Asia report: Most markets retreat amid slew of China data

Most markets in Asia finished lower on Monday, as investors sifted through a tsunami of fresh data out of China, simultaneously ignoring the strong finish seen on Wall Street at the end of last week.

Markets in Japan were closed for a holiday on Monday, as the yen weakened 0.03% against the dollar to last trade at JPY 112.41.

On the mainland, the Shanghai Composite was down 0.61% at 2,813.92, and the smaller, technology-heavy Shenzhen Composite fell 0.1% to 1,602.84.

Fresh data out of Beijing on Monday showed GDP growth slowing slightly in the People’s Republic, with second-quarter growth put at 6.7%, compared to the 6.8% seen in the first quarter.

It was still in line with market expectations as polled by Reuters, however, and was of little surprise to markets given the impact of China’s trade tussle with the US and its crackdown on dodgy credit would not have any real impact until the second half of the year.

Growth jumped to 1.8% quarter-on-quarter in the second quarter, from 1.4% in the first, and above the consensus of 1.6%.

“We had expected growth of at least 1.5% quarter-on-quarter, highlighting upside risks, namely because on-quarter growth has been weak in the last three quarters, so a further weak print would have meant the year-on-year rate had to be pulled down,” said Pantheon Macroeconomics chief Asia economist Freya Beamish.

Fixed asset investment growth, meanwhile, was at a record low of 6.0% for the first half of 2018, and industrial output for June was in line with the slowest growth rate in more than two years, also at 6.0%.

On the retail sales front, growth picked up to 9.0% year-on-year in June from 8.5% in May, above the consensus of 8.8%.

In real terms, growth in June was 7.0%, up from 6.8% in May.

South Korea’s Kospi was off 0.39% to 2,301.99, while the Hang Seng Index in Hong Kong eked out gains of 0.05% to settle at 28,539.66.

Bank plays were on the back foot in Seoul, while carmakers were ahead, with Hyundai Motor managing to end the session 2.86% higher.

Oil prices fell, with Brent crude last down 2.99% at $73.14 and West Texas Intermediate retreating 2.41% to $69.34 per barrel.

In Australia, the S&P/ASX 200 was 0.43% lower at 6,241.50, led lower by the healthcare subindex.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.5% at 8,980.31, led lower by medical devices maker Fisher & Paykel Healthcare, which lost 1.8%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.1% at AUD 1.3464, and the Kiwi advancing 0.31% to NZD 1.4738.