The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Asian stocks stand still on mixed China data
On Thursday, Asian stocks demonstrated mixed performance because market participants were quite cautious when digesting mixed data from China. Meanwhile, the UK pound kept to nine-month maximums because the risk of a no-deal Brexit diminished after a late-night vote.
Eventually, MSCI's index of Asia-Pacific stocks came up with 522.06 points.
As for Japan's Nikkei went up by about 0.5%, while Australian as well as New Zealand shares managed to rally by about 0.2%.
Chinese stocks found themselves in the red after data revealed that China’s industrial output demonstrated the slowest expansion for 17 years. However, retail sales as well as fixed asset investment rallied by more than anticipated.
Besides this, Shanghai's SSE Composite index went down by 1.2%, while the blue-chip CSI 300 declined by nearly 0.4%.
Market participants were keeping an eye open on the data for further prompts regarding the health of the Chinese economy after surge decelerated to 6.6% in 2018.
Notwithstanding China's decelerating surge, Asian markets have demonstrated a decent leap in 2019, with the MSCI index heading north by 10% mostly after the key US financial institution gave up its rate lift plans.
Overnight, Wall Street turned out to be buoyant after American producer prices tacked on in February, which is the latest indication that inflation was still tame. It also affirmed hopes that the US major bank would stick with a patient stance as for future tightening.
However, market experts are still skeptical as for how much further the share leap would run as decelerating global surge, poor corporate earnings along with trade clashes China and America put pressure on risk assets.
Meanwhile, the rejection of a no-deal Brexit pushed the UK pound to $1.3380, which is the most impressive outcome since June 2018.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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