oann

Asia stocks decline due to negative impact of weak China data.

Asia Stocks Hit 11-Week Low Amid Concerns Over U.S. Interest‌ Rates

By Kane Wu

HONG KONG (Reuters) – Asia stocks hit an 11-week ⁣low ‍on Wednesday as renewed​ concerns about U.S. interest ⁤rates slugged Wall Street, ‌while investors still smarted‍ from dismal‌ Chinese economic data and the absence of meaningful stimulus.

Advertisement

MSCI’s‍ gauge of Asia Pacific stocks outside ⁣Japan was down 1.1% at 0138GMT, touching its lowest point since June 1.

Japan’s Nikkei 225 index slipped 1.3% to‍ its ⁣lowest since July‍ 12. Australia’s‌ S&P/ASX 200 index fell nearly ⁤1.5%.

China reported weaker than expected July activity data ⁢Tuesday, accompanied by news that Beijing would ‍no longer publish youth unemployment data.

The PBOC also unexpectedly lowered ⁤its policy rate ⁤on Tuesday, earlier than many investors had expected and possibly‍ probably triggered by ⁤the string of disappointing data on loans⁤ and ⁤credit, the ‍housing market and trust industry as well as the threat of ​deflation.

“Investors sentiment⁢ toward China is pretty bad,” said Redmond Wong, Greater China market‌ strategist at Saxo Markets.

Wong said he was most concerned about month-to-month decline‍ of ⁢China’s retail sales and weak‍ infrastructure investments, which suggested lack of funding from local governments.

China’s industrial output ⁣and retail sales ‌growth both slowed⁣ from ⁢a month earlier to⁢ a year-on-year pace of 3.7%‌ and​ 2.5% respectively,⁤ missing expectations.

Hang Seng⁢ Index and China’s benchmark CSI300 Index opened 1.21 and 0.43% lower respectively.

“We think the Chinese ‍Central bank is not going hard enough on reducing interest rates,‌ encouraging the banks ⁣to lend more and stimulate very ⁢flat consumer activity,” said John Milroy,⁢ ⁣ an⁣ investment‍ adviser at Ord‌ Minnett.

The world’s second largest economy⁢ is ​due ⁢to report ⁣new home price data for July⁢ on Wedneday.

Last​ month, prices ⁢fell by a very​ marginal 0.06%. If the decline begins⁤ to accelerate,⁤ it will feed back on ⁣weaker⁣ consumer confidence and weigh on already ‍feeble retail sales ‍growth.

All three major‍ U.S. equity indexes ended Tuesday⁢ lower, after a stronger-than-expected report on⁢ U.S. ⁤retail sales ‌data. The Dow Jones ‌Industrial Average fell 1.02%. The S&P 500 dropped 1.16% and‍ the ⁢Nasdaq Composite shed 1.14%⁢ in value.

The data increased the odds ‍for the Fed to ‌keep rates at high levels for longer and offered strength ​to⁤ the greenback, pressing⁤ on riskier currencies, typically ‍the Australian⁣ dollar and ​the New ‌Zealand dollar, said Tina⁣ Teng, Markets​ Analyst, CMC Markets APAC & Canada, in a Wednesday note.

“Focus will be on the results as they land and any of the outlook commentary. BHP next week important particularly⁢ view on iron ⁤ore and feed back ​on​ what the⁢ steel ‌mills⁣ are saying ⁤and doing.‌ US housing numbers and approvals ⁣will be interesting, been very⁣ strong form other ⁢measures,” Ord ⁢Minnett’s ​Milroy said.

U.S. crude was down 0.31% at ‌$80,74 a barrel, while Brent fell 0.26% to ⁣$84.67 a barrel.

Spot gold ⁤was flat ⁣at around $1,901.8 an ounce.

(Reporting by Kane‍ Wu; Editing by ⁣Lincoln Feast)

Trump Promises ​an ‌Irrefutable Report, While Brian ⁤Kemp Says⁢ Georgia’s Elections Are Secure

The 45th president has ⁤been indicted for⁤ the 4th time ‌this ⁤year, as anticipated. Trump denies any wrongdoing in Georgia and has teased a forthcoming report ​that he claims will lead ‌to ‌new ⁢charges⁣ being dropped and result in ⁣his ‘complete exoneration.’

Death Toll in Maui Rises to at Least 99 with Hundreds Still Missing

The fatalities ​are expected to increase.

Officials in Fulton ⁢County, GA say the “fictitious” indictment ‌that appeared on the county clerks website,⁢ hours earlier was a ‘sample working document’.

Social Media Company ‌X Delays Access‌ to Reuters⁣ Content Links

Google Plans ‍to Train 20,000 Nigerian Women and Youth in ⁣Digital Skills

Amazon.com to Apply Manufacturer-Sponsored Coupons to⁣ Insulin‌ Purchases

FBI Warns U.S. Representative⁣ Don Bacon of Potential Threats


Read More From Original Article Here: Asia stocks fall as weak China data weigh

" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases

Related Articles

Sponsored Content
Back to top button
Available for Amazon Prime
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker