Investing.com - Asian stock markets were lower on Monday, after official data showed that China’s economy expanded at an annual rate of 7.7% in the fourth quarter, down from 7.8% in the three months to September.
A separate report showed that industrial production in China rose by an annualized rate of 9.7% in December, compared to expectations for a 9.8% increase, after a 10% gain in the previous month.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.9%, Australia’s ASX/200 Index closed 0.2% lower, while Japan’s Nikkei 225 Index ended down 0.59%.
Shares in Hong Kong and mainland China were under pressure amid ongoing concerns over tightening liquidity conditions in the financial system and rising interbank lending rates.
Investors have remained cautious over the level of bad debt at Chinese banks, particularly when interbank lending rates are high.
China Construction Bank lost 1.8%, Industrial and Commercial Bank of China dropped 1.7%, while China Minsheng Bank and Agricultural Bank of China retreated 2% and 1.85% respectively.
Meanwhile, in Australia, the ASX/200 Index closed lower, albeit off the worse levels of the session, as losses in the financial sector weighed on the benchmark index.
National Australia Bank dipped 0.3%, while ANZ Banking Group and Westpac Banking Group declined 0.5% and 0.2% respectively.
Elsewhere, in Tokyo, the Nikkei ended lower as traders continued to monitor movements in the currency market.
USD/JPY fell to hit a daily low of 103.85, moving off the previous session’s high of 104.46. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Looking ahead, European stock market futures pointed to a lower open. The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.1%, London’s FTSE 100 futures indicated a decline of 0.1%, while Germany's DAX futures pointed to a drop of 0.4%.
Markets in the U.S. are to remain closed for the Martin Luther King Day holiday.