Stock markets in China and across the Asia-Pacific region declined on Friday. The major reason which affected the stocks is the news about China’s economy. The largest economy in Asia and the second-largest in the World released information about its economy.
On Friday, China published the report, which highlighted that the economy which is famous for its record-breaking growth is facing problems. The economy grew by 6% in the third quarter. It means that in comparison with the second quarter of 2019 this number fell by 0.2%.
It is important to mention that it is the lowest growth rate in more than 27 years. This trend is alarming for the country, which experienced rapid economic growth for decades. In the first quarter of 2018, the economy increased by 6.8%. It means that the economy started to slow down more than a year ago.
This problem once more underlines that China’s economy is experiencing problems due to the trade war with China. This trade dispute started over a year ago. Last week U.S. and Chinese authorities met in Washington D.C. Hopefully, they came to an agreement. Both sides are ready to sign the phase one deal. However, before signing this document, there is a risk of escalations due to the protests in Hong Kong.
Stock markets on October 18
Stocks across Asia reacted to the news that China’s economy slowed down in the third quarter.
The mainland Chinese markets fell on Friday. The Shanghai Composite decreased by 1.32% and is close to 2,932.14. The Shenzhen Composite fell by 1.17 % and is close to 1,616.72. Another Chinese index, which is the Shenzhen component, dropped 1.16% to 9,533.50.
In Hong Kong, the Hang Seng Index decreased by 0.72%.
Major stock index in Japan was an exception as Nikkei 225 it grew by 0.18% to 22,492.68.
South Korea’s Kospi fell by 0.83% and is close to 2,060.69.