China is battling deflationary pressures amid persistently weak demand
On the heels of yesterday's
bleak trade data, global markets were hit with another round of disappointing economic news out of China. Wholesale and consumer inflation on the mainland both fell short of expectations last month, offering further confirmation of cooling demand. While most Asian markets ended lower on the day, continued weakness in the yen and a well-received round of corporate earnings helped Japan's Nikkei eke out a 0.2% gain, notching its fourth win in a row. Elsewhere, Hong Kong's Hang Seng and South Korea's Kospi fell 1.4% each, while China's Shanghai Composite backpedaled 0.2%.
Stocks in Europe are lower at midday, taking their cues from Asia's generally gloomy session and
Wall Street's negative Monday finish. Mining stocks are among the top laggards, pressured by China's lackluster data and a Barclays downgrade to "neutral." At last check, the French CAC 40 and London's FTSE 100 have each given up 0.6%, while the German DAX is off 0.2%.
