Asia suffers China hangover; dollar scales 2023 top on yen

Sydney, Aug 14 (BNA): Asian shares slid on Monday as China’s property woes amplified the case for serious stimulus even as Beijing seems deaf to the calls, while rising Treasury yields lifted the dollar to a 2023 peak on the embattled yen.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan lost another 1.7%, after shedding 2% last week. Japan’s Nikkei was off 1.3%, even as exporters drew support from the weak yen, Reuters reported.

 

Chinese blue chips fell 1.2%, on top of a 3.4% decline last week, amid a string of disappointing economic news culminating in a dire report on new bank loans in July.

 

Figures on retail sales and industrial output are due Tuesday and analysts assume they will underwhelm, keeping downward pressure on the yuan.

 

Adding to concerns about the deteriorating health of the country’s debt-laden property developers was news two Chinese listed companies had not received payment on maturing investment products from Zhongrong International Trust Co.

 

China’s Country Garden, the country’s top private property developer, is also set to suspend trading of its 11 onshore bonds from Monday.

 

EUROSTOXX 50 futures slipped 0.4% and FTSE futures 0.2%. The sour mood saw S&P 500 futures and Nasdaq futures shed early gains to each ease 0.2%.

 

That followed losses on Friday when surprisingly high readings on U.S. producer prices tested market optimism that inflation would cool enough to avoid further rate hikes.

 

 

 

M.I.