Asia stocks sink as China weakness, rate cut jitters weigh

Singapore, Jan. 17 (BNA): Asian equities fell sharply on Wednesday, led by Chinese stocks after a slew of data pointed to a patchy recovery in the world’s second-biggest economy, while the dollar was near a one-month high as traders dialled back bets of early interest rate cuts.

MSCI’s broadest index of Asia-Pacific shares outside Japan, opens new tab slid 1.8%, touching a fresh one-month low and on course for its steepest one-day percentage fall in over five months, Reuters reported.

 

European stocks were set for a sharply lower open, with the Eurostoxx 50 futures down 0.67%, German DAX futures down 0.55% and FTSE futures 0.71% lower.

 

Investor focus during European hours will be on inflation data from Britain and euro zone that could influence the outlook for the central banks’ monetary policies.

Markets are pricing in 144 basis points (bps) of interest rate cuts from the European Central Bank and 123 bps of easing from the Bank of England this year.

 

In Asia, China stocks fell sharply after data showed China’s economy grew 5.2% in the fourth quarter from a year earlier, missing analysts’ expectations slightly but still ensuring Beijing met its annual growth target of around 5%.

 

 

ZH