China PMI Data and Weak Services Activity Dent Asian Stocks
Asian shares declined as China's services industry growth slowed, raising concerns about the country's economic recovery. Stocks fell in Japan, South Korea, and Australia, while futures for US and European benchmarks edged lower. The offshore yuan reversed an advance, and oil weakened after rallying on output cuts. Investors are worried that higher rates and a worsening economic backdrop will limit stock gains. However, some remain optimistic that equities will shine once the bad news is flushed out. The US nonfarm payrolls report on Friday will provide insights into the trajectory of monetary policy.