Asian shares drop amid China’s sluggish economy
Asian shares fell on Monday, after a release of Chinese data showed sharp retardation in the engine of global growth. The country’s economic slowdown happened just as much of the world rush to curb the spread of the coronavirus’ Delta variant with vaccinations.
Figures on July retail sales, industrial production, and urban investment have all missed forecasts. The figures’ trends are only likely to get worse amid China’s recent tightening in restrictions due to the COVID-19.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched down 0.5%, while Chinese blue chips held on to their 0.2% gains.
In Japan, the Nikkei suffered a 1.7% decline, despite economic growth topping forecasts for the June quarter.
Meanwhile, Nasdaq futures and S&P 500 futures have both taken a 0.2% setback. Likewise, the EUROSTOXX 50 futures and FTSE futures took 0.5% and 0.6% losses, respectively.
In other news, oil prices dipped amid concerns that COVID-19 travel restrictions would affect demand, particularly in China.