Chinese shares fell, weighing on broader Asian equities, after disappointing retail sales data showed the world’s second-biggest economy is still struggling to recover.
MSCI’s Asian equity gauge dropped for a second day, with benchmarks also falling in Australia and Japan. Materials and consumer discretionary stocks led regional declines, while a gauge of Asian currencies slid to a two-week low.
US equity futures edged up as traders positioned for a Federal Reserve policy decision on Friday. Bitcoin climbed to a fresh record.
While China’s retail sales increased 3% from a year ago, that undershot forecasts of 5% growth by economists surveyed by Bloomberg.
The nation’s stocks had already slumped on Friday amid disappointment after Beijing pledged to boost consumption but failed to offer details on fiscal stimulus.
The retail-sales data “is a reflection of the dire situation there and how the stimulus efforts have prioritized optics over delivering meaningful economic improvements,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore.
