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Chinese growth concern drags Asian equities lower

20 Mar 2012 Evaluate

Asian markets snapped the day’s trade mostly in the negative terrain on Tuesday led by losses in Hong Kong and Shanghai on underwhelming corporate earnings. Earlier in this month, China announced that it had lowered its economic growth target to 7.5 percent from 8 percent has spooked investors. In another sign of easing growth in the world’s No. 2 economy, new home prices dropped in 45 Chinese cities in February as the government implemented measures to cool property speculation.

Meanwhile, China Shanghai ended down 1.40 percent on Tuesday on worries over a rebound in domestic inflation after the country raised retail gasoline and diesel prices. China raised retail gasoline and diesel prices by 6 and 7 percent from Tuesday, marking the biggest increase in 33 months, a move that will help refiners reduce heavy losses but is unlikely to hit demand in a big way. While, Seoul Composite fell 0.24 percent as investors cashed in recent gains while waiting for clues about what might give the market some new momentum.

Moreover, stock markets in Japan remained closed for the trade on Tuesday for a national holiday on account of Spring Equinox.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,376.84

-33.35

-1.38

Hang Seng

20,888.24

-227.05

-1.08

Jakarta Composite

4,022.17

-2.56

-0.06

KLSE Composite

1,577.62

4.02

0.26

Straits Times

3,002.73

12.64

0.42

Seoul Composite

2,042.15

-4.85

-0.24

Taiwan Weighted

7,972.70

-71.22

-0.89

Nikkei 225

-

-

-

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