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

  • Canada open to completing NAFTA talks in short order

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • U.S. wants NAFTA talks to wrap up before year's end, but is it possible?

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • B.C. premier and jobs minister sued by fired LNG advocate claiming $5M

    Economic CTV News
    VANCOUVER -- British Columbia's fired liquefied natural gas advocate is suing Premier John Horgan, the province's jobs minister and a New Democrat MP in a lawsuit claiming $5 million in damages. Gordon Wilson alleges in a statement of claim filed in B.C. Source
  • Millennials in Atlantic Canada most optimistic about owning homes

    Economic CTV News
    Do millennials think they can afford to buy a home? If they live in Atlantic Canada, the answer is a lot more likely to be yes. That’s according to a new online survey of 1,000 Canadians aged 25 to 30, conducted by Leger Marketing from real estate firm Royal LePage. Source
  • Can millennials afford to buy a home? It depends where they live

    Economic CTV News
    Do millennials think they can afford to buy a home? If they live in Atlantic Canada, the answer is a lot more likely to be yes. That’s according to a new online survey of 1,000 Canadians aged 25 to 30, conducted by Leger Marketing from real estate firm Royal LePage. Source
  • $500K hardship fund for former Sears Canada employees approved by judge

    Economic CBC News
    A judge has approved a hardship fund for former Sears Canada employees that will come from a pool of money set aside to pay bonuses for key employees. The $500,000 fund will help former employees facing difficulty who would have otherwise been eligible for severance payments when they lost their jobs at the retailer. Source
  • Elevated testosterone linked to 'reckless' financial trading, study finds

    Economic CBC News
    It's no secret financial traders have always been predominately male. So, when a group of researchers with the Ivey Business School at Western University in London, Ont., set out to at look at the role of testosterone on the markets, it wasn't a far-flung idea. Source
  • Brazil to ask for WTO panel to settle dispute over Bombardier subsidies

    Economic CTV News
    MONTREAL -- Brazil says it will ask the World Trade Organization to establish a dispute settlement panel after consultations with Canada failed to resolve its complaint about government subsidies to aircraft manufacturer Bombardier. The South American country said it will ask the WTO to examine more than 20 subsidy programs granted to the Montreal-based company for the development of its CSeries aircraft. Source
  • Bombardier employee in Swedish unit charged with bribery

    Economic CBC News
    A Russian employee in the Swedish branch of Canadian plane and train maker Bombardier was charged Friday with aggravated bribery and faces up to six years in jail and deportation if found guilty. Swedish prosecutor Thomas Forsberg alleges Evgeny Pavlov bribed a public servant in Azerbaijan to win a $340-million contract for a new signalling system. Source
  • Bombardier says Russian worker charged with bribery doesn't reflect its values

    Economic CTV News
    MONTREAL -- Bombardier says the filing of formal criminal charges in Sweden on Friday against a railway employee doesn't reflect its values. "We take these allegations very seriously as they assert conduct that does not reflect our values or the high standards we set for ourselves, our employees and our partners," the Montreal-based company (TSX:BBD.B) said in a statement. Source