Asian stocks stumble as weak Chinese data incite global growth concerns

File photo: On November 2, 2020, a man wearing a protective face mask passed the stock price list outside a securities company during an outbreak of coronavirus disease (COVID-19) in Tokyo. REUTERS / Issei Kato

September 15, 2021

Arun John

Hong Kong (Reuters) – China’s weak economic data has heightened concerns about slowing economic growth in the world and the world’s second-largest, amid the nervous situation of the still dominant pandemic and the tapering of central bank stimulus. Asian stocks fell on Wednesday.

MSCI’s widest non-Japanese equities index fell 0.82%, expanding previous losses after the release of China’s data. On the other hand, the Nikkei Stock Average in Tokyo fell 0.89%, recording the closing price of more than 31 years the day before.

A burst of data from China showed that companies are addressing the effects of sporadic COVID-19 outbreaks, supply bottlenecks, and local blockades following high raw material costs.

Retail sales have grown at the slowest pace since August 2020, disappointing analysts, but industrial production has also risen at a slower pace since July, highlighting recent signs that China’s economic momentum is slowing. However, Beijing expects to provide more inspiration in the coming months.

After the data, China’s top stocks fell 0.73%.

Hong Kong’s benchmark has fallen 0.87%, down to casino stocks, as Macau’s game hub began talks ahead of rebids for multi-billion dollar casinos next year.

Wynn Macau’s share fell by more than 30% at some point.

The market also continued to focus on the timeline to taper off the large pandemic-led stimulus of the Federal Reserve.

Sean Debow Asia CEO of Eurizon Asset Management said: ..

Debow said the market has responded quickly to data points on employment and inflation so far, but will become clearer in both in the coming weeks.

The Ministry of Labor reported overnight that the consumer price index in August recorded the lowest rise in six months. This suggests that inflation has probably peaked, in line with FRB Chairman Jerome Powell’s long-standing belief that high inflation is temporary.

Lower inflation suggests less pressure on the Fed to start cutting huge asset purchases, resulting in a benchmark 10-year bond US10YT = RR yield of 1.263% in August. It was the lowest since the 24th. ..

In Asia on Wednesday, yields recovered slightly, staying unchanged at 1.285%, but the dollar was stable as inflation fell against its peers’ baskets.

Overnight on Wall Street, concerns over slowing growth caused the Dow Jones Industrial Average <.DJI to fall, the S & P 500 to fall 0.57%, and the Nasdaq Composite to fall 0.45%. [.N]

Only one-tenth of respondents to Bank of America’s monthly fund manager survey expect a stronger global economy in the coming months, the lowest percentage since the first COVID-19 panic in April last year. is showing.

The reason for the pessimism was the prevalence of delta variants.

Crude prices rose with a higher-than-expected drawdown of U.S. crude oil inventories, with U.S. crude oil up 0.51% to $ 70.82 a barrel and Brent crude oil up 0.46% to $ 73.94 a barrel. .. [O/R]

Spot gold traded at $ 1802.0374 per ounce, 0.12% off, reaching a weekly peak of $ 1,808.50 with low interest rate prospects. [GOL/]

(Edited by Shri Navaratnam)

Asian stocks stumble as weak Chinese data incite global growth concerns

Source link Asian stocks stumble as weak Chinese data incite global growth concerns

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