Asian stocks declined, after capping their worst week since 2011, as muted Chinese inflation data added to signs of faltering growth in the world’s second-largest economy.
The MSCI Asia Pacific excluding Japan Index slipped 0.8 percent to 379.13 as of 8:01 a.m. in Hong Kong. Markets in Tokyo are closed for a holiday. Turmoil in China’s markets rippled around the world last week as the securities regulator scrapped an equity circuit breaker after just four days and the central bank set a weaker yuan fix for eight days in a row, escalating fears of a global currency war.
With equity markets in China and Hong Kong yet to open, futures on the Hang Seng Index and contracts on the FTSE China A50 Index dropped at least 1.1 percent in their most recent trading. Chinese stocks gained in volatile trading on Friday after the government suspended the controversial circuit breaker, the central bank ended the eight-day run of reductions to the yuan’s reference rate and state-controlled funds were said to be buying equities.
China’s consumer price index rose 1.6 percent in December from a year earlier, the National Bureau of Statistics said on Saturday. That followed a gain of 1.5 percent in November. The producer price index fell 5.9 percent for a fifth straight month, compared with economists’ estimate for a 5.8 percent decline.
Australia’s S&P/ASX 200 Index fell 1.7 percent and New Zealand’s S&P/NZX 50 Index lost 0.8 percent. South Korea’s Kospi index slipped 1.1 percent.
Futures on the Standard & Poor’s 500 Index dropped 0.7 percent on Monday. The underlying U.S. equity benchmark index retreated 1.1 percent on Friday, capping its worst five-day start to year on record, as investors found little relief in moves by China to restore calm and data that showed resilience in the U.S labor market.
Employers added 292,000 workers to payrolls in December, exceeding the highest estimate in a Bloomberg survey and putting the gain for all of 2015 at 2.65 million, a Labor Department report showed on Friday.
Source : Bloomberg