Asia-Pacific stocks slip as economists cut China’s GDP forecasts

SINGAPORE — Stocks in Asia-Pacific largely declined in Tuesday morning trade, as various firms downgraded China’s GDP forecasts.

Goldman Sachs on Tuesday slashed its China GDP growth expectations to 7.8%, down from the 8.2% previously forecast.

Nomura also expected China’s GDP to grow by 7.7% this year, down from a previous forecast of 8.2%.

Mainland Chinese stocks declined, with the Shanghai composite down 0.2% while the Shenzhen component fell 0.55%. Hong Kong’s Hang Seng index outperformed regionally as it gained 0.68%.

South Korea’s Kospi slipped 0.81%. SK Innovation shares jumped nearly 2% after the firm announced a plan with Ford Motor to invest more than $11 billion in new U.S. facilities to produce electric vehicles and batteries.

In Japan, the Nikkei 225 fell 0.72% while the Topix index shed 0.99%. The S&P/ASX 200 in Australia dipped 0.28%.

Australia’s retail sales fell 1.7% on a seasonally adjusted basis in August, data from the country’s Bureau of Statistics showed Tuesday. That was higher than market forecasts for a 2.5% decline, according to Reuters.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.29% lower.

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Overnight stateside, the Dow Jones Industrial Average climbed 71.37 points to 34,869.37 while the S&P 500 shed 0.28% to 4,443.11. The Nasdaq Composite dipped 0.52% to 14,969.97.

The mixed moves on Wall Street came as the 10-year Treasury yield briefly crossed 1.5% on Monday, its highest since June. It later retreated from those levels and last sat at 1.4802%. Yields move inversely to prices.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.491 — off levels above 93.4 seen recently.

The Japanese yen traded at 111.11 per dollar following a weakening from below 110.6 against the greenback yesterday. The Australian dollar changed hands at $0.727 after yesterday’s bounce from below $0.726.

Oil prices were little changed in the morning of Asia trading hours, with international benchmark Brent crude futures slipping about 0.1% to $79.47 per barrel. U.S. crude futures traded little changed at $75.46 per barrel.

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