China data fails to surprise by Magdalena Rosova

Asian shares fell on Thursday, but the Australian dollar retreated a bit. China disappointed in spite of its robust growth. China reported huge growth saying its economy surged 8.9 percent in the third quarter. This news and also the fact that retail sales and many others indicators were good in September, made many to think that Asian economy is finally recovering. But this outcome discouraged investors and gave them little to trade on. Hong Kong's Hang economic Seng Index fell 1 percent and shares in Shanghai were down 0.3 percent. Brian Jackson, a strategist at Royal Bank of Canada in Hong Kong, said the China's fast and impressive recovery was not a real picture of! what was going on in the whole region. Jackson suggests the China's recovery was caused by government big investments and aggressive bank lending. Thanks to expectation that strong China data would encourage traders to buy higher assets, the Australian dollar grew 0.3 percent. However, the China data disappointed and therefore the dollar slipped a bit, but recovered very quickly. There was another disappointment with the Chinese yuan. Expectations that growing Chinese economy would make Beijing to allow currency appreciation did not fulfill. Japan's economic Nikkei index fell 1.2 percent and data showed that Japanese exports dropped 30 percent in September. Japan now needs consumption in the United States to recover, because it is the main market for Japanese goods. Investors across the whole region were rather cautious when Wall Street experienced losses. But positive reports about earnings suggest that Asia is on a good path to recovery.

related story! (sgx15690): http://in.biz.yahoo.com/091022/137/bauegg.html...

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

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