Forex Marketz Daily Forex News – Fully Markets Update
Asian equities: China stocks slide on weak price data
HONG KONG — Chinese stocks struggled Wednesday after new price data gave investors another reason to be concerned about fundamental weaknesses in the world’s second-largest economy.
The benchmark Shanghai Composite Index ended the day 0.9% lower at 3,262.441. The Shenzhen Composite Index fell 1.2% to 1,884.155. Also in Shenzhen, the ChiNext index for startups slipped 1.6%, and the small and midsize enterprise index slid 1.1%.
China’s National Bureau of Statistics announced in the morning that September’s producer price index plunged 5.9% from the year-earlier level, the 43rd consecutive month of decline. The consumer price index, meanwhile, was up 1.6%, slightly missing market expectations. The latest data reflects “persistent deflation pressures in China’s economy,” HSBC economist Jing Li said in a report. “More decisive policy easing is needed to counter deflation risks.”
Although there is speculation that the government is planning stimulus measures ahead of a key meeting of China’s Communist party set to start Oct. 26, investor sentiment remains fragile.
Hong Kong’s benchmark Hang Seng Index closed 0.7% lower at 22,439.01. The Hang Seng China Enterprise Index, consisting of mainland Chinese H shares listed in Hong Kong, fell 1% to 10,338.50.
In Hong Kong, financial stocks were among the major losers. Industrial and Commercial Bank of China, China Construction Bank, AIA Group, Hong Kong Exchanges and Clearing, and Bank of East Asia were all down.
Elsewhere in Asia, Japan’s Nikkei Stock Average dropped 1.9% to 17,891.00. South Korea’s benchmark Kospi Index fell 0.5% to 2,009.55, while Taiwan’s weighted index was also down 0.5%, at 8,522.51.
The benchmark indexes in Singapore, Indonesia, India and the Philippines were down during afternoon trading, while stock markets in Malaysia and Thailand were up slightly.
