investingLive Asia-Pacific FX news wrap: China economic data not as strong as expected

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Japan’s Q2 GDP beat forecasts, lifting the yen and the Nikkei, while Chinese July data showed fresh weakness in home prices, industrial output, retail sales, and investment. Major FX moves were otherwise muted, with only small gains for GBP, CHF, EUR, and CAD against the USD.

The session’s main focus was preliminary Q2 GDP data from Japan and a fresh batch of Chinese economic indicators.

Japan’s Q2 GDP rose 0.3% q/q (est 0.1%; prev 0.0%) and 1.0% annualised (est 0.4%; prev –0.2%), marking a fifth straight quarterly expansion, with both consumption and capital spending rising in each of those quarters. The yen firmed and the Nikkei advanced on the stronger-than-expected figures.

From China, July new home prices fell again both m/m and y/y, though annual declines narrowed modestly across all city tiers. Economic activity data then showed industrial output up 5.7% y/y (est 5.9%; prev 6.8%) and retail sales up 3.7% y/y (est 4.6%; prev 4.8%). Fixed asset investment rose 1.6% in Jan–Jul versus a forecast 2.7% and 2.8% in H1.

Outside of yen strength on the Japanese data, major FX moves were limited. GBP, CHF, EUR, and CAD were all marginally higher against the USD.

Asia-Pac
stocks:

  • Australia
    (S&P/ASX 200) +0.45%
  • Hong
    Kong (Hang Seng) -1.25%
  • Shanghai
    Composite +0.26%
  • Japan
    (Nikkei 225) +1.01%

This article was written by Eamonn Sheridan at investinglive.com.