By Ambar Warrick
Investing.com -- Asian stocks kept to a small range on Tuesday as a raft of weak manufacturing data raised concerns over slowing economic growth, while a spike in oil prices also brewed fears of higher inflation.
Hong Kong’s Hang Seng index was the worst performer for the day, down 1.1% as technology and property stocks were hit with a fresh wave of selling. Concerns over slowing economic growth in China also dented sentiment after a private survey showed that the country’s manufacturing sector grew much less than expected in March.
A post-COVID rebound in the Chinese economy now appears to be running out of steam, as local factories grapple with slowing overseas demand amid worsening economic conditions.
Still, some Chinese chipmaking stocks extended gains into a second straight session, as an investigation into U.S. memory chips maker Micron Technology Inc (NASDAQ: MU ) opened up the possibility of more market share for local manufacturers.
Japan’s Nikkei 225 index fell 0.3%, after data on Monday also showed that the manufacturing sector shrank through March, while capital expenditure among the country's largest companies slowed in the first quarter.
A spike in oil prices, following an unexpected output cut by the Organization of Petroleum Exporting Countries and allies, also pushed up fears that higher fuel prices will keep inflation elevated in the near-term.
Markets also feared that higher inflation could invite more monetary tightening by major central banks. This notion, coupled with a slowing economic rebound in China, weighed on the outlook for Asian markets.
Regional central bank meetings were also on the cards this week. Australia’s ASX 200 moved little ahead of a Reserve Bank decision on interest rates, with markets split over whether the bank will hike or hold interest rates.
The Reserve Bank of India is also set to meet later this week, and is expected to hike interest rates.
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