Asian stocks trim losses as China beats GDP forecasts
Asia’s shares pared losses on Tuesday as China’s economy recorded a stronger-than-expected recovery from punishing pandemic lockdowns last year that led to a major slowdown.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.2%, a smaller decline than the 0.4% fall earlier in the session.
China’s economy grew 4.5% year on year for the first quarter which eclipsed the expectations of most economists.
The currencies of Australia and New Zealand , whose exports are reliant on Chinese demand, both popped higher after the GDP data.
Hong Kong’s Hang Seng Index (.HSI) was down 0.4% in early trade on Tuesday while China’s bluechip CSI300 Index (.CSI) gained 0.3%.
“On balance, quite an encouraging report with retail sales, GDP and property sales coming in higher than expected … reinforces the story that recovery momentum post-pandemic remains intact,” said Christopher Wong, a currency strategist at OCBC in Singapore.
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