Asian markets traded lower on Wednesday, October 14, as investors digested disappointing economic data from China.
Chinese inflation figures came in weaker than expected, and came a day after trade figures showed a steep fall in imports.
Japan’s benchmark Nikkei index closed down 1.8% at 17,907.39.
China’s main index Shanghai Composite edged up 0.2% to 3,299.51, while in Hong Kong the Hang Seng index was down 0.61% at 22,460.16.
In Australia, the S&P/ASX 200 fell 0.56% to 5,173.80, while South Korea’s benchmark Kospi index dropped 0.55% to 2,007.72.
The latest official data from China – the world’s second largest economy – showed consumer inflation slowed to 1.6% in September from 2% in August. Wholesale inflation was 5.9%, unchanged from the month before.
The wholesale numbers were in line with expectations, but consumer inflation was expected to rise 1.8%. China’s target for consumer inflation is about 3%.
Economic data released on October 13 showed that imports in September fell by a more-than-expected 17.7% in yuan-denominated terms, while exports fell 1.1% from a year earlier.
As it continues to face a slowdown in economic growth, China is trying to move away from an export-led economy towards one led by consumer demand.
The sharp fall in imports posted on October 13 raised concerns around the world that domestic demand in China is weakening.
Asian stock markets have traded lower on October 13 following the release of disappointing Chinese trade numbers.
China’s latest economic data showed that imports in September fell by a more-than-expected 17.7% in yuan-denominated terms, while exports fell 1.1% from a year earlier.
The sharp fall in imports raised concerns on weakening domestic demand.
The Shanghai Composite ended up 0.2% at 3,293.23, while Hong Kong’s Hang Seng index closed down 0.6% at 22,600.46.
Japan’s benchmark Nikkei index ended down 1.1% at 18,234.74 after being closed for a public holiday on October 12.
Shares in electronics maker Sharp rose 6.5% on reports a government-backed fund may make an investment in the struggling firm.
In Australia, the S&P/ASX 200 closed down 0.9% at 5,202.9, dragged down by oil-related stocks following a sharp fall in crude prices on October 12.
South Korea’s benchmark Kospi finished lower by 0.13% at 2,019.05.
Japan’s stock market closes up almost 8% on September 9 in its biggest one-day jump since late 2008.
Nikkei 225 index closed up 7.71% at 18,770.51 points.
On September 8, the benchmark index saw all the gains it had made this year wiped out.
Remarks by newly re-elected PM Shinzo Abe suggesting company tax cuts were on the way helped the mood.
Also positive were September 8 rebound for US shares and an improving Chinese share market.
Investor sentiment was up across the rest of Asia.
Tuesday’s weak economic data from China has also raised hopes of more stimulus for that economy and its markets.
Hong Kong’s benchmark Hang Seng index finished up 4.1% at 22,131.31 – marking its biggest one-day percentage gain in almost four years.
China’s government said on September 9 that it would strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system to support the economy.
On the mainland, the Shanghai Composite closed up 2.3% at 3,243.09 – moving into positive territory for the year.
In Australia, the S&P/ASX 200 closed up 2.07% at 5,221.10, taking its lead from US markets.
Analysts said resource and commodity shares, together with some of the big bank stocks, had buoyed the Australian index.
Numbers out on September 9 showed consumer confidence slid in September which led to revived hopes of another rate cut by the Reserve Bank of Australia.
South Korea’s Kospi benchmark index also closed up 2.96% at 1,934.20 points. Official data released on September 9 showed the country’s latest unemployment figures for August sitting at their lowest since January this year.
This website has updated its privacy policy in compliance with EU GDPR 2016/679. Please read this to review the updates about which personal data we collect on our site. By continuing to use this site, you are agreeing to our updated policy. AcceptRejectRead More
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
