ALBAWABA – Markets slipped Monday on China’s pause on further economic and financial policy adjustments, as concerns build over an impending economic slowdown in the world’s second-largest economy.
Stocks and equities rallied last week, partly driven by Beijing’s latest interest rate cuts and hopes for more economic stimulus to go with them.
Sources had reported to news agencies last week, including both Reuters and Bloomberg, that the Chinese government met with experts on stimulating consumer activity and the struggling property sector.
State media said a State Council meeting last Friday, reportedly on economic policy, at least in part, but no details were disclosed.
"Government policy expectations were overdone," Steven Leung, at UOB Kay Hian told Agence France-Presse (AFP).
Still, with China’s economy struggling and key industries in trouble, leaders have plenty of work to do, analysts said.
"China needs to drive growth in sectors like technology, education, finance and entertainment. All of which have suffered under the security-focused leadership of Xi Jinping," said Stephen Innes at SPI Asset Management.
After Wall Street closed Friday in the red, Asian traders struggled.
Tokyo, Hong Kong, Shanghai, Seoul, Mumbai, Singapore, Taipei, Manila, Jakarta, Bangkok and Wellington were all down, though Sydney rose, AFP reported.
Oil prices fell on the lack of policy direction from China.
London and Paris fell, while Frankfurt also drew back after striking a record high on Friday.
Early market figures as reported by AFP:
Tokyo - Nikkei 225: DOWN 1.0 percent at 33,370.42 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 19,912.89 (close)
Shanghai - Composite: DOWN 0.5 percent at 3,255.81 (close)
London - FTSE 100: DOWN 0.4 percent at 7,614.24
Euro/dollar: DOWN at $1.0932 from $1.0941 on Friday
Pound/dollar: DOWN at $1.2816 from $1.2823
Dollar/yen: DOWN at 141.80 yen from 141.84 yen
Euro/pound: UP at 85.33 pence from 85.30 pence
West Texas Intermediate: DOWN 0.6 percent at $71.48 per barrel
Brent North Sea crude: DOWN 0.6 percent at $76.12 per barrel
New York - Dow: DOWN 0.3 percent at 34,299.12 (close)
