The news about the state of China’s economy affected stock markets across the Asia Pacific region. Last week, data showed that the largest economy in Asia and the second-largest in the World is facing problems.
China’s economy increased by 6% in the third quarter. For example, in the second quarter of 2019, the economy grew by 6.2. This shows that the growth rate continues to fall, and this a serious challenge for the local as well as the global economy.
It is worth mentioning that the current growth rate is at the lowest level in more than 27 years. China’s economy is still growing, but the growth rate is falling which shows that the local economy is slowing down. It is crucial for the Chinese government to tackle these problems. Otherwise, economic issues may undermine the party’s authority in the long run.
The trade war between the U.S. and China worsened the situation. It affected stock markets all over the world.
Hopefully, on Friday, U.S. and Chinese representatives reached an agreement. Even though trade war is not over yet, this agreement is already a step forward, and improved relations will benefit the stocks.
Stock markets on Friday
As mentioned above, stocks in the Asia Pacific reacted to the news that China’s economy slowed down in the third quarter.
This news had a negative impact on mainland Chinese on Friday. The Shanghai Composite fell by 1.32% and was close to 2,932.14. The Shenzhen Composite decreased by 1.17 % and was close to 1,616.72. 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 strengthened its position by 0.18% to 22,492.68.
South Korea’s Kospi fell by 0.83% and was close to 2,060.69.
The resolution of the trade war will boost the stocks in China as well as abroad.