Asian Markets Pulled Back amid China’s Weak Economic Data
China’s Shanghai Composite Index lost momentum last week and broke a three-week rising streak. China started this week with improved market sentiment and rose in the first three trading days. However, it pulled back on Thursday amid weaker-than-expected economic data and closed lower.
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According to data released by the National Bureau of Statistics of China on Wednesday, China’s fixed asset investment rose 7.8% in August, which was less than analysts’ forecast of 8.2% growth. China’s industrial production rose 6% in August, which was less than the forecast of 6.6% growth. China’s retail sales rose 10.1% year-over-year in August, which is less than the market’s expectation of 10.5% growth. China’s weaker-than-expected economic data raised concerns that the economy started to cool down, which weighed on Chinese markets.
The market is looking forward to China’s new loans data that are scheduled to release on September 15. On September 14, 2017, the Shanghai Composite Index fell 0.38% and ended at 3,371.43. The SPDR S&P China ETF (GXC) rose 0.33% and closed at 102.75.
After pulling back last week, Hong Kong’s Hang Seng Index started this week on a stronger note and rose in the first three trading days. However, it lost strength on Wednesday amid profit-booking and weakness in financials and property stocks. It opened lower on Thursday amid China’s weaker-than-expected economic data and closed lower. On September 14, the Hang Seng Index fell 0.42% and closed the day at 27,777.20. On September 13, the iShares MSCI Hong Kong Index (EWH) fell 0.32% and closed at 24.83.
Japan’s Nikkei Index had a strong start this week and rose for three consecutive trading days along with other major Asian markets. However, the Nikkei Index pulled back on Thursday. The market lost strength after China’s weaker-than-expected economic data. The Nikkei Index closed the day at 19,804.00—a fall of 0.31%. The iShares MSCI Japan Index (EWJ) fell 0.20% to 55.15 on September 13.
In the next part of this series, we’ll see how European markets performed in the morning session on September 14, 2017.