Asian stocks fell again today (March 11th) amid speculation the Federal Reserve is moving closer to raising interest rates after the release of better-than-expected US government employment data for February last week.
The release of Chinese industrial output data dampened the mood, highlighting the slowest start to a year since 2009, with retail sales below estimates in the January-February period.
This follows the release of mixed Chinese inflation data yesterday, which showed the country's wholesale prices fell 4.8 per cent year-on-year in February, compared to forecasts of a 4.3 per cent fall.
Along with the US rate worries, softer Chinese data "contributed to the souring of the market's mood," Rabobank analysts wrote in a commentary seen by AP. "The current trend in economic activity implies that the official government target for GDP growth set at 7.0 per cent year-on-year is optimistic and supports our view that the People's Bank of China will ease policy further."
South Korea’s Kospi edged down 0.1 per cent to 1,983.50, while Hong Kong’s Hang Seng lost 0.4 per cent to 23,797.92. The Shanghai Composite Index slid 0.2 per cent to 3,279.96 and Australia’s S&P/ASX 200 ended 0.5 per cent lower at 5,793.20. Japan’s Nikkei 225 ended 0.6 per cent up to 18,783.93 as the dollar strengthened against the yen.
StoneX Financial Ltd (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.