Asian stocks mostly close lower, with signs of Chinese slowdown

Stocks in Asia and the Pacific closed mostly lower on Monday (9), after data showed that the advance of Chinese exports reached the lowest level in almost two years, reinforcing fears about the outlook for the global economy.

In April, China’s exports expanded 3.9% year-on-year, in line with expectations, but far less than the 14.7% gain seen in March, in yet another indication that the zero-tolerance policy of Beijing against covid-19 continues to cause a strong slowdown in the world’s second largest economy.

In mainland China, markets made modest gains today: the Shanghai Composite rose just 0.09% to 3,004.14 points, and the less comprehensive Shenzhen Composite rose 0.35% to 1,865.92 points.

Elsewhere in the Asian region, however, the day was negative. The Japanese Nikkei fell 2.53% in Tokyo, at 26,319.34 points, while the South Korean Kospi dropped 1.27% in Seoul, at 2,610.81 points, and the Taiex registered a drop of 2.19% in Taiwan, at 16,048.92 points. In Hong Kong, the stock exchange did not operate on Monday due to a local holiday.

Expectations of interest rate hikes, particularly in the US, also undermine risk appetite in Asia. New York stock markets ended the last week with losses, after signs of resilience in the US labor market reinforced the view that the Federal Reserve (Fed, the US central bank) will continue to raise interest rates at a strong pace to combat inflationary pressures.

In Oceania, the Australian stock market followed most of the Asians, and the S&P/ASX 200 fell 1.18% in Sydney, at 7,120.60 points, ending the session at the lowest level since mid-March. With information from Dow Jones Newswires.