China
has released its first quarter economic data of gross domestic product figure,
which made reaction between investors. Due to sudden release of such kind of
data Asian market had to fight hard to get on direction.
Based
on retail sales on march compared with a year earlier, according to Reuters
poll it was expected that it will fall 1.6%. But surprisingly it fell more than
3.5% comparing to the last year.
During
covid pandemic years, mainland China’s city shanghai was one of the mostly
affected city. After reopening of market shanghai started growing up so fast.
On Monday, National bureau of Statistics China showed faster than expected GDP
growth in the first quarter.
It
was expected to reach at 4.4% growth but it rose 4.8%. The Shenzhen Component
climbing 0.368% to 11,691.47 but Shanghai composite down to 0.49% to 3195.52 which
results mixed closing of mainland Chinese stock.
Fast
retailing declined 1.25%, and shares closes 26,799.91 which is fall of Nikkei 225
in 1.08% in Japan. The topic index shed 0.86% to 1880.08.
On Monday, Head of Asia economics and strategy at Citi Global markets Asia “Johanna Chua” told CNBC “We know that a big driver of the consumption weakness is the zero-Covid policy”.
Johanna
Chua also added “We have president Xi Jinping’s statement. In Hainan indicating
that persistence is the key, so they are going to stick with this. As long as
that happens, this will continue to have a drag on services activity and
obviously jobs related to services and will also damage consumption.”
On
Monday, analysts from OCBC treasury research wrote “This is the smallest cut
since China unveiled the reform on reserve requirement ratio 1998.” Because on Monday
moves came from investors and they digested the Friday announcement of people’s
bank of China for a reserve requirement ratio cut on April 25.
The
RRR is the amount of funds banks need to hold in reserve. MSCI’s broadcast
index of Asia pacific shares outside Japan fallen 0.72% and South Korea’s Kospi
declined 0.11%on the day to 2693.21. Markets in Hong Kong and Australia was
closed on Monday due to holiday. On Friday, despite anticipation for more
stimulus Chinese central bank unexpectedly held steady on a key interest rate.
OIL & CURRENCY EXCHANGES
US crude futures shed 0.37% to $106.55
per barrel. During Asia trading hours oil prices were lower in the afternoon
with international benchmark Brent crude futures down 0.29% to $111.38 per
barrel.
Australian dollar was at $0.7364 lower
as compared with levels above $0.747 seen last week. The us dollar index which
tracks the greenback against a basket of its peers was at 100.623 continuing
its upward trek after a recent bounce from below 100. The Japanese yen was
traded at 126.54 per dollar after weakening last week from below 125 against
the greenback.
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