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Asian markets tumble on weak Chinese economic data | Asian markets tumble on weak Chinese economic data |
(about 3 hours later) | |
Asian shares fell on Monday after both China and Japan released disappointing economic data, worrying investors about a slowdown in the region. | Asian shares fell on Monday after both China and Japan released disappointing economic data, worrying investors about a slowdown in the region. |
Both Hong Kong's Hang Seng index and the Shanghai Composite fell by 2%, while Japan's benchmark Nikkei 225 closed down 1%. | Both Hong Kong's Hang Seng index and the Shanghai Composite fell by 2%, while Japan's benchmark Nikkei 225 closed down 1%. |
On Monday, Japan revised down its 2013 growth estimates and reported a record deficit. | On Monday, Japan revised down its 2013 growth estimates and reported a record deficit. |
Over the weekend, China said exports plunged 18.1%, surprising analysts. | Over the weekend, China said exports plunged 18.1%, surprising analysts. |
That data led to a broad Asian sell-off, with China's CSI 300 Index falling to its lowest since 2009. | That data led to a broad Asian sell-off, with China's CSI 300 Index falling to its lowest since 2009. |
Australian shares shed 1% of their value following the data release, dragged down by losses in mining and other resource stocks, which are heavily dependent on China's commodities demand. | Australian shares shed 1% of their value following the data release, dragged down by losses in mining and other resource stocks, which are heavily dependent on China's commodities demand. |
BHP Billiton fell 3.2%, Rio Tinto dropped 4.6% and Fortescue Metals tumbled 10% in Sydney trading. | BHP Billiton fell 3.2%, Rio Tinto dropped 4.6% and Fortescue Metals tumbled 10% in Sydney trading. |
Concerns about China's economy also caused copper to drop to its lowest level in more than seven months. | Concerns about China's economy also caused copper to drop to its lowest level in more than seven months. |
China is the biggest buyer of the red metal, which is used both in electronics production and other manufacturing industries. | China is the biggest buyer of the red metal, which is used both in electronics production and other manufacturing industries. |
The price of Chinese steel and iron ore futures dipped about 6% on Monday after publication of Chinese export data. | |
Lower demand from the domestic construction industry has added to a slide in commodities prices. | |
Sluggish data | Sluggish data |
China also reported a rare $22.98bn trade deficit in February, compared with a surplus during the same period last year. | China also reported a rare $22.98bn trade deficit in February, compared with a surplus during the same period last year. |
Some analysts speculated that the figures could be distorted because of the impact of the Chinese Lunar New Year holiday. | Some analysts speculated that the figures could be distorted because of the impact of the Chinese Lunar New Year holiday. |
It also reported a slowdown in inflation, to 2% in February from 2.5% in January - the slowest rate in 13 months. | It also reported a slowdown in inflation, to 2% in February from 2.5% in January - the slowest rate in 13 months. |
The sluggish economic data come as the Chinese government said during its annual meeting that it was targeting a growth rate of 7.5% in 2014. | The sluggish economic data come as the Chinese government said during its annual meeting that it was targeting a growth rate of 7.5% in 2014. |
However, China's finance minister Lou Jiwei later said that it would be acceptable if the government slightly missed this target. | However, China's finance minister Lou Jiwei later said that it would be acceptable if the government slightly missed this target. |
"Whether GDP [gross domestic product] growth is to the left or to the right of 7.5%, that is not very important," said Mr Lou, according to Reuters. | "Whether GDP [gross domestic product] growth is to the left or to the right of 7.5%, that is not very important," said Mr Lou, according to Reuters. |
He added that what was most important was job creation. | He added that what was most important was job creation. |
Separately, Japan revised its 2013 economic growth from 1% to 0.7%, and also reported its largest deficit since 1985. | Separately, Japan revised its 2013 economic growth from 1% to 0.7%, and also reported its largest deficit since 1985. |