HONG KONG : Asian stocks fell on Tuesday as weak Chinese economic data released the previous day continued to weigh on sentiment, while investors were waiting to see if U.S. retail sales data would shine a light on the path for U.S. interest rates.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.63 per cent in the morning session.
Investors are waiting for
stronger signs of inflation cooling, with the readings on U.S. retail sales and U.S. industrial production to be released later on Tuesday. Economists reckon retail sales in June will show a 0.5 per cent rise from May.
“People think of the tug of war between growth and inflation still. This week we have a number of US economic data that will give a clear indication on whether further rate hikes are needed,” said Gary Ng, senior economist at Natixis Corporate and Investment Bank.
The U.S. Federal Reserve, European Central Bank and Bank of Japan are holding policy reviews next week.
After the cancellation of trading on Monday due to a typhoon, Hong Kong stocks were catching up with the fall in Chinese stocks triggered by data showing the post-pandemic bounce in China’s economy was over, with quarter-on-quarter growth of 0.8 per cent in the
second quarter.
The benchmark Hang Seng index dropped 1.74 per cent per centwhile the technology sector fell 1.89 per cent. China A shares were down 0.4 per cent during early session on Tuesday. Japan’s Nikkei, however, eked out a gain of 0.18 per cent.
Source: Reuter
