🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

GLOBAL MARKETS-Asian stocks retreat as China's growth slowdown deepens

Published 14/11/2019, 05:31 pm
© Reuters.  GLOBAL MARKETS-Asian stocks retreat as China's growth slowdown deepens
USD/JPY
-
USD/CHF
-
US500
-
AXJO
-
JP225
-
HK50
-
LCO
-
ESZ24
-
CL
-
EU50
-
US10YT=X
-
MIAPJ0000PUS
-
CSI300
-

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Chinese Oct economic indicators miss forecasts

* Hopes for resolution to U.S.-China trade war fade

* Asian stocks drop, Hong Kong falls most

By Stanley White and Tom Westbrook

TOKYO/SINGAPORE, Nov 14 (Reuters) - Asian stocks fell on Thursday after soft economic data in China and Japan showed the trade war between Beijing and Washington hitting growth in some of the world's biggest economies.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3%. Japan's Nikkei stock index .N225 fell further, dropping 0.8%.

Australia's S&P/ASX200 .AXJO wiped earlier gains to close 0.5% higher, while Shanghai blue chips .CSI300 trod water, supported by expectations the gloomy figures would add to the case for stimulus.

European stock futures STXEc1 point to a flat open after recent rises. U.S. futures ESc1 were down 0.1%, following a record-high close on the S&P 500 .SPX on Wednesday.

China's industrial production growth slowed sharply in October, with the 4.7% year-on-year rise well below forecasts for 5.4%. Investment growth hit a record low and retail sales also missed expectations. weakness in investment and production would suggest that confidence is down," said Shane Oliver, chief economist at AMP Capital in Sydney.

"It puts more pressure on Chinese authorities to come to a deal with Donald Trump on trade, just as President Trump's desire to be re-elected puts pressure on him to come to a deal."

The weak figures also come as market confidence toward a resolution weakens, with a new Reuters poll showing most economists do not expect Washington and Beijing to strike a permanent truce over the coming year. offered no update on the progress of negotiations in a policy speech on Tuesday. The Wall Street Journal reported on Wednesday that talks had snagged on farm purchases. the global fallout from the dispute is widening.

Data due at 0700 GMT will reveal whether Germany has entered a technical recession, as forecast.

Japan's economic growth hit its slowest pace in a year in the third quarter as soft demand knocked exports. around the region, you've had some near misses of recession - Korea's been one, Singapore's also been one and you've got Hong Kong in a recession at the moment," said Sean Darby, global equity strategist at Jefferies in Hong Kong.

"So it's not great. It's not a cycle that is not leaving any scars," he said.

Worries about spiralling violence as anti-government protests intensify in Hong Kong have also soured investor sentiment.

Protesters paralysed parts of Hong Kong for a fourth day on Thursday, forcing school closures and blocking highways and other transport links in a marked escalation of unrest in the financial hub. Kong's Hang Seng .HSI fell 0.8% on Thursday to a fresh one-month low.

In currency markets, safe havens such as the Japanese yen and Swiss franc held on to gains.

The yen JPY=EBS was quoted at 108.70 per dollar, close to a one-week high. The Swiss franc CHF=EBS traded at 0.9900 versus the greenback, near the highest in more than a week.

The Australian dollar skidded to a one-month low on Thursday after a worryingly weak reading on employment re-ignited speculation about another cut in interest rates. crude LCOc1 futures rose 0.6% to $62.76 a barrel while U.S. West Texas Intermediate (WTI) crude CLc1 gained 0.63% to $57.48 per barrel. yield on benchmark 10-year Treasury notes US10YT=RR rose to 1.8652% compared with its U.S. close of 1.869% on Wednesday.

https://tmsnrt.rs/2XcxMFv

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Sam Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.