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Asian stocks baffle by weak Chinese industry data

Asian stocks showed weak results in early trading on Thursday, as optimism decreased after the British parliament rejected Brexit without a deal. Market sentiment was exacerbated by the weak economic data on China’s industry and by a Donald Trump’s warning that the United States is in no hurry to talk about a trade agreement with China.

asian stocks tumble 1403

The China’s National Bureau of Statistics said on Thursday that industrial output slowed more than one expected in January and February, which means that the pace of development of China’s economy has slowed. Industrial value-added production in China grew by 5.3 percent for the same period compared with 5.7 percent last year, although a 5.5 percent increase was expected. It is the slowest growth rate for 17 years, according to Thursday’s data.

This readings caused a drop in markets in mainland China. After an early take-off, the Shanghai Composite Index fell by 1.20 percent to 2,990.69 at 7.31 GMT, and the Shenzhen Composite Index dropped by 2.31 percent to 1,618.26. Shares in Hong Kong fell 0.11 percent to 28,779.67.

The Japanese Nikkei rose by 0.5 percent in early trading, but it changed direction, having decreased by 0.02 percent to 21,287.02, while South Korea’s Kospi showed a 0.34 percent increase to 2,155.68.

Shares in Taiwan went down by 0.24 percent, whereas Singapore’s securities increased their value by 0.07 percent to 3.197.53. The Australian S & P / ASX 200 index was also positively tuned, having jumped 0.30 percent to 6.179.6.

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