Asian markets were lower on Tuesday after the International Monetary Fund trimmed its global outlook for 2019 and 2020. The downgrade came after China said its economy grew at the slowest pace in 30 years in the last quarter of 2018. Wall Street was closed for a holiday on Monday.
Japan’s Nikkei 225 index
shed 0.5% and the Kospi
in South Korea was down 0.6%. Hong Kong’s Hang Seng
lost 0.9%. The Shanghai Composite index
fell 0.7%, as did the smaller-cap Shenzhen Composite
. Australia’s S&P ASX 200
slipped 0.4%. Shares fell in Taiwan
Among individual stocks, convenience store chain FamilyMart
surged in Tokyo while Dai-ichi Life
and Uniqlo parent Fast Retailing
fell. In Hong Kong, real estate investment companies Wharf
led gainers while tech companies such as AAC
, Sunny Optical
dropped. In South Korea, Samsung Electronics
fell, along with chip maker SK Hynix
. In Australia, banking stocks took a hit, with Australia and New Zealand Banking Group
and National Australia Bank
On Monday, the International Monetary Fund cut its 2019 global growth estimate to 3.5% from 3.7%, citing trade tensions and rising interest rates. It also revised its estimate for 2020 to 3.6%, down from 3.7%. IMF Managing Director Christine Lagarde, who presented the forecasts at the World Economic Forum in Davos, Switzerland, said the global economy was growing more slowly than expected amid rising risks. Earlier in the day, China reported its economy expanded by 6.6% in 2018. This was the slowest pace of growth since 1990 and it fueled fears a trade dispute with Washington is putting a drag on the world’s second largest economy.
“Against the backdrop of refreshed woes over growth and U.S. markets having been away for the Martin Luther King Jr. Day, there leaves little to inspire Asia markets,” Jingyi Pan of IG said in a commentary.
was 28 cents lower at $53.76 per barrel in electronic trading on the New York Mercantile Exchange. The contract added 3.3% to $54.04 per barrel in New York. Brent crude
, used to price international oils, dropped 47 cents to $62.27 per barrel. It closed at $62.74 per barrel in London.
eased to 109.44 yen from 109.65 yen late Monday.
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