Asia report: Markets mostly lower on weaker-than-expected China data

Markets in Asia were mostly lower on Friday, as investor attention turned to China and the release of weaker-than-expected growth data from the country.

In Japan, the Nikkei 225 was ahead 0.18% at 22,492.68, as the yen weakened 0.01% against the dollar to last trade at JPY 108.67.

Of the major components on the benchmark index, automation specialist Fanuc was up 2.21%, fashion firm Fast Retailing rose 1.82%, and technology conglomerate SoftBank Group managed gains of 0.09%.

The broader Topix index went the other way in Tokyo, falling 0.13% to end its trading session at 1,621.99.

On the mainland, the Shanghai Composite tumbled 1.32% to 2,938.14, and the smaller, technology-heavy Shenzhen Composite weakened 1.17% to 1,616.72.

Beijing released its official third quarter GDP figures during the day, showing year-on-year growth of 6% for the period, which fell short of market expectations for a figure of 6.1%.

It was the latest sign that the ongoing trade war with the United States was having an effect on the People’s Republic, after economic growth dropped to its slowest rate in 27 years in the last quarter.

Chinese trade officials have repeated that Washington would need to remove punitive tariffs on Chinese goods in order for the two economic superpowers to come to a final resolution to the tit-for-tat trade dispute.

“We hope both sides can continue to work together to advance the negotiations and, as soon as possible, reach a phased agreement and make new progress on canceling tariffs,” said China’s Ministry of Commerce spokesman Gao Feng at a press conference in China on Thursday.

“China’s position, principle and goal for the China-US trade negotiations has never changed,” Gao said, according to a translation from CNBC.

South Korea’s Kospi was 0.83% lower at 2,060.69, while the Hang Seng Index in Hong Kong lost 0.48% to close at 26,719.58.

Property development companies took a breather after seeing some decent gains on Thursday, with CK Asset Holdings down 0.74%, Henderson Land falling 1.94%, and New World Development off 1.25%.

The gains in the previous session were on the back of an address from the city’s leader Carrie Lam, who promised land and housing reform in a bid to bring some sort of stability to the special administrative region, which has been rocked by months of pro-democracy demonstrations.

Both of the blue-chip technology stocks were in the red in Seoul, with Samsung Electronics down 1.19% and chipmaker SK Hynix plunging 4.44%.

Oil prices were higher as the region entered the weekend, with Brent crude last up 0.43% at $60.17 per barrel, and West Texas Intermediate adding 0.96% to $54.45.

In Australia, the S&P/ASX 200 fell 0.52% to settle its trading day at 6,649.70, with the big four banks remaining in the red and dragging the hefty financials subindex down.

Australia and New Zealand Banking Group was off 0.68%, Commonwealth Bank of Australia lost 0.59%, National Australia Bank fell 0.35%, and Westpac Banking Corporation slipped 0.83%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.7% to 11,067.12, led lower by the country’s largest listed company, energy generator and retailer Meridian, which was off 2.2%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.22% at AUD 1.4622, and the Kiwi advancing 0.3% to NZD 1.5706.