Newscasts - Asia Markets Briefing: China's fragile economic recovery continues to falter

Hyundai Holdings Co

15/07/2024 10:02

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Source: 'Reuters - Business videos'

Description: The world's second largest economy grew at its worst pace in five
quarters, reviving expectations for fresh stimulus. GDP expanded 4.7% for the
second quarter, missing analyst forecasts of 5.1%. Weak consumption and
property continued to be a drag, challenging Beijing target of 5% annual
growth.
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Video Transcript:

China's fragile economic recovery continues to falter. Welcome to Asia Markets
Briefing. I'm Ramzan Karmali. The world's second largest economy grew at its
worst pace in five quarters, reviving expectations for fresh stimulus. GDP
expanded 4.7% for the second quarter missing analyst forecasts of 5.1%. Weak
consumption and property continued to be a drag, challenging Beijing's target
of 5% annual growth. Deflationary pressures persisted as retail sales growth
dropped to an 18-month low. Traders will be watching the Third Plenum and
meeting of China's top leadership that starts Monday, for policy support. The
focus is expected to be on cutting debt and boosting confidence, kickstarting
overall lackluster growth. Onto the markets now and Asian currencies slipped
against the Dollar in the wake of the assassination attempt on former
President Trump. The South Korean Won hit a two-week low. Bitcoin rose and the
Hang Seng slumped over concerns of a higher probability of another Trump
presidential term. China stocks, however, edged up as investors bet on more
stimulus after those disappointing GDP numbers. Japan was closed for a public
holiday. The Yen continues to be on watch after Tokyo is thought to have
intervened to prop up the currency last week. Analysts warn that thin
liquidity given the public holiday today could make ideal conditions for
another round of intervention. Strategists at Rabobank said the quiet session
offers the Bank of Japan, “more bang for their buck.” Turning to
commodities and all started the week higher. Political uncertainty in the
Middle East continued to support prices. Negotiations on ending the Gaza
conflict halted on Saturday, but a Hamas official said it had not withdrawn
from talks. As expected, China's central bank left a medium-term rate
unchanged. The People's Bank of China said it was keeping the rate on CNY100
billion, that's $13.8 billion in one-year medium term lending facility loans
to some financial institutions at 2.5%. Higher food prices pushed up wholesale
prices in India last month. They rose 3.36% in June from a year earlier. Food
prices were up 8.68% pushed up by vegetables, which rose by almost two-fifths.
Meanwhile, India's retail inflation rate rose for the first time in five
months in June. And Hyundai Motors and a union representing its South Korean
workers sealed a wage deal at the weekend. Pay will now go up by 4.65%. The
Union is one of the biggest in the country, with more than 43,000 members. The
world's third biggest car maker by sale has not experienced a strike since
2018. And that's it from your Asia Markets Briefing