14, September 2017

Downbeat Chinese data weighs on Asian markets; US CPI in focus

Asian equity markets retreated from decade highs on Thursday as Chinese economic data came in below expectations, while traders awaited key inflation data from the United States.

Australia ASX -5.60 -0.10% 5,798.40 CLOSED

Shanghai Comp -16.23 -0.48% 3,367.92 OPEN

Hang Seng Index -131.97 -0.47% 27,762.11 OPEN

Nikkei 225 -58.38 -0.29% 19,807.44 CLOSED

TSEC 50 Index +20.69 +0.20% 10,553.57 CLOSED

China’s industrial production increased by 6 percent year-over-year in August, below an initially forecasted 6.6 percent growth rate. Fixed asset investment also missed the estimated value, showing a 7.8 percent advance last month, down from an 8.2 percent eyed.

Retail sales also contributed to a broad disappointment, coming in at 10.1 percent in August on yearly terms, below an estimated read of 10.5 percent.

Meanwhile, Japan’s industrial production index matched expectations for a 0.8 percent decline in July, the same dynamic seen back in June.

Market participants are looking ahead to a day full of relevant releases. First on the line is the Bank of England, which is set to present its monetary policy statement as of 11:00 GMT.

The British regulator is widely expected to keep interest rates unchanged, as well as the volume of its current stimulus program. However, Governor Mark Carney’s speech will be in focus.

Later on, attention will turn to the release of consumer inflation data in the United States. The CPI and core-CPI for August are up at 12:30 GMT, with a forecasted 0.3 percent and 0.2 percent increase respectively.

Market sentiment fell slightly under pressure on Wednesday in the light of a downbeat producer price index, but quickly recovered following reports a tax plan outline will be out on Sept. 25.