HONG KONG : Asia stocks fell on Wednesday after weak economic data in China and Europe heightened concerns over global growth, while the dollar firmed as investors weighed the outlook for U.S. interest rates.Australia's S&P/ASX 200 fell 0.55 per cent even as second-quarter gross domestic product beat forecasts with a 0.4 per cent rise.A private-sector survey on Tuesday showed China's services activity expanded at the slowest pace in eight months in August, reflecting weak demand.
"The China decline was bigger than expected," said Redmond Wong, Greater China market strategist at Saxo Markets. "The Europe data were rather weak. We think there is still a high chance to have a mild recession in the U.S. and Europe toward the end of the year or beginning of next year."The yield on the benchmark U.S. 10-year Treasury note rose 9 basis points to 4.26 per cent after reaching 4.268 per cent, its highest since Aug. 25, while the U.S. dollar rose to a near six-month high against a basket of currencies.
"[The] Fed is a focus for us, we think they have more work to do with potential for U.S. rates to continue heading higher," said John Milroy, investment adviser at Ord Minnett.