Asia Markets: Asian markets mixed after decades-worst GDP growth by China

Asian markets were mixed in early trading Friday, despite new data that showed slowing economic growth in China. Read More...

Asian markets were mixed in early trading Friday, as new data showed worse-than-expected economic growth in China.

China’s economy expanded at a 6% rate year-over-year, official data showed, less than the median 6.1% forecast by economists polled by the Wall Street Journal, and the worst pace of growth since the first quarter of 1992. It was the second straight month of weaker year-on-year data. China expects annual GDP growth of 6% to 6.5% this year, down from last year’s 6.6% growth.

Still, investors appeared relieved the numbers weren’t worse, considering the ongoing tariff war with the U.S. and signs of a global slowdown.

“While the GDP is testing the lower bound of the official annual 6-6.5% target, today’s data suggests there is a very limited risk of breaching the lower bounds of that target this year,” Stephen Innes, Asia-Pacific market strategist for AxiTrader, wrote in a note. “While risk asset is not flashing all green, markets can breathe a sigh of relief.”

Japan’s Nikkei NIK, +0.56% rose 0.6% as a core inflation reading fell to 0.3% in September, the lowest level since April 2017, but in line with analysts’ expectations. Hong Kong’s Hang Seng Index HSI, -0.15% fell 0.1% giving up early gains, while the Shanghai Composite SHCOMP, -0.56% fell 0.2% and the smaller-cap Shenzhen Composite 399106, -0.48% was last about flat. South Korea’s Kospi 180721, +0.08% was flat as well, while benchmark indexes in Taiwan Y9999, -0.20% , Singapore STI, -0.38% , Indonesia JAKIDX, +0.17% and Malaysia FBMKLCI, -0.22% were little changed. Australia’s S&P/ASX 200 XJO, -0.66% slipped 0.6%.

Among individual stocks, robotics maker Fanuc 6954, +2.96% gained in Tokyo trading, along with Rakuten 4755, +2.23% and Fast Retailing 9983, +2.09% . In Hong Kong, Sunny Optical 2382, +1.28% and AIA 1299, +0.26% gained, while property developers such as Wharf Real Estate 1997, -1.11% retreated after big gains Thursday. Kia Motors 000270, +0.62% gained in South Korea, while Westpac WBC, -1.22% and Commonwealth Bank CBA, -1.05% slipped in Australia.