Asia Markets: Asian markets mixed after decades-worst GDP growth by China
Asian markets were mixed in early trading Friday, as new data showed worse-than-expected economic growth in China.
China’s economy expanded at a 6% rate year-over-year, official data showed, less than the median 6.1% forecast by economists polled by the Wall Street Journal, and the worst pace of growth since the first quarter of 1992. It was the second straight month of weaker year-on-year data. China expects annual GDP growth of 6% to 6.5% this year, down from last year’s 6.6% growth.
Still, investors appeared relieved the numbers weren’t worse, considering the ongoing tariff war with the U.S. and signs of a global slowdown.
“While the GDP is testing the lower bound of the official annual 6-6.5% target, today’s data suggests there is a very limited risk of breaching the lower bounds of that target this year,” Stephen Innes, Asia-Pacific market strategist for AxiTrader, wrote in a note. “While risk asset is not flashing all green, markets can breathe a sigh of relief.”
Japan’s Nikkei NIK, +0.26% rose 0.6% as a core inflation reading fell to 0.3% in September, the lowest level since April 2017, but in line with analysts’ expectations. Hong Kong’s Hang Seng Index HSI, -0.09% fell 0.1% giving up early gains, while the Shanghai Composite SHCOMP, -0.59% fell 0.2% and the smaller-cap Shenzhen Composite 399106, -0.45% was last about flat. South Korea’s Kospi 180721, -0.28% was flat as well, while benchmark indexes in Taiwan Y9999, -0.16% , Singapore STI, -0.37% , Indonesia JAKIDX, +0.20% and Malaysia FBMKLCI, -0.26% were little changed. Australia’s S&P/ASX 200 XJO, -0.57% slipped 0.6%.
Among individual stocks, robotics maker Fanuc 6954, +2.21% gained in Tokyo trading, along with Rakuten 4755, +2.33% and Fast Retailing 9983, +1.93% . In Hong Kong, Sunny Optical 2382, +1.36% and AIA 1299, +0.13% gained, while property developers such as Wharf Real Estate 1997, -1.22% retreated after big gains Thursday. Kia Motors 000270, +0.49% gained in South Korea, while Westpac WBC, -1.15% and Commonwealth Bank CBA, -0.92% slipped in Australia.