Asian Shares Mixed After China Admits Growth Slid In 2nd Quarter

Asia's stock markets were mixed on Friday, July 15, 2022, following news that China's economy dropped by 2.6% in the previous quarter due to virus-related business closures and consumers staying at home, Elaine Kurtenbach and Joe McDonald reported for the Associated Press (AP).

Photo Insert: On Wall Street on Thursday, the S&P 500 lost 0.3% to 3,790.38. Although the Nasdaq was up 1.83%, almost three out of every four benchmark index equities closed in the red, the Dow Jones declining by 0.5%.

The Nikkei 225 index increased 0.6% to 26,797.47. The Kospi in Seoul increased 0.1% to 2,324.29, and stocks also increased in India and Taiwan. The Shanghai Composite index fell 0.2% to 3,273.87 points.

The S&P/ASX 200 in Australia fell 1.1% to 6,578.50, while the Hang Seng in Hong Kong fell 0.7% to 20,594.

According to official data, the Chinese economy contracted by 2.6% compared to the already sluggish quarterly growth rate of 1.4% from January to March. Compared to a year ago, which might mask recent swings, growth dropped to a meager 0.4% from 4.8% in the previous quarter.

In late March, anti-virus controls shut down Shanghai, the site of the world's biggest port, and other manufacturing areas, fanning fears of a disruption in global trade and industry. Millions of families were confined to their homes, resulting in a decline in consumer spending.

On Wall Street on Thursday, the S&P 500 lost 0.3% to 3,790.38. Almost three out of every four benchmark index equities closed in the red.

The Dow Jones Industrial Average decreased by 0.5%. Small-company equities declined more than the market as another indication that investors are concerned about economic expansion. The Russell 2000 index declined 1.1% to 1,707.51.

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