Nikkei drops on China economy data

<p>The Nikkei is down by over one per cent this morning.</p>

Poor economic data from China has led to the Nikkei dropping by more than one per cent.

It was revealed this morning that economic growth in the Asian nation was 7.7 per cent in the first quarter of the year, down from the eight per cent that was forecast by analysts.

This was down from the 7.9 per cent growth recorded between October and December last year and led to the Nikkei dropping by 1.2 per cent in the morning session today (April 15th).

Speaking to Reuters, a Tokyo-based sales trader explained some investors are taking their profits out of the index and this is one of the reasons for the fall in the Nikkei.

It was also noted by the specialist that overseas markets have been "weak across the board" this morning in response to the economic data from China.

The Nikkei reached a five-year high last week, but had started to fall on Friday, when it was down 0.8 per cent down at the midday break and stood at 13,440.44.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.