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Friday 5:25
What do you want to know
- China's quarterly economic growth slows to 6.5%
- Asia-Pacific shares follow Wall Street shares
- Renminbi stable, Chinese stocks jerky
- Oil prices increase slightly
Overview
Asia-Pacific stocks tumbled on Friday following lingering worries over interest rates and trade tensions in the US, while China's figures showed the slowest pace of economic growth for almost 10 years.
Hot topic
China's gross domestic product growth slowed to 6.5% in the third quarter from the previous year, down from a Reuters poll of 6.6% and at the slowest pace since the first quarter of 2009.
The disappointing growth of the world's second largest economy was recorded as the country struggled against the fallout from the continuing trade war with the United States.
Julian Evans-Pritchard, chief Chinese economist at Capital Economics in Singapore, said that the reading of growth was consistent with more general evidence of the slowdown in the Chinese economy and the need for further easing for support growth.
"The easing of policies has not yet reversed the downward trajectory of broad credit growth, which constitutes a major obstacle to the economy, and the fact that US importers do not anticipate the impact means that the impact of tariffs has not yet been felt, "he said.
The Chinese onshore renminbi, which is allowed to trade 2% of both sides of a daily central point set by the country's central bank, has remained stable after GDP data at Rmb 6.9348 per dollar. The onshore renminbi hit its all-time low in 21 months on Thursday, after China escaped the US money-manipulator rating, bringing the currency closer to line Rmb7, reaching its lowest level in a decade. The offshore renminbi was a little weaker at Rmb 6.9382 for a dollar.
Chinese equities reversed their first declines following the publication by the financial regulators of the defense of the country's economy. Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, dismissed the weakness and told the China Securities Journal that "the market was unaware of the fundamentals of China's economy. [and] does not reflect the health of the Chinese financial system ".
The CSI 300, consisting of Shanghai and Shenzhen shares, rose 0.2% after falling 1.1% earlier in the session. It reached its lowest level since March 2016. The Shanghai Composite remained stable after a fall of 2.9% on Thursday. took the index to a new four year low.
stock
A range of factors, including expectations of further interest rate hikes in the United States, concerns over US-China trade tensions, and concerns over the Italian budget and unstable markets in US-Canada relations. Saudi women Thursday.
This combination resulted in a massive sale to Wall Street overnight, with the S & P 500 losing 1.4% and the Nasdaq Composite closed down 2.1%.
Shares in the Asia-Pacific region followed the fall of Wall Street on Friday. In Japan, Topix fell by 1.1%, the telecommunications sector by 1.5% and technology stocks by 1.3%.
The S & P / ASX 200 declined by 0.2% in Australia, with the materials and health products sector falling by 0.7% and 0.8% respectively.
Hong Kong's Hang Seng lost 0.3 percent, after reducing losses early in the session, bringing it to its lowest level in 17 months. The technology sector declined 1.3% and cyclical consumption 1.1%.
The Hang Seng China Enterprises index of Chinese companies listed in Hong Kong is down 0.1% after briefly becoming positive in late morning trading.
Kospi of South Korea lost 0.2%.
Forex
On the currency markets, the dollar index, a measure of the greenback versus a basket of currencies, has strengthened to 95,964. The yen weakened by 0.2% to 112.38 JPY and the pound remained stable at 1.3021 USD, while the euro floated at 1.1457 USD.
Fixed income
The 10-year US Treasury yield remained stable at 3.177%, while that of 10-year Japanese government bonds was virtually unchanged at 0.138%.
Basic products
The price of oil soared, with Brent rising 0.2% to $ 79.41 per barrel and West Texas Intermediate up 0.1% to $ 68.73 a barrel.
The price of gold continued to climb in a more general climate of uncertainty, up 0.2% to $ 1,227 an ounce.
For market updates and comments, follow us on Twitter @FTMarkets
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