Asian stocks hit 9-month lows on worries over China economy, US rates
MSCI's broadest index of Asia-Pacific shares outside Japan slid to 495.03, its lowest since Nov. 29. It was last down 1.14% at 497.11, with the index down 8% for August and set for its worst monthly performance since September.
Losses were broad-based across Asia Pacific on Thursday, with Japan's Nikkei and Australia's S&P/ASX 200 index down 1%. China's blue-chip CSI 300 Index was 0.45% lower, while the Hong Kong's Hang Seng Index fell 1.7% and was at near nine month lows. China stocks have been in the doldrums as a series of economic data has laid bare the stuttering post-pandemic recovery, with investors so far unimpressed with moves from policymakers.
«Investors looking for more aggressive support from policymakers amid soft activity have been disappointed as the recent incremental measures haven't been sufficient to restore confidence,» said Taylor Nugent, an economist at NAB. Adding to the worrying landscape for the world's second biggest economy is the deepening property sector crisis. Missed payments on investment products by a leading Chinese trust firm and a fall in home prices have enhanced the gloom.
Overnight, Wall Street ended lower after minutes from the Fed's July meeting showed officials were divided over the need for more interest rate hikes. «Some participants» cited the risks to the economy of pushing rates too far even as «most» policymakers continued to prioritise the battle against inflation. The U.S.
central bank hiked rates by 25 basis points at the July meeting after standing pat in June. Fed Chair Jerome Powell said at the time the economy still needed to slow and the labor market to weaken for inflation to «credibly» return to the U.S. central bank's 2% target.
Read more on economictimes.indiatimes.com
