China Stocks Bounce Back From Softer Data Release

Shares in China recovered earlier lost ground on Wednesday to close with a small gain.

A raft of weaker-than-expected data about the state of the mainland’s economy hit values but the Shanghai Composite finished up 0.2% at 3,290.90.

The latest China data showed factory output rising 6.8% year-on-year in January and February, below some expectations for a rise of nearly 8%.

Hong Kong’s Hang Seng index closed down 0.8% at 23,717.97.

Together with weaker-than-expected retail sales and fixed-asset-investment (FIA) numbers for the beginning of the year, analysts said the figures supported forecasts that China’s economy will see its slowest growth rate in 25 years.

The world’s second-largest economy has set its growth target at about 7% for this year.
The mainland combines its January and February numbers for some industries in order to smooth out the effects of the Chinese New Year holiday period.

Other data showed retail sales rose 10.7% for the period, missing expectations for a rise of close to 12%, while FIA, which is an important driver of the economy, rose 13.9% against expectations for a rise of 15%.

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