Asia stocks fall as global growth concerns mount
Asia stocks fall as weak economic data in China and Europe raise concerns over global growth, while the dollar strengthens as investors assess the outlook for U.S. interest rates.
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Posted 9/6/2023, 3:33:02 AM
reuters.com
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Asia-Pacific markets fell on Friday as Japan's core inflation rate dropped to 3.1% and Chinese real estate giant Evergrande filed for bankruptcy protection in a U.S. court.
Asian stocks, particularly Chinese markets, may find some relief after Wall Street's resilience in the face of rising bond yields, though economic data from China remains underwhelming and foreign investors continue to sell Chinese stocks.
Asian stocks rise as traders await signals on interest rate plans from the Federal Reserve conference, with hopes that further rate hikes will be ruled out but concerns about inflation persisting.
Asian stock markets rebounded from an eight-day losing streak, supported by a recovery in Chinese shares, while benchmark Treasury yields reached a 16-year high on concerns of sustained high interest rates.
Stock markets worldwide experience declines amid concerns over the Chinese property market, rising US bond yields, and poor economic data in China and the UK.
Asian markets are expected to follow the global trend of weakness in stocks, a buoyant dollar, elevated bond yields, and souring investor sentiment, with no major catalysts to change the current market condition.
Asian markets will be influenced by economic indicators, policy steps, and diplomatic signals from China, as well as reacting to the Jackson Hole speeches, purchasing managers index reports, GDP data, and inflation figures throughout the week, with investors desperate for signs of economic improvement as China's industrial profits continue to slump and authorities take measures to stimulate the capital market.
China's economic slowdown is causing alarm worldwide, with countries experiencing a slump in trade, falling commodity prices, and currency depreciation, while global investors are pulling billions of dollars from China's stock markets and companies are reporting earnings hits.
Asian stock markets mostly lower as Japanese factory activity and Chinese service industry growth weaken, while Wall Street's benchmark S&P 500 rises on hopes that economic data will convince the Federal Reserve that inflation is under control.
Global interest rate hikes, challenges in China, a stronger dollar, and political instability in Africa have impacted emerging market assets, causing stock and currency declines and property market concerns in China, while Turkey's markets have seen a boost in response to interest rate hikes, and African debt markets have experienced a significant pullback.
Asian stocks are poised for modest gains as traders consider US jobs data suggesting the Federal Reserve may be close to the end of its tightening cycle.
Falling prices in China, driven by a weakened economy, could benefit countries with elevated inflation such as the U.S., India, Germany, and the Netherlands.
Asian stocks are expected to open lower as traders focus on China's economic conditions and European shares fail to provide a strong lead, while oil and bond yields remain relatively high.
Asian equities fell as China's efforts to stabilize its economy and the Reserve Bank of Australia's policy meeting were awaited.
Disappointing economic data in Asia-Pacific markets, overinvestment in China, and Chinese electric vehicle companies expanding in Europe are among the key factors impacting global markets, while the price of bitcoin remains volatile with conflicting predictions about its future.
Most Asian stocks fell on Tuesday due to concerns over slowing growth in China, a property sector meltdown, and hot inflation readings, which raised concerns over higher interest rates. Chinese stocks were the worst performers, with investors growing impatient with Beijing's slow approach to stimulus measures.
European stock markets weakened on Thursday due to signs of slowing growth in Europe and China, as well as concerns about future Federal Reserve tightening. German industrial production fell more than expected, adding to the struggles of the eurozone's largest economy. China's exports and imports also fell in August, indicating continued pressure on its manufacturing sector. Additionally, stronger-than-expected US inflation data raised concerns about sticky inflation. Oil prices fell as signs of slowing Chinese growth overshadowed a draw in US inventories.
Asian shares fell and the dollar's rally stalled as the greenback weakened against most major currencies; concerns over Apple's iPhone sales in China and the expansion of a ban on iPhones in sensitive departments in China to government-backed agencies and state companies also weighed on sentiment.
