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China’s lower economic growth target rattles Asian markets

05 Mar 2012 Evaluate

All the Asian equity indices barring KLSE Composite ended the day’s trade in the negative terrain on Monday, with resource and technology shares losing ground after China issued a lower economic growth forecast for this year, while energy plays succumbed to selling pressure after a sharp pullback in crude-oil prices Friday. Meanwhile, China shares ended down 0.64 percent on Monday after Premier Wen Jiabo cut the country’s GDP target for 2012, the lowest annual growth target in eight years. Chinese Premier Wen Jiabao said that China aims to deliver economic growth of 7.5 percent in 2012, after eight straight years of keeping the symbolic target at 8.0 percent.  In addition, Japan's Nikkei share average eased further from the closely watched 9,800 mark on Monday as market players said technical indicators pointed to a correction.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,445.00

-15.69

-0.64

Hang Seng

21,265.31

-296.95

-1.38

Jakarta Composite

3,984.90

-19.97

-0.50

KLSE Composite

1,589.22

5.44

0.34

Nikkei 225

9,698.59

-78.44

-0.80

Straits Times

2,991.80

-1.69

-0.06

Seoul Composite

2,016.06

-18.57

-0.91

Taiwan Weighted

8,004.74

-109.70

-1.35

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