Asia: Stocks down following China's GDP data

Asian markets saw broadly bearish sentiments on Wednesday, as China posted the slowest pace of growth since 2009.

The Shanghai composite index fell 1.24% as the Chinese gross domestic product (GDP) fell to its slowest pace of growth in six years during the first quarter of the year, fuelling hopes in the market that policymakers will expand stimulus policies to accelerate growth.

China's GDP came in at 7% year-on-year, compared to the previous figure of 7.3%. “With the government's growth target already challenged, the implications are that there will be more monetary easing and probably also some additional fiscal easing,” Danske Bank Markets said.

Also on Wednesday, Chinese industrial production was up 6.4% in March, against expectations of 6.9% gain. Retail sales grew 10.2% in March, while forecasts expected a 10.9% increase.

Hong Kong's Hang Seng recovered from the previous day's loss, closing higher at 0.21%. The stock was helped by hopes that the Chinese data will drive further economic stimulus measures to battle the slowdown.

Michael Hewson, chief market analyst at CMC Markets UK, said the poor data is “likely to result in further easing measures from Chinese authorities in the coming weeks and months, and it is this prospect which has, in the old bad news is good news kind of way that we’ve become used to, driven Hong Kong and Shanghai markets to multi year highs, over the past few days and weeks”.

Tokyo's Nikkei 225 also fell 0.2% as the yen posted solid gains trading at ¥119.53 against the dollar.

Australia's ASX was down 0.64% after Westpac consumer confidence fell to -3.2% in April from -1.2% the month before.

The Aussie stocks were also hurt by data coming from Shanghai given that China is the biggest buyer of Australia's exports.

In corporate news, Australian miners gained as oil benchmarks continued to trade steadily in the green for the fourth successive session.

Brent crude was trading up 0.92% or 54 cents at $58.97 per barrel in Asian markets, while the WTI was up 0.64% or 34 cents at $53.63.

Mining stocks continued their recovery with BHP Billiton and Rio Tinto up 1.34% and 1.58% respectively.

Elsewhere, selected Japanese stocks were hurt by China's GDP data. Fast Retailing lost 1.64% and construction group Komatsu fell 1.85%.

However, Japan Airlines jumped 5.08% and oil company Inpex gained 1.51%.