Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Asia stocks tumble on China trade data; Nikkei falls 1% after GDP

Published 03/10/2014, 03:51 AM
Updated 03/10/2014, 03:51 AM
Asia stocks fall sharply on dismal China trade data

Investing.com - Asian stock markets fell sharply on Monday, as growing concerns over the health of China’s economy dampened demand for riskier assets.

During late Asian trade, Hong Kong's Hang Seng Index plunged 1.8%, China’s Shanghai Composite Index sank 2.86%, Australia’s ASX/200 Index closed 0.93% lower, while Japan’s Nikkei 225 Index ended down 1.01%.

Data released over the weekend showed that Chinese exports collapsed 18.1% in February from a year earlier, disappointing expectations for a 6.8% increase.

The significant decline in China’s exports led to a deficit of $22.98 billion last month, compared to a surplus of $31.86 billion in January. Analysts had expected a surplus of $14.5 billion in February.

A separate report showed that consumer price inflation in China rose 2% in February from a year earlier, in line with expectations, while producer price inflation declined 2%, compared to forecasts for a 1.9% drop.

Markets in mainland China and in Hong Kong came under heavy selling pressure as shares in the financial sector sold off amid worries about domestic bond defaults.

In Hong Kong, China Construction Bank lost 1.7%, China CITIC Bank shed 1.8%, while Industrial and Commercial Bank of China and China Minsheng Bank slumped 1.5% and 2.5%.

Meanwhile, in Tokyo, the Nikkei retreated after data showed that Japan’s economy grew by 0.2% in the final three months of 2013, down from a preliminary estimate of 0.3%.

On an annualized basis, the country’s gross domestic product rose 0.7% in the fourth quarter, down from an initial estimate of 1%.

The yen strengthened against the U.S. dollar, with USD/JPY falling to a daily low of 102.92, moving off the previous session’s high of 103.75.

Automakers Toyota and Honda saw shares fall 1.15% and 2% respectively, while index heavyweights Fanuc and Fast Retailing dropped 2.6% and 1.85%.

Elsewhere, in Australia, the ASX/200 Index ended lower as miners came under pressure amid concerns over a slowdown in Chinese demand for raw materials.

Copper producers sold off as prices of the industrial metal fell to a seven-month low. Atlas Iron and Fortescue Metals Group plunged 10.15% and 9.4%, while BHP Billiton dropped 4.15%.

Australian commodity producers are heavily reliant on Chinese demand for raw materials.

Looking ahead, European stock market futures pointed to a mildly lower open. The EURO STOXX 50 futures pointed to a loss of 0.25% at the open, France’s CAC 40 futures shed 0.1%, London’s FTSE 100 futures indicated a decline of 0.3%, while Germany's DAX futures slumped 0.5%.

Across the Atlantic, U.S. equity markets also pointed to a weaker open. The Dow Jones Industrial Average futures pointed to a fall of 0.3%, S&P 500 futures inched down 0.3%, while the Nasdaq 100 futures indicated a decline of 0.25%.

The Labor Department said Friday that the U.S. economy added 175,000 jobs in February, well above expectations for 149,000 new jobs. The unemployment rate ticked up to 6.7% from 6.6% in January, as more people joined the workforce.

The upbeat jobs report eased concerns over soft U.S. economic data seen in the past few months and underlined the view that the Federal Reserve is likely to continue to gradually taper its bond-buying program.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.