The ISM Manufacturing PMI dropped 1.3pt to 49pts, returning to the contractionary territory after two months above the neutral level of 50. The survey highlighted a rapid decline in demand, with the new orders index falling 3.4pt to only 45.2, the lowest level in almost two years and almost 10pts below the level only two months ago.
The other main event overnight has been the RBA’s latest policy meeting. The RBA decided to leave their policy rate unchanged at 4.10% as expected after delivering the first rate cut in the easing cycle at the previous meeting in February.
A strong finish to last week by US equities helped buoy investor sentiment at the start of this week in Asia. Upside surprises in China’s cyclical data also helped boost investor sentiment. Holding back sentiment, however, were US Treasury Scott Bessent suggesting the recent US equity market rout was a healthy correction and weak Chinese house prices data showing the sector was still in a slump.
