Asian shares sink as China says 1Q growth at 4.8 per cent

BANGKOK

After China’s Monday report that its economy grew at 4.8% annually in January-March, shares fell in Asia.

In Tokyo, Seoul, and Shanghai, benchmarks were set. Hong Kong, Sydney and other locations were closed during holidays. Oil prices rose while U.S. futures were less.

Wall Street benchmarks dropped last week just before the Easter holiday.

China’s growth has fallen well below the official target of 5.5% for 2022. The economy grew 1.3% quarterly in the first quarter compared to 1.4% in 2021.

To combat the worst coronavirus outbreaks in China, authorities have shut down major cities like Shanghai. However, the most significant impact of the shutdowns is likely to be felt in the current quarter.

“Lockdowns are going to affect data for the whole of April, and maybe even longer as more cities are also adopting measures to bring COVID under control,” ING Economics researchers saidNote.

The Shanghai Composite index lost 0.2% at 3,203.69. Tokyo’s Nikkei225 index dropped 1.8% to 26,596.66. While the Kospi in Seoul fell 0.2% to 2,691.92. While Jakarta was the highest, Bangkok and other regional markets fell.

Monday’s trading in many global markets resumes. Attention is now on Ukraine. Ukrainian fighters were resisting the capture of Mariupol. After a 7-week siege they ignored a surrender-or die ultimatum from Russia.

The fall of Mariupol would be Moscow’s biggest victory of the war and free up troops to take part in a potentially climactic battle for control of Ukraine’s industrial east.

Ukraine was sending top officials to Washington for this week’s spring meetings of the International Monetary Fund and the World Bank amid dire warnings about the impact of the Russian invasion on the global economy.

Official of the World Bank said Friday that Ukraine’s prime minister, finance minister and central bank governor are coming. Because the official was not officially announced, the official spoke under anonymity.

The conflict has driven oil prices and other commodities up sharply, creating difficulties for policymakers trying to recover from the pandemic and also to reduce inflation which is at its highest point in 40 years in many countries.

To counter the destruction of the pandemic and to rein in price rises, central banks are increasing interest rates. They have been at record low levels for a long time. However, this can discourage investment and spending that are necessary to stimulate recovery.

“This morning another rise in oil prices is likely to fuel inflation fears, and rate hike jitters around the meaningful Fed action required to snuff those fears out,” Stephen Innes of SPI Asset Management saidIn a commentary

U.S. benchmark crude oil gained 92c to US$107.87 a barrel in electronic trading at the New York Mercantile Exchange. Before closing on Good Friday, it rose $2.70 per barrel to $106.95

Brent crude oil, which is used to price international oils, rose $1.09 per barrel to $112.79 per barrel

The dollar gained 126.57 Japanese Yuan from 126.44 yen in currency trading late Friday. From $1.0807, the euro dropped to $1.0803

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Joe McDonald from the AP Business Writing Team in Beijing contributed.