Asia stock markets are softer ahead of U.S inflation data, with investors looking for signals about the Federal Reserve's next moves on interest rates.
China's property shares are declining and tech shares are underperforming, leading to a slide in the Asian market, while the European market waits for monetary policy decisions from the ECB and the Bank of England.
Stock prices in Asia were mostly higher as investors awaited updates on U.S. inflation and China's economic data, while concerns about rising oil prices and possible higher interest rates weighed on markets.
Summary: Asian shares mostly decline as investors await U.S. consumer price data and the Federal Reserve's decision on interest rates.
Asian markets are expected to be on the defensive due to sagging stocks and rising oil prices, as investors await U.S. inflation figures that will impact the Fed's rate decision; China's real estate sector is seen as the most likely source of a global systemic credit event.
Asian stock markets fell as Wall Street experienced a decline, with investors preparing for key US inflation data, and a spike in oil prices added to concerns about persistent price pressures and the interest rate outlook.
Asian markets are expected to finish the week strong due to positive movements in the U.S. and Europe, although the release of economic data from China may dampen the mood, as it includes indicators such as house prices, fixed asset investment, and unemployment. The Chinese government is aiming to support the economy, but doubts remain about reaching the 5% GDP growth target and trade relations with the West continue to deteriorate. However, if investors continue with the bullish momentum from Thursday, these concerns may be temporarily set aside.
China's macroeconomic challenges, including deflationary pressures, yuan depreciation, and a struggling property sector, could have broader implications beyond its borders, impacting global metal exporters, trade deals, and global inflation; however, investing in China's stocks may offer compelling valuations despite the current downturn.
The dollar remains stable in Asia, while the yuan strengthens due to positive economic data from China.
The massive retreat of funds from Chinese stocks and bonds is reducing China's influence in global portfolios and accelerating its decoupling from the rest of the world, as foreign holdings of equities and debt have significantly decreased amid China's economic slump and tensions with the West.
China's stock market has slumped due to worrying economic data including falling prices, missed expectations in retail sales and industrial production, and plunging real estate investment, leading analysts to express concerns about an impending downward spiral in the Chinese economy.
Summary: U.S. stocks slumped amid mixed sentiment about the economy, with only the Dow Jones Industrial Average rising for the week, while Asia-Pacific markets mostly fell, and China's venture capital investment dropped by 31.4% compared to 2022 due to its sluggish economy and geopolitical tensions discouraging foreign investors.
Asia-Pacific markets fell as traders awaited the Reserve Bank of Australia's policy meeting minutes, while European markets were weighed down by a spike in corporate lending rates; meanwhile, Goldman Sachs predicts that the Fed is done hiking this year and the recent increase in oil prices could benefit London's prime office real estate market.
Asian stocks sink as investors await the Federal Reserve's policy decision and concerns over inflation rise due to a surge in oil prices.
Asia-Pacific markets are expected to continue declining as investors wait for China's loan prime rates and the U.S. Federal Reserve's rate decision, while oil prices rise due to supply concerns and all 11 sectors in the S&P 500 trade down.
Asian stocks struggle as surging oil prices contribute to inflation and the possibility of higher interest rates, while Brent crude futures remain high and 10-year US Treasury yields reach 16-year highs.
Equity markets in Asia are expected to face selling pressure due to worsening risk sentiment and concerns about higher interest rates signaled by the Federal Reserve, leading to declines in U.S. stocks and a fall in futures for benchmarks in Australia and Japan.
Chinese stocks defy regional declines as tech stocks rise, while the 10-year Treasury yield slightly decreases from a 16-year high; US futures tick higher following a 1.6% slide in the S&P 500; bond yields rise in Australia and New Zealand after positive US labor market data; and India's sovereign debt is set to be included in JPMorgan's benchmark emerging-markets index.