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Bourses mixed as Asia digests China GDP figures

Monday 03:45 BST

What you need to know

  • China stocks fall sharply at open
  • Chinese economy on track for first annual GDP acceleration since 2010
  • Dollar index hovers at 10-month low
  • Oil holds above $49 a barrel

Leading quote

Asia-Pacific markets were mixed as Chinese stocks took a sharp fall ahead of second-quarter gross domestic product data and the dollar index languished at a 10-month low following US inflation and retail sales figures on Friday.

Hot topic

Chinese stocks tumbled at the open as investors positioned ahead of the GDP release. The technology-focused Shenzhen Composite index fell as much as 4.5 per cent before easing to be down 2.7 per cent following the release of the data, while the Shanghai Composite index was down 1.2 per cent. Information technology stocks took the biggest hit in Shanghai, down 3.1 per cent, while financials were up 0.9 per cent.

Data showed the Chinese economy grew 6.9 per cent year-on-year in the second quarter, matching the previous three months and putting the economy on track for its first annual acceleration since 2010.

In Hong Kong, the Hang Seng index was up 0.4 per cent with the information technology sector advancing 0.7 per cent. Australia’s S&P/ASX 200 was flat, while markets in Japan were closed for the Marine Day public holiday.

Forex

The dollar index, a measure of the US currency against a basket of peers, was hovering at 10-month low. The greenback fell as much as 0.6 per cent on Friday as a reading on retail sales and inflation added further weight to Federal Reserve Chair Janet Yellen’s comments to Congress which were perceived as dovish.

The Australian dollar was slightly lower against its US counterpart, at $0.7814, but holding at its strongest levels since May 2015. The Japanese yen edged down 0.1 per cent against the dollar to ¥112.62.

Fixed income

The yield on the 10-year US Treasury was down 1.3 basis points at 2.332 per cent, while that for Australia was up 0.4 basis points at 2.718 per cent. The 10-year Japanese government bond yield was unchanged at 0.066 per cent. Bond yields move inversely to prices.

Commodities

Brent crude was heading for a sixth successive day of gains, holding above $49 a barrel on Monday, up 0.3 per cent at $49.06. West Texas Intermediate, the US marker, was up by the same amount, at $46.66 a barrel.

The price of gold rose 0.2 per cent to $1,231.63 an ounce.

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