Asia report: Stocks mixed after avalanche of data from China

Stocks were mixed in Asia on Tuesday, with Hong Kong’s bourse leading the losers after a raft of economic data was released in China.

In Japan, the Nikkei 225 was up 0.69% at 26,985.09, as the yen weakened 1.06% against the dollar to last trade at JPY 128.34.

Robotics specialist Fanuc was up 1.63%, while among the benchmark’s other major components, Uniqlo owner Fast Retailing was down 1.72% and tech investing giant SoftBank Group lost 1.88%.

The broader Topix index was 0.83% firmer by the end of trading in Tokyo, closing at 1,895.70.

On the mainland, the Shanghai Composite slipped 0.05% to 3,194.03, and the smaller, technology-heavy Shenzhen Composite was 0.11% lower at 2,020.28.

The moves came after some mixed economic data out of China, with first-quarter GDP above expectations, while retail sales in March were weaker than anticipated.

Beijing said GDP was up 4.8% year-on-year in the People’s Republic in the first quarter- up from 4.0% in the fourth quarter of 2021, and above expectations for 4.2%.

Nominal GDP was 8.4% firmer year-on-year, meanwhile, down from 9% in the fourth quarter.

“China’s growth target for the year already looks elusive,” said Craig Botham at Pantheon Macroeconomics.

“Real growth of ‘around 5.5%’ will rest heavily on more aggressive stimulus coming through by the second half, and a more generous interpretation of ‘around’.

“China’s economy actually lost momentum in Q1 - as demonstrated by the quarter-on-quarter number - despite a front loading of infrastructure stimulus, thanks to the hit from zero-Covid policies.”

Elsewhere in data from China, industrial production growth fell to 5.0% in March, from 7.5% in the January-February, although that was still above forecasts for 4.0%.

Fixed asset investment slowed to 9.3% year-on-year for the year-to-date, from 12.2% in January-February, although that was also above consensus expectations for 8.4%.

Finally, retail sales shrank 3.5% year-on-year in March, after growing 6.7% in January-February.

Market consensus was for a shrinking of 3.0% for retail sales.

On Monday, the People’s Bank of China attempted to underpin sentiment by announcing fresh financial support for businesses and industries affected by the current Covid-19 outbreak, which has been centred in Shanghai.

South Korea’s Kospi was ahead 0.95% at 2,718.89, while the Hang Seng Index in Hong Kong tumbled 2.28% to 21,027.16.

Gaming-related technology plays were weaker in the special administrative region, after Beijing announced a ban on the live streaming of unapproved games.

Alibaba Group was down 4.19%, Bilibili plunged 10.92%, NetEase slipped 2.99%, and Tencent Holdings was 2.78% weaker.

The blue-chip technology stocks were on the front foot in Seoul, with Samsung Electronics up 0.9% and SK Hynix jumping 3.21%.

Oil prices were lower as the region went to bed, with Brent crude futures last down 1.47% on ICE at $111.50, while West Texas Intermediate was 1.57% weaker on NYMEX at $106.51 per barrel.

In Australia, the S&P/ASX 200 managed gains of 0.56% at 7,565.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.47% to 11,835.88.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.46% at AUD 1.3543, and the Kiwi advancing 0.36% to NZD 1.4804.