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Asia markets mixed as oil gains after aborted Russian mercenary rebellion

Lim Hui Jie

This is CNBC's live blog covering Asia-Pacific markets.

A general view showing the Hong Kong Skyline on October 13, 2022 in Hong Kong, China.
Nurphoto | Nurphoto | Getty Images

Asia-Pacific markets started the final week of June mixed, even as U.S. markets snapped a multi-week winning streak Friday.

In an early Monday note, CMC Markets analyst Tina Teng, wrote that "economic concerns took central stage again as recession fears mounted, with spiking rates in both Europe and the US rattling global markets."

Over the weekend, Europe also saw a brief rebellion by the Wagner private military group in Russia, pushing oil prices up on Monday.

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Hong Kong's Hang Seng index extended last week's losses to fall 0.4%. Mainland Chinese stocks also fell on its return from a two-day holiday, with the Shanghai Composite closing down 1.48% at 3,150.62 in a fourth-straight daily loss.

The Shenzhen Component recorded the biggest loss among Asia-Pacific indexes on Monday, ending 1.69% lower at 10,872.3.

In Japan, the Nikkei 225 reversed earlier gains to close down 0.25% at 32,698.81 in a third-straight daily loss, while the Topix ended down 0.20% at 2,260.

In Australia, the S&P/ASX 200 fell 0.29% and ended at 7,078.7, dragged by energy stocks and marking its fourth straight day of losses.

South Korea's Kospi bucked the wider sell off, climbing 0.47% to close at 2,582.2, while the Kosdaq finished up 0.53% at 879.5.


All three major U.S. indexes slid in Friday's trading session, with the Dow Jones Industrial Average falling 0.65%, while the S&P 500 dropped 0.77% and the Nasdaq Composite closed lower by 1.01%.

— CNBC's Sarah Min and Samantha Subin contributed to this report

Singapore manufacturing slides at fastest pace in more than a decade

Singapore's manufacturing output decreased 10.8% in May 2023 from a year earlier, its fastest rate of decline since February 2013.

Excluding biomedical manufacturing, output fell 13% compared to the same period last year.

On a seasonally adjusted month-on-month basis, manufacturing output decreased 3.9% in May, and if biomedical manufacturing was excluded, output decreased 8% month-on-month.

— Lim Hui Jie

Mainland Chinese markets lead losses in Asia, CSI 300 down 1.5%

Mainland Chinese markets were the biggest losers in Asia on Monday, with the Shenzhen Component down 1.78% and the Shanghai Composite lower by 1.35%.

The Shenzhen index was dragged by technology and consumer non-cyclical stocks, while losses on the Shanghai index were mainly due to declines in academic and educational stocks.

The broader CSI 300 index was down 1.56%.

— Lim Hui Jie

Investments in India will stay even as China's economy bounces back, says Zerodha co-founder

Optimism in India will remain even if China's economy bounces back, says Indian brokerage firm
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Optimism in India will remain even if China's economy bounces back: Zerodha
Street Signs Asia

Optimism in the Indian market will remain even when China's economy rebounds, Nikhil Kamath, co-founder of Zerodha and True Beacon said.

"Global supply chains need many hedges in place, and people are considering India a real hedge" as more countries reduce their dependency on China, Kamath said on CNBC's "Street Signs Asia" on Monday.

"That trend isn't going away even if China were to bounce back ... One could say they have bounced back, but we're still seeing new investments coming to India," he added.

The Nifty 50 has gained momentum and has surged by almost 20% in the past year.

— Charmaine Jacob

Oil trades higher after aborted Russian mercenary revolt

Oil prices rose early Monday after as investors assessed the aborted rebellion in Russia by the Wagner private military company over the weekend.

Brent crude futures rose about 1% to trade at $74.58, while U.S. West Texas Intermediate crude futures rose 0.91% to trade at $69.78.

— Lim Hui Jie

Japan service sector prices climb 1.6% year-on-year in May

Japan's producer prices index for its services sector rose 1.6% on a year-on-year basis in May, unchanged from April's growth rate of 1.6%.

This puts the index at 108.5, a 0.1% month-on-month drop compared with April's 108.6.

The PPI measures the average movements of prices received by domestic producers their services sold.

— Lim Hui Jie

Apple touches new all-time high, bucking the trend

Apple was higher Friday afternoon, managing to hit new all-time highs even as the major averages declined. Shares were last up by 0.1%.

— Sarah Min, Scott Schnipper

Health care and consumer discretionary stocks buck S&P 500 downturn

Health care and consumer discretionary stocks have been able to avoid the S&P 500's more than 1% slide this week.

Both sectors in the S&P 500 are up 0.4% on the week. UnitedHealth and Merck & Co. led the health stocks up with advances of more than 5% and 4%, respectively. CarMax helped pull the consumer discretionary sector up with a nearly 6% jump on the week.

The other nine S&P 500 sectors traded down on a week-to-date basis. Energy and real estate were the two worst performing sectors, with each dropping more than 3%.

— Alex Harring

Manufacturing sector contracts further in June, PMI reading shows

Manufacturing activity in the U.S. slowed more than expected in June, according to an S&P flash PMI reading released Friday that was the lowest in six months.

The index registered a 46.3, down from the 48.4 in May and below the 49.0 Dow Jones estimate. As the reading measures the level of companies reporting expansion, anything below 50 represents contraction.

On the services side, the reading of 54.1 was a two-month low and below the 54.9 in May. The composite index came in at 53.0, below the 54.3 from the previous month but still showing expansion even though it was a three-month low.

—Jeff Cox

U.S. Treasury yields fall as investors digest Fed speaker comments

U.S. Treasury yields fell on Friday as investors digested remarks from Federal Reserve officials, including Chairman Jerome Powell. Policymakers reaffirmed that further rate hikes would likely be needed to bring inflation closer to the central bank's 2% target.

At 4:29 a.m. ET, the yield on the 10-year Treasury was down by over six basis points to 3.7308%. The 2-year Treasury yield was trading at 4.752% after falling by more than four basis points.

— Sophie Kiderlin