Risk assets from commodities to Asian shares slid on Monday as weaker-than-expected U.S. and Chinese data raised concerns about the global economic outlook, prompting investors to book some gains from recent market rallies.
Global equities and commodities slumped late last week on a negative reading of U.S. consumer sentiment and soft retail sales, as well as on rekindled worries in the euro zone. This raised investor sensitivity to data due this session from China, the world’s second-largest economy.
China said on Monday its economic recovery unexpectedly stumbled in the first three months of 2013, with the annual rate of growth easing to 7.7 percent from 7.9 percent in the final quarter of last year. Economists had forecast 8 percent growth. Another data showed industrial output in March grew 8.9 percent from a year earlier, undershooting expectations for a 10 percent rise.
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