World shares mixed after China reports slowing growth

Jan 16, 2022, 11:39 PM | Updated: Jan 17, 2022, 5:34 am

BANGKOK (AP) — World shares were mixed on Monday after China reported that its economy expanded at an 8.1% annual pace in 2021, though growth slowed to half that level in the last quarter.

Paris, Frankfurt, Tokyo and Shanghai advanced while Hong Kong and Seoul declined.

The weakness in China’s economy toward the end of 2021 is prompting suggestions Beijing should intervene to prop up growth with interest rate cuts or by injecting money into the economy through public works spending.

Shortly before the growth data were released, the Chinese central bank announced a rate cut on medium-lending to commercial banks to the lowest level since 2020.

“Economic momentum remains weak amid repeated virus outbreaks and a struggling property sector,” Julian Evans-Pritchard of Capital Economics said in a commentary. He expects China’s policymakers to keep limits on lending relatively tight and control credit growth.

“The upshot is that policy easing is likely to soften the economic downturn rather than drive a rebound,” he said.

Slowing activity in China, the region’s biggest economy, can chill growth throughout the region. Lockdowns and other precautions imposed to combat outbreaks of coronavirus can also worsen shortages of key parts and components, adding to difficulties with shipping and supply chains.

The Shanghai Composite index gained 0.6% to 3,541.67, while Hong Kong’s Hang Seng dropped 0.7% to 24,218.43.

South Korea’s Kospi sank 1.1% to 2,890.10 after North Korea fired two suspected ballistic missiles into the sea early Monday in its fourth weapons launch this month, South Korea’s military said, with the apparent goal of demonstrating its military might amid paused diplomacy with the United States and pandemic border closures.

Germany’s DAX gained 0.2% to 15,910.54 and the CAC 40 in Paris also was up 0.2%, at 7,156.53. Britain’s FTSE 100 jumped 0.7% to 7,592.79. The future for the S&P 500 picked up 0.2% while that for the Dow Jones Industrial Average edged 0.1% higher.

In Asian trading, Tokyo’s Nikkei 225 advanced 0.7% to 28,333.52 as the government reported machinery orders rose in November as private investment and manufacturing activity improved during a lull in coronavirus outbreaks. Shipbuilders orders surged 170%.

Australia’s S&P/ASX 200 climbed 0.3% to 7,417.30.

On Friday, the S&P 500 eked out a 0.1% gain, closing at 4,662.85. The tech-heavy Nasdaq surged 0.6% to 14,893.75. The Dow Jones Industrial Average fell 0.6% to 35,911.81.

Smaller company stocks also bounced back from an early slide. The Russell 2000 index rose 0.1%, to 2,162.46.

A rally in technology stocks, plus gains in energy and other sectors, helped outweigh declines in banks and elsewhere in the market on a day when investors were mainly focused on a mix of company earnings reports and discouraging data on retail sales.

The mixed finish capped a week of choppy trading on Wall Street that deepened the market’s January slump. The benchmark S&P 500, which soared 26.9% in 2021, is now about 2.8% below the all-time high it set on Jan. 3.

The yield on the 10-year Treasury was steady at 1.79%.

The price of U.S. crude oil rose 30 cents to $84.12 per barrel in electronic trading on the New York Mercantile Exchange. On Friday, it rose 2.1%, helping to send energy stocks higher.

Brent crude added 6 cents to $86.12 per barrel.

The U.S. dollar rose to 114.32 Japanese yen from 114.18 yen. The euro climbed to $1.1430 from $1.1417.

___

AP Business Writer Joe McDonald in Beijing contributed.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Police and other first responders work the scene where officials say dozens of people have b...
Associated Press

Texas’ border mission grows, but crossings still high

AUSTIN, Texas (AP) — Following the horror of a human-smuggling attempt that left 53 people dead, Republican Gov. Greg Abbott ordered state troopers to inspect more trucks — again expanding a border security mission that has cost billions, given the National Guard arrest powers and bused migrants to Washington, D.C. What Abbott’s get-tough plans haven’t […]
8 hours ago
Travelers arrive on foot at Roissy-Charles de Gaulle airport while airport workers demonstrate, lef...
Associated Press

Stuck bags add to tangles at Paris airports amid travel boom

Airlines worked Saturday to deliver luggage to passengers around the world after a technical breakdown left at least 1,500 bags stuck at Paris’ Charles de Gaulle airport, the latest of several tangles hitting travelers this summer. The airport’s baggage sorting system had a technical malfunction Friday that caused 15 flights to depart without luggage, leaving […]
8 hours ago
FILE - In this Feb. 17, 2018, file photo, an early morning fog rises where 17 memorial crosses were...
Associated Press

Parkland jurors must manage trial stress on their own

FORT LAUDERDALE, Fla. (AP) — The jurors chosen this past week to decide whether Florida school shooter Nikolas Cruz is executed will visit a bloodstained crime scene, view graphic photos and videos and listen to intense emotional testimony — an experience that they will have to manage entirely on their own. Throughout what is expected […]
8 hours ago
FILE - An overnight individual egg strata is shown April 4, 2016, in Concord, N.H. Federal regulati...
Associated Press

From AM to PM, the fickle force of government is with you

WASHINGTON (AP) — When you groggily roll out of bed and make breakfast, the government edges up to your kitchen table, too. Unlike you, it’s perky. It’s an unseen force in your morning. The government makes sure you can see the nutrients in your cereal. It fusses over your toast, insisting that the flour it […]
8 hours ago
FILE - Boxes of the drug mifepristone line a shelf at the West Alabama Women's Center in Tuscaloosa...
Associated Press

Medication abortion is common; here’s how it works

Medication abortions became the preferred method for ending pregnancy in the U.S. even before the Supreme Court overturned Roe v. Wade. These involve taking two prescription medicines days apart — at home or in a clinic. Abortion procedures are an invasive medical technique that empties the womb. They are sometimes called surgical abortions, although they […]
8 hours ago
FILE - Children and adults take advantage of the warm weather to cool off at the Trago Spray Park o...
Associated Press

For now, wary US treads water with transformed COVID-19

The fast-changing coronavirus has kicked off summer in the U.S. with lots of infections but relatively few deaths compared to its prior incarnations. COVID-19 is still killing hundreds of Americans each day, but is not nearly as dangerous as it was last fall and winter. “It’s going to be a good summer and we deserve […]
8 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
World shares mixed after China reports slowing growth