In Asian markets, a US tech rally boosted sentiment, but disappointing data from China raised concerns about the country’s economy. The Nasdaq saw gains of over one percent, driven by large tech companies such as Amazon, Google parent Alphabet, and Meta Platforms. Tokyo’s market climbed 0.6 percent, supported by a surge in tech firms and strong export data. However, other markets gave up their early gains, with Hong Kong closing down 1.0 percent and Shanghai off 0.1 percent as weak figures from Beijing failed to reassure investors. European markets also fell, with London down 1.1 percent, Frankfurt off 0.7 percent, and Paris 0.8 percent lower.
Concerns about China
Chinese data released on Tuesday showed slowing growth in July retail sales and industrial production falling short of analyst expectations. Beijing’s decision to stop reporting its youth unemployment rate, which hit a record 21.3 percent in June, raised concerns about transparency. “China reported July data that broadly missed expectations. The lack of transparency continues to irk investors,” said Stephen Innes of SPI Asset Management.
The central bank of China unexpectedly cut its one-year loan rate (MLF), indicating a need to boost the economy. The latest data puts pressure on Beijing to take further measures to support an economy that has struggled to recover from the impact of Covid-19.
In foreign exchange markets, the Russian ruble traded around 97 to the dollar after Russia raised its key interest rate to 12 percent. The dollar also remained strong against the Japanese yen.
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