Asian indexes were mixed in early Thursday trade after Chinese manufacturing and services PMIs showed positive signs. China’s official manufacturing PMI rose to 51.7 in August, surpassing the forecast for 51.3, while the country’s official services PMI dropped to 53.4 this month, compared with 54.5 in July.
Japan’s Nikkei 225 index was up 0.80 percent as of 7:43 a.m. GMT and Australia’s ASX 200 was up 0.72. The Shanghai Composite was down 0.41 percent as was South Korea’s Kospi, which receded 0.37 percent by midday in Asia. Wall Street had another positive day on Wednesday after data showed the U.S. economy grew at an upwardly revised 3 percent annualized pace in the second quarter, largely due to increased consumer spending and additional business investments. Private-sector employers in the United States hired 237,000 workers in August, the biggest monthly increase in five months, a positive sign for the economy and a hint for a solid non-farm payroll report tomorrow.
Currency Movements
The dollar remained stable against a basket of trading partners, with the dollar index trading up 0.15 percent to 92.99 .DXY. The euro was down slightly against the dollar, trading at $1.1872 before the London open. The dollar was up 0.25 percent against the yen as well, trading at 110.50, a slight dip from the high of 110.60 reached earlier in the trading session.
Traders are still looking towards the U.S. for new information about President Trump’s proposed tax reforms which he has promised will stimulate the economy even further and create more jobs. They are also keeping an eye on Trump’s comments regarding North Korea after Trump criticized the potential for dialogue as a way to resolve the conflict.