Space News from SpaceDaily.com
Asian markets retreat as China pledges fail to spark excitement
ADVERTISEMENT


Hong Kong, Dec 13 (AFP) Dec 13, 2024
Asian markets fell Friday as China's latest vows to boost the beleaguered economy failed to stir much excitement, while traders looked ahead to a key Federal Reserve policy meeting next week.

A tepid week was on course for a damp finish, with Wall Street offering a negative lead after fresh data pointing to a pick-up in inflation.

Hong Kong and Shanghai both tumbled as investors shrugged at Beijing's pledge to introduce measures aimed at "lifting consumption vigorously" as part of a drive to reignite growth in the world's number two economy.

President Xi Jinping and other key leaders said they would implement a "moderately loose" monetary policy, increase social financing and reduce interest rates "at the right time".

The annual Central Economic Work Conference was being closely watched for signs of more stimulus, though the announcement -- which included stabilising foreign trade and supporting the troubled property sector -- was unable to boost sentiment.

The gathering came after Beijing began unveiling in September a raft of policies to reverse a growth slump that has gripped the economy for almost two years.

Julian Evans-Pritchard of Capital Economics said it remained unclear how big a boost there would be, adding that, "while we may get a near-term stimulus bounce, we're still not convinced that policy support will prevent the economy from slowing further next year".

And strategists at Bank of America Global Research said: "We await more evidence of implementation to assess the impact of such an indicated turnaround".

Shares fell in Tokyo even as the Bank of Japan's closely watched Tankan survey indicated a slight increase in confidence among Japan's major manufacturers.

Sydney, Taipei, Bangkok, Jakarta and Manila also dropped while Singapore, Mumbai and Wellington edged up.

Seoul reversed early losses to extend to four days a rebound from the selling sparked by South Korean President Yoon Suk Yeol's brief martial law declaration, as the focus there turns to a second impeachment vote planned for Saturday.

The advance helped the Kospi briefly rise back above the level it sat before Yoon's December 3 shock.

All three main indexes in New York closed in the red, with investors taking to the sidelines ahead of the Fed's Wednesday gathering, when it is tipped to cut borrowing costs for the third time.

However, there is growing concern that with inflation still above the bank's target -- and president-elect Donald Trump pledging to cut taxes and impose tariffs -- officials will not make as many next year as initially hoped.

"There is a risk that inflationary pressures could change the central bank's plans," said Charu Chanana, chief investment strategist at Saxo Markets.

"Recent (consumer price index) reports show that inflation is still sticky, and if Trump's policies -- like higher fiscal spending or tariffs -- are enacted, inflation could re-accelerate.

"This would give the Fed less room to ease, potentially leading to a hawkish surprise for markets."

The euro was stuck around two-year lows after the European Central Bank cut rates and president Christine Lagarde warned the eurozone economy was "losing momentum", cautioning that "the risk of greater friction in global trade could weigh on euro area growth".

The currency was also being dragged by uncertainty in Germany and France following the collapse of the governments of both countries, the eurozone's biggest economies.


- Key figures around 0710 GMT -


Tokyo - Nikkei 225: DOWN 1.0 percent at 39,470.44 (close)

Hong Kong - Hang Seng Index: DOWN 1.9 percent at 20,014.07

Shanghai - Composite: DOWN 2.0 percent at 3,391.88 (close)

Euro/dollar: DOWN at $1.0463 from $1.0468 on Thursday

Pound/dollar: DOWN at $1.2661 from $1.2669

Dollar/yen: UP at 152.79 yen from 152.68 yen

Euro/pound: UP at 82.63 from 82.59 pence

West Texas Intermediate: UP 0.1 percent at $70.06 per barrel

Brent North Sea Crude: FLAT at $73.41 per barrel

New York - Dow: DOWN 0.5 percent 43,014.12 (close)

London - FTSE 100: UP 0.1 at 8,311.76 (close)

dan/tym

INDEX CORP.


ADVERTISEMENT





Space News from SpaceDaily.com
UK opens competitive bid for GBP 75 million orbital cleanup mission
UK invests $191 mn in European satellite firm Eutelsat
Bearings Used in Space Technologies: Engineering for the Final Frontier

24/7 Energy News Coverage
Atomic 6 receives 2M Space Force award to advance next generation solar arrays
ESA and Neuraspace develop autonomous satellite navigation technologies
Planet secures 240 million euro satellite services contract with German government

Military Space News, Nuclear Weapons, Missile Defense
France says Australia defence ties repaired after submarine row
Trump: U.S. to send Patriot missiles to Ukraine, EU to pay bill
Ukraine, Russia trade blows in escalating spy war

24/7 News Coverage
Ancient zircon data reveals tectonic origin of Earth's first continental crust
Autonomous sub explores unexplored trench depths to reveal critical mineral clues
Europe launches first geostationary atmospheric sounder to boost extreme weather forecasts



All rights reserved. Copyright Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.