World News | Stock Market Today: Asian Markets Edge Lower as China Reports Slower Growth in the Last Quarter

Bangkok, Oct 18 (AP) Shares have fallen in Asia after China reported that its economy grew at a 4.9 per cent annual pace in July-September, down from 6.3 per cent in the previous quarter.

US futures also fell, while oil prices jumped USD 2.

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China's National Bureau of Statistics said the world's second-largest economy slowed in the summer as global demand for exports faltered and the ailing property sector sank deeper into crisis.

The Chinese government has acted to help the economy with various policies, raising spending on building ports and other infrastructure, cutting interest rates and easing curbs on home-buying.

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But economists say wider reforms are needed to address longer-term problems, such as a fast-aging population and falling productivity, that are hindering growth.

The weak global demand and the property industry remain the biggest shadows overhanging the economy in the near term, economists said.

“The wider data on the property sector remained weak, although green shoots are appearing,” Capital Economics said in a report. “New housing starts continued to drop and are now at their lowest levels since 2005,” it said.

Hong Kong's Hang Seng shed 0.1per cent to 17,755.25 and the Shanghai Composite index dropped 0.6 per cent to 3,064.76.

The Nikkei 225 in Tokyo also was down 0.1 per cent at 32,003.18. South Korea's Kospi added less than 0.1 per cent, to 2,461.78 and Australia's S and P/ASX 200 was up less than 3 points, at 7,060.50.

Bangkok's SET rose 0.5 per cent and India's Sensex was down less than 0.1 per cent.

On Tuesday, the S and P 500 edged down less than 1 point to 4,373.20. The Dow Jones Industrial Average added less than 0.1 per cent, to 33,997.65, and the Nasdaq composite fell 0.3 per cent, to 13,533.75.

A report on Tuesday showed shoppers spent more at US retailers last month than economists expected. But a too-hot economy could also give inflation more fuel and push the Fed to keep interest rates high to suffocate it. Such a move would hurt prices for stocks and other investments.

Treasury yields in the bond market rose. The yield on the 10-year Treasury climbed to 4.83 per cent from 4.69 per cent late Monday.

A sharp jump since the summer in the 10-year yield has weighed on the stock market, as traders increasingly accept the Fed's forecasts that it will likely keep rates high for a long time. The central bank has already pulled its main interest rate to the highest level since 2001 and is debating whether to increase it one more time.

Nvidia and other chipmakers were under extra pressure after the US government broadened restrictions to stop China from acquiring advanced computer chips and the equipment to manufacture them. Nvidia fell 4.7 per cent.

Several big US companies, meanwhile, gained following their latest earnings reports.

Bank of America was helping to lead the market with a 2.3 per cent gain after it beat Wall Street's profit forecasts for the third quarter.

Bank of New York Mellon rose 3.8 per cent after it also reported stronger profit than expected for the latest quarter.

The broad expectation for companies across the S and P 500 index is that profits returned to growth during the summer for the first time in a year.

Wyndham Hotels and Resorts rose 9 per cent after rival Choice Hotels International said it wants to buy the company for USD 90 per share in cash and stock, valuing it at USD 7.8 billion.

Wyndham said it rejected the offer as “underwhelming”. Choice shares fell 6.8 per cent.

Crude oil prices advanced on Wednesday as worries flared that war in the Middle East could lead to disruptions in supplies if it drew in Iran or other major oil-producing countries.

A barrel of US crude for delivery in November jumped USD 2.15 to USD 88.81 per barrel in electronic trading on the New York Mercantile Exchange. It was unchanged on Tuesday after bouncing between gains and losses through the day. Brent crude, the international standard, gained USD 1.98 to USD 91.88 per barrel.

In currency trading, the dollar slipped to 149.67 Japanese yen from 149.82 yen. The euro rose to USD 1.0579 from USD 1.0576. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)