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Asian equities edged down on Monday as China announced its slowest quarterly economic growth rate of the last 27 years.
Following the release of China's second-quarter economic data, the CSI 300 indexes of Shanghai and Shenzhen-listed shares reduced their prior losses by 0.2%, while the Hang benchmark index Seng Hong Kong was down 0.1%.
Earlier, the Chinese government had announced economic growth of 6.2% in the second quarter of the year, its slowest pace since the early 1990s, while a bad trade war weighed on the activity. The growth figure was in line with expectations but lower than the 6.4% recorded in the first quarter.
"This slowdown in economic growth is probably, at least in part, already integrated" for the Chinese stock market, said Gerry Alfonso, one of Shenwan Hongyuan Securities' directors.
Chinese data suggest that manufacturing, a key indicator of the country's growth, has increased, with industrial production increasing by 6.3% in June, up from 5% in May. Growth in retail sales has also improved, suggesting that domestic consumption remains robust.
"The print mitigates market fears about the threat of a difficult landing for the Chinese economy," said Stephen Innes, managing director of Vanguard Markets.
In other countries, Korea's Kospi lost 0.1%, while Australia's S & P / ASX 200 lost 0.4%. The Japanese stock market is closed for holidays.
The futures on the S & P 500 index were about to open when Wall Street would start trading later on Monday
To come up
- Trade data from Indonesia
- Retail sales in the Netherlands
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Markets Briefing is an overview of global markets, updated throughout the trading day by Financial Times journalists in Hong Kong, New York and London. Return of information? Write in the comments below or send us an email.
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