Asian Stock Market: Trades in negative territory, Chinese indices leading losses

• Asian stock markets edge lower on Tuesday amid the concern over China’s economic woes.
• China's services activity in August grew at the slowest pace in eight months.
• The Japanese spending suffered its largest decline in nearly two and a half years.

Asian stock markets are trading lower on Tuesday, with Chinese equities leading losses amid the ongoing concerns about an economic slowdown and a property sector crisis.

At press time, China’s Shanghai is down 0.63% to 3,157, the Shenzhen Component Index declines 0.46% to 10,562, Hong Kong’s Hang Sang dips 1.57% to 18,545, South Korea’s Kospi is down 0.08% and Japan’s Nikkei is down 0.14%.

Chinese stocks were the worst performers on Tuesday, led by Hong Kong’s Hang Sang. Concerns over the overwhelmed property developer Country Garden Holdings impacted on the regional market. On Tuesday, Reuters reported that Country Garden, China's biggest private property developer, paid interest on two US Dollar bonds due last month. The grace period for coupon payments ended on Tuesday, but Country Garden avoided default. However, the risk sentiment is still dampened as investors are concerned about the economic slowdown in China.

China's services activity in August grew at the slowest pace in eight months. Caixin reported on Tuesday that the Chinese Services Purchasing Managers' Index (PMI) fell to 51.8 in August from 54.1 in July.

In Japan, the nation’s spending suffered its largest decline in nearly two and a half years. That said, the Japanese household spending plunged 5.0% YoY in July, worse-than-expected of a 2.5% drop. This figure marked the fall for the fifth consecutive month.

Philippine inflation accelerated for the first time in seven months in August, owing mostly to an increase in food and transport costs. Consumer Prices increased 5.3% YoY in August from the previous reading of a 4.7% increase in July.

On the Aussie front, the Reserve Bank of Australia (RBA) decided to maintain the Official Cash Rate (OCR) unchanged at 4.10% at its September’s meeting. The central bank stated that the decision to keep interest rates on hold gives it more time to examine the effect of the current rate hike and the economic outlook.

Looking ahead, the US Factory Orders will be due on Tuesday in the American session. The attention will then shift to the US ISM Services PMI on Wednesday. Market participants will closely watch the release of Chinese Trade data on Thursday ahead of the Japanese Gross Domestic Product (GDP) for Q2 on Friday.