News Headline Summary

Chinese HSBC Services PMI (Oct) M/M 53.5 (Prev. 54.3)

- HSBC's chief economist for China says that 'despite the moderation of services activity growth, the Chinese economy is gradually bottoming out.'

Reaction details:

- No immediate reaction seen in either the Shanghai Composite or the Hang Seng.
- No immediate move in AUD/USD on the data.

However,

- 3 minutes after the release the Shanghai Composite fell 0.20% and the Hang Seng fell 0.15%, both trading now back to flat on the session.

- 15 minutes now since the release and the Hang Seng has completely reversed all of the bid that was observed at the open going into the number. It seems many were positioned for a positive reading due to the official PMI release over the weekend but the HSBC data failed to reflect that improvement on the prior months reading. Hang Sang now trades down 0.25% and the Shanghai Composite down 0.1%.

Print 01:45, 05 Nov 2012 - Asian News - Source: Newswires