Asian shares plunge on dwindling China economy

Asian share markets performed poorly during their early Friday trade. Stocks failed to track Wall Street’s overnight rally as a slew of economic figures across the region dampened investors’ enthusiasm.

China’s Shanghai Composite recorded a 0.61% drop, while the Shenzhen Component traded 0.47% lower. The series of declines followed after the country’s Purchasing Managers Index plunged below expectations.

Japan’s benchmark Nikkei dropped 0.50% after a holiday. South Korea’s KOSPI fell 0.89% as the Tokyo Consumer Price Index contracted an annualized 0.2% in April. Australian shares also traded negatively despite the country’s upbeat Producer Price Index.

Investors digested mixed corporate earnings while expecting the United States to sustain its economic support. U.S. President Joe Biden’s newly unveiled stimulus package also contributed to their cautious sentiment.