Asian Shares Tumbled After China Reported a Set of Weak Data
The last session of the week began with the publication of weaker than expected Chinese macroeconomic data. The data on industrial production and retail sales fell short of forecasts, reflecting the negative impact from the US-China trade war. Asian stocks are under pressure after weaker than expected Chinese data.
China’s retail sales grew 8.1% yoy in November, compared with the forecast of 8.8% gain. The growth was the weakest pace since 2003. Meanwhile, growth in industrial output was 5.4% yoy, lower than the 5.9% projected increase. Factory output growth was the weakest in nearly three years.
In the currency market, the euro stuck in its well-worn $1.13-$1.14 range over the past few days, a day after the European Central Bank ended its 2.6 trillion euro bond purchase scheme but pledged to continue reinvesting maturing bonds, thereby avoiding shrinking its balance sheet, for an extended period of time.