The Wednesday morning saw Asian stock markets falling following the release of weak Chinese data. It enforced tensions regarding dipping financial growth globally. Moreover, the stimulus tapering by several Central Banks and growing COVID-19 cases worldwide are swelling the already fraught nerves of investors.
The MSCI’s broadest index edged down by 0.82 per cent. It extended earlier losses soon after the Chinese data got released in the market. Japan’s Nikkei lost 0.89 per cent following the negative sentiment. Interestingly, it had moved closer to a 31 year high a day before.
A shred of Chinese economic data exhibited that businesses struggled to survive and thrive in the ongoing situation. However, the intermittent lockdowns have jeopardised the global economy due to the new coronavirus variant—furthermore, the increasing costs of the raw materials and supply bottleneck have been deterrent.
The growth of the sales missed out the numbers of August 202. Also, it let down the expectations of analysts. Moreover, the industrial output slowed down simultaneously since July, which dampened the hopes of investors.
The following signals underlined the stifling economy of China. Interestingly, it added to Beijing’s expectations to offer stimulus to support the weakening condition in the coming months.
Notably, the data led to blue-chip stocks in China falling by 0.73 per cent.
Meanwhile, the Hong Kong Benchmark lost 0.87 per cent due to the casino stocks. Notably, the gaming hub of Macau is going to rebidding the next year. The casinos are worth multi-billion dollars, and there would be a consultation ahead of the event. At one point, Wynn Macau shares lost almost 30 per cent of their value.
Moreover, the market also focused on the Federal Reserves’ timeline for tapering the asset stimulus. Eurizon Asset Management CEO, Sean Debow stated that there was uncertainty in the market as investors were waiting to see steps taken by Federal Reserves over the tapering on asset purchasing. In addition, it was dependent on the state of the labour. He further added that clarity would come up in the upcoming weeks over the matter.
Meanwhile, the inflation in the United Kingdom rose nine months high. Interestingly, it climbed the highest in a month in the past 24 years. The low inflation means Fed would be under less stress to stall its activity of asset purchasing from the market.