Asian stocks finished trading in the red zone. Indices fell on weak macroeconomic data from China, which demonstrated another confirmation of the economic growth weakening in the country, reports Bloomberg.
The composite index of MSCI Asia Pacific has decreased by 2.3%, to 131.18 points, which is its lowest level since February 2014. This week the indicator lost 5.1%.
China's Shanghai Composite fell 4.3%, to 3507.74 points; the indicator has risen above the level of 3500 points only in the last five minutes of the trading session.
In the Hong Kong, Taiwan and Indonesia markets, there is a totally negative trend.
The Hang Seng of Hong Kong dropped 1.5%, the Japanese Nikkei 225 fell 2.98%, and the Australian S&P/ASX 200 decreased by 1.4%.
"There is a feeling that we are back to the days of the Asian crisis of 1997 – observes Nicholas Teo, an analyst at CMC Markets in Singapore. – the “Domino effect” of the Chinese economy for the rest of the world turned out to be huge, and the deepening of the recession in China will have an impact on the market for another couple of months or so. "
The expert also noted that the increase in the base interest rate by the Federal Reserve could have devastating consequences for the markets.
It was reported that business activity in the manufacturing industry in China fell in August to its lowest level in 6 years - to 47.1 points. The value below 50 points indicates a decrease in production volumes. The PMI is already half a year in this zone, increasing investors' concerns about the stability of the Chinese economy.
According to EPFR Global, the outflow of funds of index funds of Asian countries, excluding Japan, for the week ending August 19 totaled more than $ 4 billion and went mainly to funds focused on China.
"Government interventions will not change the trend for market correction in China for the long term - believes the analyst at KGI Securities Co. in Shanghai, Ken Chen.
The cost of Air China shares on Friday fell 8.9%; the quotes of BYD Co. and Dongfeng Motor automakers decreased by 4.1% and 5.6%.
Japan's Nikkei lost this week 5.3%. Shares of major Japanese companies showed the most noticeable decline on Friday: the price of the Mitsubishi UFJ Financial Group fell 4.1%, Sumitomo Mitsui Financial Group fell 4.8%, and Toyota Motor Corp. decreased by 3%.