Asian stocks skidded to five-week lows on Monday, giving European markets a negative lead after a batch of weak data out of China raised the spectre of a sharp slowdown in the world’s second-biggest economy.
Financial spreadbetters are expecting falls of 0.3 percent to 0.7 percent at the open for major European bourses. “As if traders didn’t have enough to contend with this week what with the Scottish referendum and the FOMC meeting, China has flapped their hands in the air to remind everyone that they are facing an abrupt slowdown,” Capital Spreads trader Jonathan Sudaria wrote in a note.
Data out on Saturday showed China’s factory output grew at the weakest pace in nearly six years in August, while growth in other key sectors also cooled. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slid 0.9 percent to levels last seen on Aug. 8. The index has fallen 4 percent in a little over a week, from a near seven-year peak.