PERTH: The Australian sharemarket is down by more than 1 per cent amid a broad-based sell off across Asian sharemarkets and after the Reserve Bank board held interest rates steady at 2 per cent.
Weak manufacturing data out of China sparked a sell-off on Asian bourses, which saw all major exchanges kick off Tuesday in the red.
At 3pm (AEST), the benchmark S&P/ASX200 index was down 65.6 points, or 1.26 per cent, to 5141.4, while the broader All Ordinaries lost 62.5 points, or 1.2 per cent, to 5162.1.
China’s official manufacturing purchasing managers index for August came in at 49.7, below last month’s reading of 50.0. A number below 50.0 implies a contraction of the industry.
China’s Shanghai Composite Index was down more than 3 per cent at noon, while Tokyo’s Nikkei Stock Average fell 1.3 per cent. South Korea’s Kospi was off 0.5 per cent.
The Reserve Bank held the cash rate steady at its September board meeting, in line with expectations.
“Much of last week’s selling related to fears of a weakening Chinese economy,” CMC Markets analyst Michael McCarthy said. “Today brings both the official and private read on manufacturing activity.”
“Although services businesses in China are expected to grow faster than manufacturing, it remains a focus for markets,” he said.
http://www.couriermail.com.au/business/breaking-news/aust-stocks-dive-ahead-of-rba-call/story-fnn9c0gx-1227507579556
