EquitiesJul 15 2016

Asian markets steady as China records 6.7% GDP growth

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Asian markets steady as China records 6.7% GDP growth

Economic data from China showing a 6.7 per cent year on year increase in GDP growth in the second quarter has helped boost Asian stockmarkets.

The statement from the Chinese National Bureau of Statistics noted deepening reform and innovation and macroeconomic policy has meant the “national economy has achieved moderate but steady and sound development”. But it acknowledged: “We must be aware that the domestic and external conditions are still complicated and severe and the downward economic pressure remains.”

Markets across Asia were boosted by the figures with Hong Kong’s Hang Seng index gaining 0.2 per cent and Japan’s Topix index moving 0.5 per cent higher. But the Chinese Shanghai Composite index was less positive with a slight fall of 0.01 per cent.

European markets are less positive, with the EuroFirst 300 index down 0.2 per cent in early trading, following news of a suspected terror attack in France, while the French Cac 40 index is down 0.4 per cent.

In the UK the FTSE 100 index is slightly lower by 0.05 per cent, in spite of yesterday’s new government falling into place and a rally in sterling following the Bank of England’s surprise decision not to cut rates.

The pound has now moved above last week’s low levels, climbing 1.7 per cent yesterday and a further 0.2 per cent in early trading to sit at 1.34 against the US dollar.

In the US it was a brighter story as the S&P 500 index recorded a new high of 2,163.75 up 0.5 per cent as financials boosted the markets, with the Dow Jones index climbing 0.7 per cent.