Asian stocks lose ground after disappointing Chinese data

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Mainland factory prices shrink at their fastest pace in three years

Tokyo — Most Asian stocks swung lower on Tuesday, weighed by Chinese markets after data showed mainland factory prices shrinking at their fastest pace in three years, while reports of German stimulus plans pushed global bond prices down.

“Globally inflationary pressure remains subdued, so in that sense China is not an outlier,” said Sean Darby, global equity strategist at Jefferies in Hong Kong. Investor focus shifts to the European Central Bank, which is widely expected to introduce a package of monetary easing and stimulus measures on Thursday to offset the effects of an ongoing US-Sino trade war and a global economic slowdown.

“The move in bond yields will affect share prices, but it’s still uncertain how stocks will react. Over the next six months sentiment around global growth will improve, but some of the risks remain to be resolved.” Europe’s largest economy is teetering on the brink of recession, but strict national spending rules have tied policymakers hands on fiscal policy.

 

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