Asia stocks fall as weak China data weigh

Asia stocks hit a 11-week low on Wednesday as renewed concerns about U.S. interest rates slugged Wall Street, while investors still smarted from dismal Chinese economic data and the absence of meaningful stimulus.

MSCI’s gauge of Asia Pacific stocks outside Japan was down 1.1% at 0138GMT, touching its lowest point since June 1.

Japan’s Nikkei 225 index slipped 1.3% to its lowest since July 12. Australia’s S&P/ASX 200 index fell nearly 1.5%.

China reported weaker than expected July activity data Tuesday, accompanied by news that Beijing would no longer publish youth unemployment data.

The PBOC also unexpectedly lowered its policy rate on Tuesday, earlier than many investors had expected and possibly probably triggered by the string of disappointing data on loans and credit, the housing market and trust industry as well as the threat of deflation.

“Investors sentiment toward China is pretty bad,” said Redmond Wong, Greater China market strategist at Saxo Markets.

Wong said he was most concerned about month-to-month decline of China’s retail sales and weak infrastructure investments, which suggested lack of funding from local governments.

China’s industrial output and retail sales growth both slowed from a month earlier to a year-on-year pace of 3.7% and 2.5% respectively, missing expectations.

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