Asian markets trimmed losses on a better-than-expected positive preliminary Chinese industrial production reading. This news helped temper concerns following the decline in US equities and curb losses. Oil prices continued to fall (-0,4%), while the New Zealand dollar weakened (-1,1% against the US dollar) due to a greater than expected slowdown in inflation. The MSCI Asia Pacific index was down 0,4% at 11:25am in Tokyo after rising yesterday to its best close since October 9th.
Data on Chinese and European manufacturing are expected later today. Investors look to economic data for clues to the health of the global economy. Hong Kong's Hang Seng index slipped by 0,3 percent in the morning.
“We are experiencing a period of volatility that they haven't experienced for at least a year and a half. In the immediate future, even in the case of growth markets, we will continue to see volatility in equities” comments Donald Williams, chief investment officer of Platypus Asset Management from Sydney. The oil problem "is on the supply side, but at the same time the European economy has weakened and demand is not as strong as it was six months ago". The Asia-Pacific stock index has fallen 2,4% since the beginning of this year.
Attachments: The Bloomberg article
