Posted on 08/10/2022 4:16:24 AM PDT by EBH
SINGAPORE — Asia-Pacific shares fell on Wednesday as investors digest inflation data from China and look ahead to the U.S. CPI report.
Hong Kong’s Hang Seng index fell 1.96% to close at 19,610.84, with the Hang Seng Tech index down 2.83%. Heavyweights Meituan and JD.com fell 3.64% and 4.46% respectively.
Heath care, consumer and real estate stocks also dragged the Hang Seng lower, according to Eikon data.
Property developer Longfor plunged 16.4% after the company reported that contracted sales for the first seven months of the year dove nearly 58% compared with the same period a year ago.
Mainland China markets slipped, with the Shanghai Composite 0.54% lower at 3,230.02, and the Shenzhen Component down 0.87% at 12,223.51.
China’s producer price index for July rose 4.2% from a year ago, lower than the 4.8% increase predicted in a Reuters poll.
Consumer prices increased 2.7% in July compared with the same period in 2021, the most since July 2020. Analysts expected the print to stand at 2.9%.
“Underlying inflation pressures remain limited in China because sporadic lockdowns have weighed on consumer spending and overall economic activity,” Carol Kong, a senior associate, international economics and currency strategy at Commonwealth Bank, wrote in a Wednesday note ahead of the data release.
(Excerpt) Read more at cnbc.com ...
Don’t say “recession”!!!!
Recap from Morning Star:
China’s consumer price inflation quickened in July to a two-year high, with a surge in pork prices pushing up the cost of food. China’s consumer price index grew less than expected at 2.7% from a year ago in July, National Bureau of Statistics data showed. Growth of 2.9% was expected. It had advanced 2.5% in June. The producer price index – measuring the cost of goods at the factory gate – rose 4.2% in July, down from 6.1% in June.
Producer price growth in Japan was hotter than expected in July. According to the Statistics Bureau of Japan, producer prices advanced 8.6%, beating an FXStreet cited forecast of an 8.4% rise. Growth slowed from 9.4% in June. On a monthly basis, prices rose 0.4% in July, slowing from a 0.9% in June.
Consumer prices in Germany rose at a slower pace in July, the Federal Statistical Office said, continuing a trend seen since May, but inflation remained elevated. Annually, consumer price inflation was 7.5% in July, confirming flash estimates, falling back slightly from 7.6% in June and 7.9% in May. On a monthly basis, prices rose by 0.9% in July from June, having risen by 0.1% in June from May. On a harmonised basis, designed for EU-wide comparison, Germany’s annual inflation rate warmed up to 8.5% from 8.2% in June. On a monthly basis, prices rose by 0.9%, having declined by 0.1% in June.
Germany will offer tax relief worth EUR10 billion to help workers cope with soaring inflation, Finance Minister Christian Lindner said. The package will raise base tax-free allowance as well as bring up the level from which the top income tax rate of 42% will apply. Families will also benefit from higher tax exemptions for dependent children.
As bad as ours is, their economy is positively schizophrenic.
CC
If the MAIN STREAM press is saying this, it probably is about 10X worse than it actually is. Go to Americasvoice.news and get the facts.
July CPI came in at 8.5 estimated to be 8.7.
Pre-market dow is up about 400 at 8:35 est
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