Investing.com - Asian stocks fell in morning trade on Friday after official data showed China’s economy slowed more than expected in the third quarter of 2018.
China’s economic growth slowed to 6.5% year-on-year, compared with the general consensus of a 6.6% growth. It was the weakest pace since the first quarter of 2009.
On a quarterly basis, GDP grew 1.6% in the third quarter, in line with expectations but slower than the 1.8% growth in April-June.
Earlier reports said Beijing’s official growth target for 2018 is around 6.5%.
"The combination of slower global economic growth, ongoing US-China geopolitical/trade concerns and the increased likelihood the FOMC raises the funds rate by more than is currently discounted (75bps over the next 12 months) is weighing on investment sentiment," Elias Haddad, senior currency strategist at Commonwealth Bank of Australia, said in a morning note.
The Shanghai Composite and the Shenzhen Component slid 0.9% and 0.6% by 10:04 PM ET (02:04 GMT). Hong Kong’s Hang Seng Index dipped 1.0%.
While not a directional driver, chairman of the China Banking and Insurance Regulatory Commission Guo Shuqing said China will allow insurance companies to begin selling products designed to ease liquidity risks.
Elsewhere, Japan’s Nikkei 225 traded 1.3% lower on a stronger yen, while South Korea’s KOSPI slipped 0.4%.
Australia’s ASX 200 also slipped 0.3%.
Overnight, the Dow Jones Industrial Average declined 1.27%, while the S&P 500 index declined 1.44%, and the NASDAQ Composite index fell 2.06%.
U.S. President Donald Trump told reporters on Thursday that he is “waiting for the results of about three different investigations”, but it “certainly looks” like missing journalist Jamal Khashoggi is dead and warned of “very severe” consequences for the killing.