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Asian shares slide amid China growth concerns

Asian equities were mostly lower on Tuesday after weaker-than-expected Chinese retail sales highlighted the country’s patchy economic recovery and reinforced expectations that Beijing will need to provide further support. Oil prices and US Treasury yields moved higher, adding to investor caution ahead of Wednesday’s Federal Reserve decision. US equities closed in the red on Monday as AI-related concerns hit chip stocks.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

China Shanghai
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China’s retail sales increased 0.4% year-on-year in August, slowing from 0.6% in July and undershooting the market’s expectations, data released on Tuesday showed. Industrial production rose 5.2%, accelerating from 4.5% in July and exceeding expectations, while urban fixed-asset investment fell 7.2% in the first eight months, following a 6.7% decline from January through July. The urban unemployment rate edged up to 5.3% from 5.2% in July, partly reflecting the graduation season. The statistics bureau cited an acute imbalance between strong industrial production and weak domestic consumer demand, adding pressure on Beijing to strengthen policy support as second-quarter economic growth slowed to 4.3%. Mainland China’s CSI 300 fell 0.2% on Tuesday, while Hong Kong’s Hang Seng Index declined 0.6%.

Asian shares mostly lower

Asian equities were mostly in the red on Tuesday due to pressure from oil prices (with Brent crude oil futures up 1.8% at USD 107.54 per barrel and West Texas Intermediate futures gaining 1.9% to USD 103.36 per barrel), rising US Treasury yields (2-year: 4.7%; 10-year: 5.0%) and expectations of a Federal Reserve rate increase on Wednesday. Japan’s Nikkei 225 rose 0.1%, while Korea’s Kospi fell 0.8%. Australia’s S&P/ASX 200 declined 1.1% and India’s Nifty 50 slipped 0.2%. Gold and bitcoin were trading slightly lower, with the yellow metal down 0.1% to around USD 4290 per ounce, while the largest digital asset declined 0.3% to around USD 77,400.

US stocks fall amid slowdown AI concerns

US equities declined on Monday as concerns over artificial intelligence safety weighed on semiconductor stocks, although briefly easing oil prices limited losses. The Nasdaq 100 fell 0.8% to 29,127.16 points, while the S&P 500 declined 0.5% to 7619.98 points and the Dow Jones Industrial Average lost 0.3% to 52,421.20 points. Chipmakers including Arm, Marvell and Applied Materials dropped between 7.1% and 9.7%, while Nvidia fell 3.4%, whereas cybersecurity companies CrowdStrike, Palo Alto Networks and Okta rose between 12% and 14%. The concerns followed warnings from AI industry leaders, including Anthropic Chief Executive Dario Amodei, that increasingly capable systems could pose serious security risks, prompting calls to slow development and establish safeguards.

Swiss producer and import prices rise

Switzerland’s producer and import price index rose 0.7% month-on-month to 100.4 points in August, the Federal Statistical Office reported on Monday, while remaining 0.7% below its level a year earlier. The increase was driven principally by a 27.3% rise in domestic petroleum-product prices and a 27.7% jump for imported petroleum products. Import prices climbed 1.9% from July and were 0.8% higher year-on-year, whereas producer prices increased 0.2% on the month but fell 1.3% from August last year. On Monday, the Swiss Market Index rose 0.8% to 13,878.54 points, while the Euro Stoxx 50 fell 0.8% to 6275.25 points.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: UK unemployment rate (08:00), French Consumer Price Index (08:45), Italian trade balance (10:00), German ZEW Indicator of Economic Sentiment (11:00), euro-area trade balance (11:00), Bundesbank monthly report (12:00) and Empire State Manufacturing Index (14:30).

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Editor: Alessandro Fezzi
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