China’s disappointing data dump weighs on Asia stocks

china investor worried stock market

Asian stocks fell on Thursday after China released disappointing industrial, employment and retail data.
The uninspiring figures come after the world’s second-biggest economy cut its growth forecast to the lowest level in nearly 30 years.

Asian stocks slid on Thursday after China released a raft of uninspiring industrial, employment and retail data.

Chinese industrial output rose 5.3% in the first two months of 2019, its slowest rate of growth in 17 years, according to Reuters. Unemployment increased to 5.3% in February, up from 4.9% in December.

The new evidence of a slowdown comes a little more than a week after the world’s second-largest economy lowered its growth forecast to between 6% and 6.5% this year, its slowest rate of expansion in nearly 30 years.

Private-sector fixed-asset investment climbed 7.5%, down from 8.7% in 2018. Retail sales growth of 8.2% was in line with December but continues to hover at 15-year lows. Automobile sales fell for the eighth month in a row in February.

There were a few bright spots in the data dump. Fixed-asset investment grew by 6.1% in the first two months of the year, up from 5.9% in the same period of 2018. A key driver was property investment, which surged by 11.6%, a five-year high. Infrastructure investment also rose 4.3%.

Here ‘s the market roundup as of 9.08 a.m. (5.08 a.m. ET):

The Shanghai Composite Index and SZSE Component Index fell 1.2% and 1.8% respectively, while the DJ Shanghai slid 1.1%.
The FTSE 100, Euro Stoxx 50 and DAX were all up by about 0.5% to 0.7%, likely reflecting UK lawmakers’ vote on Wednesday to rule out a no-deal Brexit.
US futures were slightly up, suggesting the Dow, S&P 500 and Nasdaq could gain between 0.1% and 0.25% when markets open later today.

SEE ALSO: ‘China isn’t going to implode’: A Wall Street chief strategist breaks down why the nation’s latest economic warning isn’t a disaster and outlines the path higher for US stocks

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Source:: Business Insider


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