Global equities began September on the back foot, after four months of gains, as China’s efforts to support its ailing economy showed no signs of taking hold.
A gauge of Asian stocks fell, as did a global metric, marking the first day of trading in a typically volatile month for markets.
In Hong Kong, the benchmark index declined with shares of New World Development Co. falling as much as 14% after the indebted property developer said it expected to post its first annual loss in two decades.
European index futures slipped, as did their US index counterparts. The dollar was steady, while purchasing managers’ surveys for Taiwan, Thailand and Indonesia all declined, weighing on their currencies.
Cash Treasuries were closed for the US Labor Day holiday. Global funds are positioning for major central banks, including the Federal Reserve, to reduce interest rates in September.
At the same time, multiple rounds of stimulus have failed to revive growth in China, where a prolonged property market slump is curbing domestic demand in the world’s second-largest economy.
