Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Stock-market-news/  Asian stocks extend losses after China prices cool
BackBack

Asian stocks extend losses after China prices cool

China's consumer price index rose 1.6% in September from a year earlier, said the National Bureau of Statistics

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8%, while Japan’s Nikkei stock index shed 1.8%. Photo: AFP Premium
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8%, while Japan’s Nikkei stock index shed 1.8%. Photo: AFP

Tokyo: Asian shares tottered on Wednesday, extending losses after consumer inflation in China eased more than expected and heightened concerns about deflationary pressures in the world’s second-largest economy.

China’s consumer price index (CPI) rose 1.6% in September from a year earlier, the National Bureau of Statistics (NBS) said, falling short of expectations of 1.8% and down from August’s 2%.

“Given the lacklustre growth outlook, we continue to expect moderate fiscal stimulus from the central government and continued monetary easing," said economists at Nomura.

Earlier on Wednesday, the Monetary Authority of Singapore said that it will ease its monetary policy for the second time this year by slowing the pace of the Singapore dollar’s appreciation. The move was aimed at reviving an economy that narrowly avoided a recession in the third quarter.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8%, while Japan’s Nikkei stock index shed 1.8%.

Chinese shares were also lower, with the blue-chip CSI300 index and the Shanghai Composite Index both down 0.6%.

Australian shares also extended losses after the China price figures, with the S&P/ASX 200 index down 0.5%, reflecting China’s importance as Australia’s main trading partner.

On Wall Street on Tuesday, stocks dropped, with the S&P 500 touching a fresh seven-week high before ending solidly down. S&P 500 e-mini futures slipped about 0.2% in Asian trading.

Stocks have been underpinned in recent weeks after the US Federal Reserve held off on raising interest rates last month for the first time since 2006. But a main reason for the Fed’s hesitation continued to worry investors, as US policymakers fretted that a global economic slowdown might threaten the US economic outlook.

The US central bank will hold just two more policy meetings in 2015, on 27-28 October and 15-16 December, with expectations fading that the Fed will deliver a hike this year.

The yield on benchmark 10-year Treasuries slipped to 2% in Asian trading from the US close of 2% on Tuesday.

Crude oil prices steadied but remained under pressure after the International Energy Agency rekindled fears that the market would remain over-supplied for at least another year despite falls in output from non-Opec producers.

“We are still in oversupply," said Daniel Ang, an investment analyst at Phillip Futures Pte Ltd.

Brent was nearly flat at $49.25 per barrel, after skidding 1.24% in the previous session, while US crude edged up about 0.1% to $46.70 per barrel after losing 0.9% overnight.

A weaker dollar did not give much help to commodity prices.

The dollar index, which tracks the greenback against a basket of six peers, was down about 0.1% on Wednesday at 94.662, after falling as low as 94.539 on Tuesday, its lowest since 18 September.

The dollar was about 0.2% lower against the yen at ¥119.54, while the euro added about 0.2% to buy $1.1394 after rising to a 3 1/2-week high of $1.1411 overnight. Reuters

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 14 Oct 2015, 08:49 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App