Asian shares fall on worries over China

TOKYO - Asian shares sagged Tuesday as oil prices gave up overnight gains. A weaker dollar weighed on Japanese stocks following the release of revised data showing Japan's economy contracted in October-December.

See Full Article

KEEPING SCORE: Japan's benchmark Nikkei 225 dropped 1.7 per cent to 16,632.06 and South Korea's Kospi lost 1.1 per cent to 1,936.07. Hong Kong's Hang Seng index shed 1.0 per cent to 19,949.84, while the Shanghai Composite slipped 2.4 per cent to 2,828.53. Australia's S&P/ASX 200 fell 0.7 per cent to 5,171.40 and other regional stocks also declined.

WALL STREET: Wall Street managed to eke out only modest gains after wavering through the day. The Dow Jones industrial average rose 67.18 points, or 0.4 per cent, to 17,073.95. The S&P 500 edged up 1.77 points to 2,001.76. The Nasdaq composite, which is heavily weighted with technology stocks, gave up 8.77 points, or 0.2 per cent, to 4,708.25.

JAPAN DATA: Revised data showed Japan's GDP contracted at a 1.1 per cent annualized pace in the last quarter, compared to a 1.4 per cent expansion in the July-September quarter. It was a modest improvement over the previous estimate of a 1.4 per cent contraction in October-December.

THE QUOTE: "To be sure, Japan's economy fared better in Q4 than preliminary data suggested," said Vishnu Varathan, Singapore Treasury Division at Mizuho Bank. "All said, reviving growth is still the main policy challenge for the Abe administration and the BOJ," he said, referring to Prime Minister Shinzo Abe and the Bank of Japan, which has implemented negative interest rates to encourage growth.

COMMODITIES: Investors appeared skeptical over Monday's rally in oil, iron ore and other commodities, analysts said. The surge was underscored by a short-lived 5.5 per cent jump in U.S. crude prices Monday.

CHINA WORRIES: Also rattling markets lately are the worries about the Chinese economy, which has been a key driver of growth. China also lowered its official growth target this year to 6.5 to 7 per cent.

ENERGY: Benchmark U.S. crude fell 44 cents to $37.46 a barrel on the New York Mercantile Exchange. It jumped $1.98 on Monday to $37.90 a barrel. Brent crude, which is used to price international oils, fell 58 cents to $40.26 a barrel.

CURRENCIES: The euro was little changed at $1.1026, up from $1.1013. The dollar edged down to 112.92 yen from 113.27 yen.



Advertisements

Latest Economic News

  • Asian stocks tumble after Italy rejects constitutional changes

    Economic CTV News
    BEIJING - Asian shares tumbled Monday after Italian voters' rejected constitutional changes, raising questions over whether Italy will stay in the European Union and keep using the euro. KEEPING SCORE: Sydney's S&P-ASX 200 index dropped 1 per cent to 5,391.40 points and the Shanghai Composite Index lost 0.9 per cent to 3,215.30. Source
  • Euro tumbles after Italy's PM resigns, loses referendum

    Economic CBC News
    The euro tumbled in early Asian trade on Monday after Italian Prime Minister Matteo Renzi said he would resign after conceding defeat in a referendum over his plan to reform the constitution. The euro dropped 1.3 per cent to $1.0505 US, falling below its 1 1/2-year low of $1.0518 touched late last month, and testing its key support levels where the currency has managed to rebound in the past couple of years. Source
  • Company sold turf product after learning of defects: report

    Economic CTV News
    WOODBRIDGE, N.J. -- The country's leading maker of artificial sports turf sold more than 1,000 fields to towns, schools and teams nationwide after its executives knew they were falling apart faster than expected and might not live up to lofty marketing claims, according to an investigation by a news organization. Source
  • Montreal-based company sold turf product after learning of defects: report

    Economic CTV News
    WOODBRIDGE, N.J. -- The country's leading maker of artificial sports turf sold more than 1,000 fields to towns, schools and teams nationwide after its executives knew they were falling apart faster than expected and might not live up to lofty marketing claims, according to an investigation by a news organization. Source
  • U.S., China, EU, others fail to reach environmental goods deal

    Economic CTV News
    GENEVA -- Forty-six countries including the U.S., China and European Union nations failed Sunday to agree on a list of "environmental goods" like solar-powered air conditioners or LED light bulbs that could be targeted for lower tariffs. Source
  • Venezuela to issue new bills with current ones worth no more than 2 U.S. cents

    Economic CTV News
    BOGOTA -- Venezuela said it will issue higher-denominated bills as triple-digit inflation and a currency meltdown leave the country's largest note worth just around 2 U.S. cents on the black market. The central bank said in a statement Saturday that six new bills ranging from 500 to 20,000 Bolivars will begin circulating on Dec. Source
  • Six things to know about the bovine TB outbreak: CFIA's chief veterinary officer

    Economic CTV News
    OTTAWA -- More than 22,000 cattle at farms in Alberta and Saskatchewan are quarantined due to bovine tuberculosis, causing hardship for ranchers and millions in compensation payments and other costs. The Canadian Food Inspection Agency is testing cattle to determine the extent of the outbreak and the source of the contagious bacterial infection. Source
  • U.K.'s Boris Johnson downplays EU payment suggestions

    Economic CTV News
    LONDON -- Britain's foreign secretary has dismissed suggestions that London would be willing to pay into European Union coffers following an exit from the bloc, describing the idea as speculation. Boris Johnson's comments to the BBC on Sunday came after Britain's minister for leaving the European Union, David Davis, said that the country might be willing to pay in return for access to the single market. Source
  • Beyond the hippie stereotype: A closer look at the opposition to Trans Mountain

    Economic CBC News
    A conversation about tripling your money on a tech start up might seem out of place at an anti-pipeline march, but not so in Vancouver. When thousands of protestors made their way from City Hall to downtown a few weeks ago, chatter about stock options and where to go for ramen after the rally could be heard alongside the traditional indigenous drumming and chants of "Hey, hey, Trudeau, Kinder Morgan's got to go". Source
  • Using Air Miles for overseas flights? It may not be a great deal

    Economic CBC News
    You've saved your Air Miles for a well-deserved overseas adventure — but don't pack your bags just yet, as you may be in for a surprise. Seventeen million Canadians collect Air Miles reward points on everything from groceries to gas. Source