The Asian markets ended the first trading session of the week with strong decreases after the publication for the disappointing economic data from China. The investor’s pessimism was further supported by the downward revision of the Japanese economic growth in Q4 2013.
The Chinese benchmark Shanghai Composite dipped with 2.86% to a level of 1,999.06 points amid the fears about the rise of the second most powerful economy in the world. The government data showed that the consumer prices rose with smaller pace in February, while the growth in the producer prices stepped back stronger than expected. The Chinese consumer price index has increased with 2.0% in February compared to the same month an year earlier. The level was lower than the published in January growth rate of 2.5%. Of course important role in the trading and investors’ confidence paid the report about the Chinese export, which collapsed with 18.1% in February yoy.
Among the major losers were the companies from the financial sector, as the market capitalization of Minsheng Bank and Hua Xia Bank tumbled by over 3.5%, while Merchants Bank lost 2.0%.
The Japanese Nikkei 225 terminated its three consecutive sessions of growth, losing 1.01% to a level of 15,120.14 points. The investors reacted to the recent economic data showing that the Japanese economy grew with 0.7% yoy in Q4 2013, as the previous government assessment was for a rise of 1.0%. The correction was made due to the slowdown in capital spending and the private consumption.
Among the major losers of the markets were Softbank, which price dropped with 0.8% and Fast Retailing, which decrease reached almost 2.0%.
The strengthening of the JPY against the USD weighed on the expected performance of export-oriented companies. The shares of Toyota Motor fell with 1.2%, while Honda Motor wiped with 2%.
Meanwhile, the Bank of Japan began its traditional monthly meeting, the result of which will be clear on Tuesday.
In Australia, the S&P ASX 200 stepped back from its 5.5-year high, decreasing with 0.93% to 5,411.52 points. The drop also was reflected by the data from China, which is the largest trading partner of the island country.
Affected by the decrease were the mining companies. Atlas Iron market capitalization dropped by over 10%, while Fortescue Metals lost 9.4%. The giants Rio Tinto and Whitehaven Coal decreased with about 5.0%
The South Korean shares fell to one-week bottom on Monday, as the investors choose risk-free heavens amid the weak economic data from the region. The benchmark KOSPI fell with 1.03% to 1,954.42 points.
The strongest decline recorded the shares of Lotte Chemical, which fell with 5.7% after the unofficial information that the company will report smaller profit in the first quarter of the current year.