Chinese stock markets took a hit today with key indices posting significant losses amid subdued economic data and concerns over global trade conditions. The Shenzhen Component Index and ChiNext Index fell over 2%, while the Shanghai Composite Index dropped 1.82%, closing at 3,297.10.
Key Updates:
- Economic Data: The Caixin/S&P Global manufacturing PMI for December declined to 50.5 from 51.5 in November, missing analysts’ expectations of 51.7. This reflects a slower expansion in factory activity, with export orders showing contraction for the fourth time in five months.
- External Challenges: Falling export orders and ongoing uncertainty regarding U.S.-China trade relations contributed to the market jitters. Threats of new tariffs and subdued global demand further dampened sentiment.
- Sector Performance: Major Chinese equities like Kweichow Moutai and China Life Insurance fell by 1.56% and 3.17%, respectively, reflecting broader market weakness. The CSI 300 Index also declined by 2.39%.
Global Outlook:
The latest data echoes calls for increased fiscal stimulus to drive growth, with investors remaining cautious as markets anticipate the U.S. Federal Reserve’s next moves. This marked a shaky start to 2025 for Asian equities, with lingering geopolitical concerns adding to the uncertainty.
