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Asia Markets Fall; China’s Economy Grew 6.3%, Missing Expectations

Asia-Pacific markets fell on Monday as investors digested key economic data from China.

Most notably, the world’s number two economy reported that GDP for the second quarter grew 6.3%, lower than economists expected.

Hong Kong markets will likely be closed all Monday due to a warning issued for Typhoon Talim. The Hong Kong Observatory expects storm signal No. 8 to remain in force until at least 4pm.

The Hong Kong Exchange usually cancels the morning trading sessions if the typhoon signal is No. 8 or above, and all trading sessions for the day will be cancelled if signal No. 8 or above remains in force by noon.

In mainland China, the Shanghai Composite fell 0.87%, leading losses in the region and closing at 3,209.62. The Shenzhen Component was down 0.63% to end at 11,010.36.

In Australia, the S&P/ASX 200 closed marginally lower at 7,298.50, snapping a four day winning streak. The country will release unemployment figures later this week, which will give clues to the Reserve Bank of Australia’s rate decisions.

South Korea’s Kospi dipped 0.35% to end at 2,619, also ending a four-day winning streak. The Kosdaq bucked the regional trend and was up 0.22% to close at 898.29.

Elsewhere Japan’s markets are closed for Marine Day.

In Southeast Asia, Singapore’s non-oil domestic exports dropped 15.5% in June compared to a year earlier, while Indonesia saw its trade balance for June surge more than expected.

.N225Nikkei 225 Index*NIKKEI32493.89102.630.32
.HSIHang Seng Index*HSI19015.72-398.06-2.05
.AXJOS&P/ASX 200*ASX 2007283.8-14.7-0.2
.KS11KOSPI Index*KOSPI2607.62-11.38-0.43
.FTFCNBCACNBC 100 ASIA IDX*CNBC 1008664.97-53.02-0.61

U.S. markets were mixed on Friday, with the Dow Jones Industrial Average reaching its highest level since March as strong earnings results from some of the biggest banks and companies kicked off earnings season.

However, the S&P 500 dropped 0.10%, and the Nasdaq Composite declined 0.18%, but both indexes touched their highest intraday levels since April 2022.

Indonesia trade falls more than expected in June, trade surplus rises

Indonesia’s trade surplus for June surged to $3.46 billion, sharply higher than the $1.35 billion forecast by economists polled by Reuters.

However, total trade fell overall, with the country’s exports in June down $20.61 billion, falling by 21.18% year-on-year.

Imports for June came in at $17.15 billion, 18.35% lower compared to June last year.

Investments in Asia-Pacific hotels plunged in first half of 2023, JLL says

Investments in hotels in Asia-Pacific saw a significant drop in the first half of the year due to instability in the U.S. and Europe debt markets, JLL said.

Compared to the previous year, investments plummeted by 52% and reached $3.1 billion, data from the real estate firm showed.

“A lot of buyers now are facing rate cycles, inflation uncertainty, macroeconomic challenges,” Calvin Li, head of transaction advisory services at JLL, told CNBC’s “Squawk Box Asia” on Monday.

As a result, want to “keep their capital on the sidelines,” he added, till it is the right time to invest again.

However, Li does expect investments in the region to pick in the second half of the year as the debt market stabilizes and forecasts $8.7 billion worth of hotel investments in 2023.

“With the rate cycles close to stabilizing … and inflation abating in most developed markets, we think investors will be a little bit more risk on [and] willing to take the plunge,” Li said.

Source : CNBC