Asian shares weaken slightly on China deflation risk

Sydney, Aug. 9 (BNA): Asian shares were on the defensive on Wednesday after data showed that China slipped into deflation in July, a negative sign for the world economic growth outlook although it could help dampen on inflationary forces globally.

 

European futures were up across the board, with EUROSTOXX 50 futures rising 0.9% and FTSE futures 0.5%, after Italy said its new tax on banks would not amount to more than 0.1% of total assets, soothing nerves, Reuters reported.

 

S&P 500 futures climbed 0.1% while Nasdaq futures rose 0.2%.

 

In Asia, the MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.2% higher, following a 1.2% tumble a day earlier. Japan’s Nikkei slipped 0.4%.

 

Closely watched China data on Wednesday showed consumer prices fell 0.3% in July from a year ago, the first decline since February 2021, although it was slightly better than the forecast of a 0.4% drop. Producer prices fell for a 10th consecutive month.

 

The data followed disappointing trade figures a day earlier that fuelled concerns about the global economic outlook.

 

 

M.I.