Global Market Jitters Amid Middle East Tensions and Weaker Chinese Growth
Mainland China and Hong Kong stocks fell amid escalating Middle East tensions and weak economic data pointing to slowing growth in China. Investors were also anxious about potential monetary tightening by central banks to curb inflation, and a sub-index of consumer staples declined by 1.5%.
Financial markets in Mainland China and Hong Kong experienced a downturn on Monday as attention shifted from U.S.-China discussions to rising tensions in the Middle East and a global bond selloff. Additionally, a succession of disappointing economic activity data contributed to the negative sentiment.
By midday, China's Shanghai Composite and blue-chip indexes showed declines of 0.2% and 0.7% respectively. Hong Kong's Hang Seng Index bore the brunt, dropping by 1.4% amid the broader Asian market losses, tracking overnight declines on Wall Street.
The economic outlook was further strained as China's growth indicators for April failed to meet expectations due to higher energy costs stemming from conflicts in the Gulf, with industrial output and retail sales falling short. Meanwhile, a spike in oil prices and bond yields, driven by new Gulf attacks, added to investors' anxieties over central bank policy shifts to control inflation.
(With inputs from agencies.)
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