MSCI Asia Ex Japan today fell 1.4 per cent after rallying 3.2 per cent on Wednesday.
China’s banks and oil explorers contribute the most to declines.
China’s consumer inflation in August edged up more than expected, but producer prices fell for the 42nd straight month in the latest sign that deflation remains a significant risk for the world’s second-largest economy.
ICBC plunged 2 per cent, Bank of China fell 1.9 per cent, China Construction Bank shed 2.2 per cent, and BOC Hong Kong slumped 4.3 per cent.
China’s economic slowdown is raising worries over bad debts which are already eating into lenders’ profitability.
China’s big four banks reported little or no growth in pre-tax profit in the first half.
Oil explorers fell tracking lower oil prices as Asia’s leading economies slow further.
CNOOC plunged 5.3 per cent, Petrochina shed 5 per cent, Sinopec Corp fell 1.9 per cent, while Reliance was down 1.4 per cent.
Taiwan Semiconductor was also down 1.6 per cent after its August sales fell 3.2 per cent year-on-year.
Asian companies with exposure to Brazil and Apple suppliers also slide.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.