Asia suffers China blues; dollar hits 2023 top on yen
By Wayne Cole
SYDNEY (Reuters) — Asian shares struggled on Monday ahead of China data that is likely to amplify 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.
Geopolitics was an added worry after a Russian warship on Sunday fired warning shots at a cargo ship in the southwestern Black Sea, heralding a new stage of the war that could impact on oil and food prices.
MSCI's broadest index of Asia-Pacific shares outside Japan eased another 1.1%, after shedding 2% last week. Japan's Nikkei was off 0.5%, even as exporters drew support from the weak yen.
Chinese blue chips lost 1.1%, 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.
The sour mood saw S&P 500 futures and Nasdaq futures shed early gains to each ease 0.1%.
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.
CONSUMERS KEEP CONSUMING
Figures on U.S. retail sales this week are forecast to show a 0.4% pick up in spending, with risks on the high side thanks
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