close at 1 863.34.

Malaysia Airlines System gained 2.17% to close at 0.24 ringgit, Cycle & Carriage Bintang shed 2.53% to end lower at 2.31 ringgit, and Sime Darby closed 0.52% lower on 9.51 ringgit.

- Mumbai advanced 0.72% to end at 25 908.01.

HDIL climbed 8.63% to 100.05 rupees, while Cummins India rose 6.52% to 669.15 rupees.

- Singapore rose 0.28% to 3 327.67.

United Overseas Bank was down 0.61% to Sg$22.80 while oil rig maker Keppel gained 0.83% to Sg$10.89.

- Taipei shed 2.02% to 9 141.44.

Taiwan Semiconductor Manufacturing lost 3.24% to Tw$119.5, while Hon Hai Precision was off 3.32% to Tw$102.0.

- Wellington was up 0.26% at 5 104.16.

Air New Zealand rose 2.40% at NZ$1.92 and Fletcher Building was flat at NZ$8.82.