Asia Shares Drop Substantially As Result Of China’s Reports Of Weak Data
Index Performances
Asia stocks took a downward turn on Monday owing to the data release of a considerably weaker-than-projected Chinese trade over the course of the weekend. The main Chinese markets which were closely watched due to the trade dispute between China and the U.S. slipped on the trading day.
According to reports, Shanghai composite fell by 0.82% and it closed at nearly 2,584.58 and the Shenzhen composite fell 1.345% and it closed at about 1,332.53. The Hang Seng index in Hong Kong fell with about 1.22% in the final trading hour due to the fall in the shares of China Construction Bank listed on the index. The shares of the Bank fell by 1.39% while Tencent also shed 0.9%.
Dwindling Data
China reported weaker-than-projected imports and exports in November which stood as an indication of slower domestic and global demand. It also increased concerns about the possibility that China may have to put in some measures to enable it to boost its growth.
According to data, its exports for November climbed 5.4% from one year earlier and that was obviously below the expected 10% jump by analysts. It also stood as its weakest performance ever since it had a 3% contraction back in March. Also, the data revealed that there was a significant slowdown in the yearly growth for China’s exports to all its major partners.
Moving to its import growth, it came in at 3% and it was the slowest ever since 2016 and also a fraction lesser than the anticipated 14.5%. For the second time, there was a fall in iron ore imports and that reflected the dwindling restocking demand amid narrowing of profit margins. According to analysts, the country’s trade data for November performed below expectation by a wide margin.
They added that the softer growth of exports was a reflection of a slower-paced global growth as well as the effect of America importers who front-load shipments as a means of avoiding increased tariffs. On the other hand, the falling growth of imports indicates a softening of domestic demand.
Performance In Other Asian Regions
Nikkei 225 of Japan also fell by 2.12% and it closed at 21,219.50. Topix index fell by 1.89% and closed at 1,589.81. Japan Display’s shares fell by 10.61% after it earlier announced that it didn’t plan to reduce the production of smartphone panels this month. That followed reports that it actually had plans to cut production. Also, Pioneer plummeted by 27.27%.
Kospi of South Korea also dropped by 1.06% and closed at 2,053.79. On the index, SK Hynix’s shares dropped by 1.95%. In Australia, ASX 200 closed the day at 2.27% lower bringing it to 5,552.50 and virtually all sectors on the index recorded losses. Down Under also fell by 3.12% as the shares of the Big Four Australia banks declined. Commonwealth Bank of Australia shed 2.98%, National Australia Bank went down by 2.54%, Australia and New Zealand Banking Group fell by 4.16% and Westpac fell by 3.38%.
According to Rakuten Securities, Australia, the geo-Political factors are again ready to influence the markets when customarily traders are expecting a slow-down as the conditions that accompany Christmas market trading begins to unfold.
China Protests Arrest of Huawei CFO
Reports have it that on Sunday, China summoned Terry Branstad to protest the arrest of Meng Wanzhou, the chief financial officer of Huawei. According to sources, Le Yucheng, the Vice Foreign Minister lodged strong protests and solemn representations with the Ambassador over the arrest of Meng. The allegation against her was that she was suspected to have tried to evade the U.S. trade curbs placed on Iran and she was therefore detained in Canada on the 1st of December.
John McCallum, the Canadian Ambassador also got summoned on Saturday in relation to the detention of Meng and was warned about grave consequences likely to follow if the CFO of Huawei wasn’t released.
Huawei happens to be one of the biggest phone makers worldwide and the Chinese phone maker has been coming under pressures from the U.S. For instance, there are restrictions on its sales of telecom equipment in the country because of what has been described by American officials as concerns about the nation’s security.
Beyond its potential to influence the activities in the tech space, this arrest may also affect the current trade war between US and China. Sources claim that the stocks of companies connected to Huawei experienced decline on Monday trading day. ACC technologies in Hong Kong fell by 0.69%, Chinasoft International, a company has Huawei as one of its strategic shareholders fell with over 4%. However, Sunny Optical which produces some of Huawei phones lenses was able to rise by 2.75%.
More in Business
-
`
Streaming Giant Netflix Faces Yet Another Challenge
In the ever-evolving landscape of streaming entertainment, Netflix, once the unchallenged king of digital content, now faces a complex puzzle beyond...
December 1, 2023 -
`
Signs You Should Quit Your Current Job & Move On
You Don’t Feel Comfortable at Work Imagine spending the majority of your waking hours in a place where you feel uneasy,...
November 20, 2023 -
`
How to Adjust and Renew Your Portfolio
Investing in the financial world is like navigating an ever-changing landscape—constantly evolving, always shifting. The key to staying on track? Regularly...
November 18, 2023 -
`
Dr. Dre’s Divorce With Nicole Young: A Closer Look
When the beats of old-school hip-hop start bumping, Dr. Dre’s name reverberates in fans’ minds worldwide. Born as Andre Young, this...
November 12, 2023 -
`
Why Branded Content Is the Best Way to Connect With Your Audience
Have you ever found yourself deep in a compelling article or engrossed in a video series, only to later discover that...
November 5, 2023 -
`
Why the Gender Pay Gap Could Be Getting Worse | New Research Findings
At a time when women are making significant strides in various professional arenas, a new report throws light on a trend...
October 28, 2023 -
`
What Is a Bull Market and How Can Investors Benefit From One?
In finance, the term “bull market” is frequently used to describe a period of optimism, rising asset prices, and investor confidence....
October 19, 2023 -
`
A-List Power Couples Where the Women Make More Money
In an era of shifting gender roles and evolving definitions of success, it’s increasingly common to find celebrity couples where the...
October 15, 2023 -
`
Massive Price Cuts: Tesla Only Witnesses ‘Modest’ Sales Gain in China
Cutting Down Prices, But Not Cutting the Mustard? Summer 2023 brought with it a promise of sunshine and relaxation. For Tesla...
October 8, 2023
You must be logged in to post a comment Login