Chinese stocks fell on Tuesday, with small caps leading the decline as March economic indicators showed the recovery was losing momentum despite stronger-than-expected GDP data.
The CSI300 index, which brings together the major companies listed in Shanghai and Shenzhen, closed with a decline of 1.07%, while the Shanghai index lost 1.65%. Hong Kong’s Hang Seng Index lost 2.12%.
Global stocks fell to two-month lows on Tuesday, after stronger-than-expected U.S. retail sales further strengthened views that the Federal Reserve may not rush to cut interest rates this year. Geopolitical tensions in the Middle East also impacted risk appetite.
Gross domestic product (GDP) grew 5.3% between January and March from a year earlier, according to data published by the Office for National Statistics, well above the expectations of analysts in a Reuters poll of a increased by 4.6% and slightly stronger by 5.2%. expansion in the previous three months.
However, a series of March indicators released alongside GDP data – including real estate investment, retail sales and industrial production – showed that domestic demand remains fragile and is slowing overall momentum.
“I think (the strong GDP) was mainly due to the January-February push, while the March data was quite disappointing,” said Woei Chen Ho, an economist at UOB.
Shares of developers lost 0.4% and those of the tourism sector fell 4.2%. New energy and media companies lost more than 3% each.
CSI 2000 small- and micro-cap stocks fell 7.2%, bringing the weekly decline to more than 10%, after the securities regulator issued rules on Friday to force ineligible companies to delist .
. In TOKYO the Nikkei index fell by 1.94%, to 38,471 points.
. In HONG KONG the HANG SENG index fell by 2.12% to 16,248 points.
. IN SHANGHAI the SSEC index lost 1.65%, to 3,007 points.
. The CSI300 index, which brings together the major companies listed in SHANGHAI and SHENZHEN, fell by 1.07% to 3,511 points.
. In SEOUL the KOSPI index fell by 2.28% to 2,609 points.
. In TAIWAN, the TAIEX index recorded a decline of 2.68%, to 19,901 points.
. IN SINGAPORE the STRAITS TIMES index fell by 1.22% to 3,144 points.
. In SYDNEY the S&P/ASX 200 index fell by 1.81% to 7,612 points.
Source: Terra
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