Asian stocks slip after major US sell-off

HONG KONG, Aug 01 (AFP): Asian markets ended their recent rally Friday after the Dow posted its biggest single sell-off since February on weak eurozone data and as news of Argentina's debt default shook the market.
But the dollar inched up against other major currencies in Asia on Friday as investors predicted upcoming US jobs data for July would be solid.
Tokyo's Nikkei fell 0.63 per cent or 97.66 points, closing at 15,523.11, Sydney dropped 76.5 points, or 1.36 per cent, to finish at 5,556.4, and Seoul dipped 0.15 per cent, or 3.02 points, to end at 2,073.10.
In the afternoon Hong Kong was down 0.80 per cent, while Shanghai fell 0.74 per cent, or 16.26 points, to close at 2,185.30. Shenzhen also fell 1.01 per cent, or 11.72 points, to 1,148.29.
The drop came despite Chinese manufacturing activity increasing sharply in July and rising at its fastest pace in more than two years, according to official statistics.
The official purchasing managers index, which is a leading indicator of overall economic activity, hit 51.7 last month-its best showing since April 2012.
In the United States, The Dow Jones Industrial Average tumbled 1.88 per cent to 16,563.30, erasing all its gains since the end of 2013.
The broad-based S&P 500 sank 2.00 per cent to a seven-week low while the tech-rich Nasdaq Composite Index fell 2.09 per cent.
The causes of the fall are diverse but a key catalyst was the failure of Argentine Economy Minister Axel Kicillof and US hedge funds to reach a deal, setting the stage for Argentina's second default in 13 years.