Asian Stocks Tumble After Slow Pace In China Data

Asian stocks, including the Philippines, tumbled after data showed China’s economy at its slowest pace in four decades last year. Although traders anticipate the country’s growth outlook as it eases on its debilitating zero-COVID measures.

Hong Kong lost more than 1% while Shanghai, Sydney, Seoul, and Singapore also fell into negative territory. Wall Street was closed for a public holiday.

Manila also ended in negative territory with the Philippine Stock Exchange index (PSEi), the main composite index, retreating by 31.44 points or 0.45% to settle at 7,014.04

The sectors that ended in positive territory were mixed with industrial, holding firms, financials, and mining and oil.

Overall value turnover reached ₱10 billion. Market breadth turned out negative with 111 losers and 77 gainers while 38 issues remained unchanged.

Luis Limlingan of Regina Capital said investors pulled their profits after the index breached the 7,000 level and ahead of the restart of US trading after the observance of Martin Luther King Day held every Jan. 16.

Moreover, analysts said China’s 3% expansion was the worst since 1976, excluding the impact of the COVID-19 pandemic in 2020, and sharply declined from the previous year due to widespread lockdowns and containment policies that hammered business activity.

However, it beat the 2.7% forecast and exceeded estimates in the fourth quarter, with an increase in retail sales.

Firms are growing optimistic due to the reopening that signifies a strong rebound this 2023 and helps support the global economy as central banks try to avoid recession caused by soaring inflation and interest rate hikes.

“Looking forward, we expect to see a sustained economic recovery in 2023 as a result of reopening and policy stimulus,” JP Morgan Asset Management Chaoping Zhu said.

However, regional markets struggled to maintain strong momentum in trading.

Source: Philstar