China and Japan Data Hits Asian Stock Markets

Asian shares fell on Monday after both China and Japan released disappointing economic data, worrying investors about a slowdown in the region.

Both Hong Kong’s Hang Seng index and the Shanghai Composite fell by 2%, while Japan’s benchmark Nikkei 225 closed down 1%.

On Monday, Japan revised down its 2013 growth estimates and reported a record deficit.

Over the weekend, China said exports plunged 18.1%, surprising analysts.

That data led to a broad Asian sell-off, with China’s CSI 300 Index falling to its lowest since 2009.

Australian shares shed 1% of their value following the data release, dragged down by losses in mining and other resource stocks, which are heavily dependent on China’s commodities demand.

BHP Billiton fell 3.2%, Rio Tinto dropped 4.6% and Fortescue Metals tumbled 10% in Sydney trading.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza