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Asia stocks mixed after China data, U.S. default fears grow

Published 10/14/2013, 02:40 AM
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Investing.com - Asian stock markets were mixed in holiday-thinned trade on Monday, following the release of Chinese trade and inflation data, while a U.S. government shutdown dragged on for a third week with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.

During late Asian trade, Australia’s ASX/200 Index ended 0.44% lower, while Japan’s Nikkei 225 Index and Hong Kong's Hang Seng Index remained closed for a public holiday.

Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.

Markets were also growing increasingly concerned over negotiations to raise the U.S. debt ceiling. The U.S. risks a sovereign debt default if the government borrowing limit is not raised by October 17.

Meanwhile, data released earlier in the day showed that consumer price inflation rose 3.1% in September, above expectations for a 2.9% increase and accelerating from 2.6% in August.

The inflation report came one day after data showed that China’s trade surplus narrowed sharply in September as exports declined unexpectedly, fuelling concerns over the global economy.

China’s trade surplus narrowed to USD15.2 billion last month from a surplus of USD28.6 billion in August, compared to estimates for a surplus of USD27.7 billion.  

Chinese exports fell 0.3% from a year earlier, defying expectations for a 6% increase and following a 7.2% gain in August.

Market players now looked ahead to a raft of Chinese economic data later in the week, including reports on inflation, gross domestic product, industrial production and retail sales.

In Australia, the ASX/200 Index inched lower as miners declined amid concerns over the global economic outlook.

Shares in OZ Minerals plunged 9.3% after the copper producer lowered its full-year copper-production outlook for the second time this year earlier Monday.

Gold miners declined as prices of the precious metal hovered near a three-month low in New York. Newcrest Mining lost 3.8%, Kingsgate Consolidated shed 3.3%, while Perseus Mining tumbled 5.2%.

Looking ahead, European stock market futures pointed to a lower open.

The EURO STOXX 50 futures pointed to a loss of 0.7% at the open, France’s CAC 40 futures fell 0.7%, London’s FTSE 100 futures indicated a drop of 0.8%, while Germany's DAX futures pointed to a decline of 0.65% at the open.

Trade volumes were likely to remain light on Monday, with U.S. markets to remain closed for the Columbus Day holiday. The euro zone was to release data on industrial production later in the trading day.

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