Asian markets flat after US manufacturing slowdown
Asian markets are holding steady as investors wait to see how events in Ukraine unfold and whether the slowdown in US manufacturing continues.
Markets will be watching not only the West's response to the annexation of Crimea but whether Russia will slip into recession.
Japan's Shoko Chukin survey revealed that a last minute spending rush by consumers ahead of April's consumption tax hike pushed the headline index for business conditions up from 50.6 in February to 53.5 in March. However, companies are forecasting a fall in the index to 46.6 in April, which would be the lowest level since February last year.
Marcel Thieliant, Japan economist at Capital Economics, commented:
As small companies derive less of their income from overseas than large companies, they will likely suffer most from the drop in domestic demand following the increase in the sales tax.
The Nikkei is up 0.01 per cent while the Hong Kong Hang Seng Index is down 0.3 per cent. South Korea's Kospi is also down 0.3 per cent while the Tokyo Stock Exchange Tokyo Price Index is enjoying gains of 0.2 per cent. The Shanghai Stock Exchange Composite Index is down 0.06 per cent.