Asia-Pacific Markets Decline Amid Disappointing Chinese Economic Data
- China's GDP grew by 4.7% in the second quarter, falling short of the 5.1% expected growth.
- This growth rate is also lower than the 5.3% recorded in the previous quarter.
- The news comes amidst rising political tensions including an assassination attempt on Donald Trump.
Asia-Pacific markets experienced a downturn on Monday, primarily driven by disappointing GDP figures from China and the fallout from an assassination attempt on former U.S. President Donald Trump during a weekend rally. David Roche, president of Quantum Strategy, noted that the incident could bolster Trump's chances of winning the presidency, potentially leading to a Republican sweep in both the House and Senate. China's statistics bureau reported a GDP growth of 4.7% for the second quarter, falling short of the 5.1% growth anticipated by a Reuters poll and lower than the 5.3% increase recorded in the first quarter. Additionally, retail sales for June rose by only 2% year-on-year, significantly below the expected 3.3% growth, and down from a 3.7% increase in May. This economic underperformance has raised concerns among investors regarding the sustainability of China's recovery. In the stock market, Hong Kong's Hang Seng index saw a decline of 1.73%, primarily influenced by losses in consumer stocks. Conversely, mainland China's CSI 300 index managed a slight increase of 0.11%, closing at 3,476.25, despite the disappointing economic indicators. Looking ahead, China's top leaders are set to convene for the Third Plenary Session this week, where discussions are expected to focus on pressing issues such as high local government debt and advancements in manufacturing, rather than the struggling real estate sector. Meanwhile, Japan's markets remained closed for a public holiday.