Asia stocks subdued as China data disappoints

Asian Stock Markets

Asian stocks put in a subdued performance on Tuesday as Chinese economic data disappointed and investors pondered whether a marked flattening in the U.S. yield curve might be a harbinger of a future slowdown there

China’s retail sales rose 10 percent on the year in October, while industrial output grew 6.2 percent. Both came in under market forecasts and briefly hit the Australian dollar, which is often used as a liquid proxy for China wagers. 

The immediate damage was limited in stocks with the blue-chip CSI300 index off 0.4 percent and EMini futures for the S&P 500 down 0.1 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.17 percent after two sessions of declines, while Australia fell 0.9 percent.

Japan’s Nikkei managed to recoup 0.4 percent after four sessions of losses, but spreadbetters pointed to softer starts for the main European bourses.

Investors were waiting for any signs of compromise on U.S. tax policy after U.S. Senate Republicans on Thursday unveiled a plan that would cut corporate taxes a year later than a rival House of Representatives’ bill.

Also on the menu are no fewer than 13 central bank speakers, including the heads of the U.S., European, British and Japanese central banks.

On Wall Street, a sharp drop in General Electric shares was offset by gains in high dividend-paying sectors including consumer staples and utilities.

The Dow rose 0.07 percent, while the S&P 500 added 0.10 percent and the Nasdaq 0.1 percent.

General Electric slashed its dividend by 50 percent and cut its profit forecast while unveiling a plan that narrowed its focus on aviation, power and healthcare.

Currency markets were mostly quiet, with the dollar barely changed against a basket of counterparts at 94.488. The euro was up a slim 0.05 percent at $1.1671.

Sterling hovered at $1.3117, having fallen as far as $1.3063 on Monday amid concerns British Prime 

Minister Theresa May was losing her grip on power.

May’s blueprint for Britain’s departure from the EU faces a crucial test starting on Tuesday, when lawmakers try to win concessions on legislation to sever ties.

The dollar was steady at 113.67 yen after bouncing from 113.25 support overnight.