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Shares in Asia-Pacific fell on Friday following a fall in US and European equity prices amid concerns over the health of the global economy.
In Japan, Topix lost 1.8%, while China’s CSI-300 index of listed shares in Shanghai and Shenzhen fell 1.1%. The Kospi index in South Korea fell 1.5%. The S & P / ASX 200 in Australia fell 1.4%.
The falls in Asia occurred after the S&P 500 closed 0.9 percent and yields The U.S. Treasury fell to its lowest level since February, as markets examined the economic outlook for the rest of the year.
In Asia, a resurgence of Covid-19 it also remained a “key risk for the region,” said Yeap Jun Rong, IG Group’s market strategist, who noted the Japanese announcement of a state of emergency Thursday before the Tokyo Olympics.
“This may suggest a slower recovery ahead with third-quarter GDP growth likely revised downwards, but a potential economic stimulus package may provide some support for the long-term recovery,” he added.
He minutes of the U.S. Federal Reserve meeting in June, released Wednesday, cited “high” uncertainty about the economic outlook. On Friday, in Asian operations, the yield on the U.S. Treasury at ten years rose to 1.331% after falling in the United States overnight.
In China, economists have forecast gross domestic product growth for the second quarter that will reach 8% next week, but investors feared the country’s rapid recovery could recover. losing momentum.
On Wednesday, the government noted cuts in banks ’reserve ratio requirements, designed to help small and medium-sized businesses, although the measure depends on subsequent actions by the People’s Bank of China.
Chinese data on Friday showed that consumer price inflation remained low at 1.1% in June. The price index to production, which he fired the highest since the financial crisis in May, in a global concentration of commodities, rose by 8.8% year-on-year.
“Compared to inflation risks, Beijing is more concerned about growth pressure,” Jing Liu, senior economist for Greater China at HSBC, said.
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