Asian stocks drift as recession fears rise

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Underwhelming Chinese activity data knock sentiment

Singapore — Asian markets struggled for direction on Tuesday, weighed down by worries over global growth following weak China data that knocked oil prices and commodity-linked currencies.

Just as investors were taking heart from a four-week rally in global equities that pushed markets to their highest in more than three months, Monday’s underwhelming Chinese activity data spanning industrial output and retail sales hit sentiment. Overall, the picture was mixed across Asian bourses on Tuesday, with Tokyo and Taiwan benchmarks little changed, while South Korean stocks gained 0.5%.

The US economy contracted in the first and second quarters, amplifying an ongoing debate over whether the country is, or will soon be, in recession.Eurozone government bond yields fell on Monday with investors concerned about possible recession and amid persistent fears of production cuts in Germany due to potential gas rationing.

 

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