Asian stocks traded lower again today (October 14th), led by a weak overnight session on Wall Street, as investors reacted to disappointing China inflation data, a day after the release of weak China trade data.
Inflation in the world's second largest economy eased in September, with consumer prices rising 1.6 per cent over a year earlier, driven by a 2.7 per cent rise in food costs.
This is lower than forecasts of a 1.8 per cent rise from a Reuters poll and down on August's two per cent gain.
Yesterday, imports data showed a larger-than-expected slide of 20.4 per cent from a year ago, which sparked concerns about demand.
Overnight, US stocks finished lower, with the Standard & Poor's 500 losing 0.7 per cent to 2,003.69, the Dow Jones industrial average dropping 0.3 per cent to 17,081.89 and the Nasdaq composite falling 0.9 per cent to 4,796.61.
Japan's Nikkei 225 lost two per cent today to finish at 17,865.37 and South Korea's Kospi dropped 0.5 per cent to 2,009.37. Hong Kong's Hang Seng dipped 0.8 per cent to 22,411.20, China's Shanghai Composite Index edged down 0.1 per cent to 3,289.80 and Australia's S&P/ASX 200 fell 0.2 per cent to 5,195.10.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.