Asian stocks dropped Friday as traders weighed data showing slower U.S. economic growth and besides the potential influence of an impeachment inquiry of President Donald Trump.
The congressional inquiry into Trump is throwing more volatility into a market that already was nervous over U.S.-Chinese trade tension.
“The impeachment of Trump will now turn into a drawn-out saga that seems like annoying supermarket music,” Jeffrey Halley of Oanda stated in a report.
Also Thursday, the Commerce Department reported the U.S. economy grew at a modest 2% within the second quarter, sharply lower than the past year’s 3%-plus growth rates.
The Shanghai Composite Index SHCOMP, +0.11% flattened out on the last day of trading earlier than Chinese markets close for a weeklong holiday.
China’s industrial income dropped 2% in August from a year earlier, after rising 2.6% in July, the National Bureau of Statistics of China stated Friday. Disruptions from intense storms last month additionally contributed to it, Zhu Hong, an economist with the bureau, mentioned in a statement. For the first eight months, industrial earnings declined 1.7% on the year, the bureau indicated.
China’s producer prices fell additional into deflation last month, piling pressure on manufacturers that had been battling the extended trade struggle between China and the U.S., official information showed earlier. Meanwhile, value-added industrial output grew on the slowest pace in additional than a decade, underscoring sluggish demand and soft business confidence, the bureau mentioned.