Chinese economic woes dragged down Asian markets while interest rate woes caused a bearish tumble in Europe.
Asian and European stock markets faced sharp declines on Friday, with China spearheading the downturn as its September consumer price index showed no growth. Markets pundits say weak economic indicators from China could become a cause of concern for the global economy.
European stocks also traded lower on Friday due to concerns stemming from U.S. inflation data suggesting potential higher interest rates. The elevated inflation figures may prompt the Federal Reserve to maintain its primary interest rate at a higher level for an extended period to curb inflation, a move that unsettled investors, as evidenced by today’s stock market performance.
China drags down Asian stock market amid declining economy
Asian stocks broke past their bullish run on the last day of the week as stocks across China, Japan and Hong Kong tumbled after China released its consumer price index which came in lower than expected indicating a slowing economic outlook for the world second second-largest economy. China also reported a 2.5% decline in its producer price index. China’s benchmark CSI 300 index fell 1.05%, closing at 3,663.41.
Hong Kong’s benchmark stock index Hang Seng Index fell 2.3% on Friday, ending a six-day bullish run.
Japan’s benchmark index Nikkei 225 fell by 0.6% to close at 32,315.99 while South Korea’s Kospi fell 0.95% to end at 2,456.15.
European stocks tumble amid US interest hike woes
European markets finished the week on a low amid growing concerns around interest rate hikes from the Fed as well as concerns about economic growth.
The London benchmark stock index FTSE 100 fell by 0.3% despite a boost in oil prices given the weighting of energy corporations, such as BP and Shell, in London’s benchmark index is significant.
The pan-European Stoxx 600 index fell by 0.6% as well, ending the week on a low after three consecutive days of bullish gains.
