(Bloomberg) — Stocks in Asia declined after disappointing China services data added to concern over the nation’s economic malaise. The dollar edged higher.

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Hong Kong shares led losses, with the benchmark index slipping more than 1% led by property firms. An industry survey of China’s services sector showed activity expanded at the slowest rate this year in August, a signal the economic recovery is losing traction. The MSCI Asia Pacific Index is heading for its first decline in seven days.

“It’s the typical post-party reality check that’s cooling down China’s rally today, as the services PMI notably missed expectations, suggesting further economic downtrend ahead,” said Hebe Chen, an analyst at IG Markets Ltd. in Melbourne.

In more positive news, Country Garden Holdings Co. is proposing to extend principal payments for eight yuan bonds, according to holders who said they were briefed by company advisers. The developer also told creditors it’s paid coupons of two dollar bonds within the grace periods.

South Korean stock also Fell after inflation accelerated faster in August than economists forecast on the back of rising energy costs. That supports the case for the central bank to keep the door open to further policy tightening.

Equities also declined in Australia, where the central bank is set to keep rates unchanged for a third month later Tuesday.

The dollar strengthened against all its Group-of-10 peers, while Treasuries edged lower as cash trading resumed following a US holiday Monday. Australia’s bonds also fell ahead of the central bank decision.

The offshore yuan weakened following the PMI data.

Oil traded near the highest level since November after a surge driven by supply cuts from OPEC+ that have tightened the market. Gold fell.

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Goldman Sachs Group Inc. lowered its estimate of US recession probability. “Continued positive inflation and labor market news has led us to cut our estimated 12-month US recession probability further to 15%, down 5pp from our prior estimate,” Jan Hatzius, its chief economist, wrote in a note.

Key events this week:

• Australia rate decision, Tuesday

• Eurozone S&P Global Eurozone Services PMI, PPI, Tuesday

• US factory orders, Tuesday

• ECB President Christine Lagarde chairs panel focused on central banks and international sanctions at ECB Legal Conference, Tuesday

• Australia GDP, Wednesday

• Eurozone retail sales, Wednesday

• Germany factory orders, Wednesday

• US trade, Wednesday

• Canada rate decision, Wednesday

• Bank of England Governor Andrew Bailey testifies to the UK parliament’s Treasury Select Committee, Wednesday

• Federal Reserve issues Beige Book economic survey, Wednesday

• Boston Fed President Susan Collins speaks on the economy at New England Council, Wednesday

• China trade, forex reserves, Thursday

• Eurozone GDP, Thursday

• US initial jobless claims, Thursday

• Bank of Canada Governor Tiff Macklem to speak on the Economic Progress Report, Thursday

• New York Fed President John Williams participates in moderated discussion at the Bloomberg Market Forum, Thursday

• Atlanta Fed President Raphael Bostic speaks on economic outlook at Broward College, Thursday

• Japan GDP, Friday

• France industrial production, Friday

• Germany CPI, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.2% as of 12:27 p.m. Tokyo time

• Nasdaq 100 futures were little changed

• Japan’s Topix fell 0.4%

• Australia’s S&P/ASX 200 fell 0.5%

• Hong Kong’s Hang Seng fell 1.5%

• The Shanghai Composite fell 0.6%

• Euro Stoxx 50 futures fell 0.1%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%

• The euro was little changed at $1.0787

• The Japanese yen fell 0.2% to 146.74 per dollar

• The offshore yuan fell 0.2% to 7.2925 per dollar

• The Australian dollar fell 0.5% to $0.6426

Cryptocurrencies

• Bitcoin fell 0.8% to $25,609.71

• Ether fell 1% to $1,611.81

Bonds

• The yield on 10-year Treasuries advanced three basis points to 4.21%

• Japan’s 10-year yield advanced 1.5 basis points to 0.655%

• Australia’s 10-year yield advanced five basis points to 4.14%

Commodities

• West Texas Intermediate crude rose 0.5% to $85.94 a barrel

• Spot gold fell 0.3% to $1,937.15 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Jason Scott and Georgina McKay.

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