“
Earlier in the session, most Asian stock markets started the new month under pressure following weak Chinese data over the weekend. Hang Seng dropped about 1.8% and H shares tumble almost 2%. Chinese equities had rallied on Friday after Bloomberg reported that the government is considering allowing homeowners to refinance as much as $5.4 trillion of mortgages to lower borrowing costs. But the benchmark gauge fell 1.7% on Monday, wiping out all of Friday’s gain, and tumbling to a seven-month low, helping to push the emerging-market benchmark lower for the fourth time in five days, as data showing weakness in the world’s second-biggest economy stoked concern Beijing’s stimulus plan isn’t working.
The Shanghai Shenzhen CSI 300 Index dropped to lowest level since Feb. 5, as mainland stocks that have erased $1.12 trillion since May extend losses.
Weekend releases showed factory activity contracted for fourth straight month, value of new-home sales fell almost 27% from year earlier and disappointing earnings from companies including China Vanke also soured sentiment. With consumer demand already weak, data show industry also slowing, raising urgency for further stimulus.”
