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China shares down despite growth data | |
(about 2 hours later) | |
Chinese shares were lower despite the world's second largest economy posting second quarter growth above expectations. | |
China's economy expanded 7% in the second quarter compared to a year ago - unchanged from the previous quarter when growth was at the lowest level since the global financial crisis. | |
The data failed to excite investors. | |
The Shanghai Composite was down by 2.4% at 3,830.49, and the Hang Seng index fell 0.4% to 25,018.72 points. | |
The country's industrial output, which measures production at factories, workshops and mines, also beat forecasts, up 6.8% in June from the previous year. | The country's industrial output, which measures production at factories, workshops and mines, also beat forecasts, up 6.8% in June from the previous year. |
Julian Evans-Pritchard, China economist at Capital Economics said there were plenty of positive signs on broader economic momentum in the growth figures. | |
"One reason is that the surge in brokerage activity associated with the equity bubble feeds directly into the service sector component of gross domestic product (GDP)," he said in a note. | |
"As long as spending on brokerage services didn't come at the expense of growth elsewhere, headline GDP growth will have been stronger as a result." | |
US rates hints | US rates hints |
Investors were also cautious ahead of the congressional testimony by US Federal Reserve chair Janet Yellen later on Wednesday. | |
They will be watching for hints regarding the timing of an interest rate rise in the US. | |
Ms Yellen said last week that the Fed was looking to lift rates at some point this year, but an unexpected drop in US retail sales in June raised concerns that the world's top economy may be slowing. | Ms Yellen said last week that the Fed was looking to lift rates at some point this year, but an unexpected drop in US retail sales in June raised concerns that the world's top economy may be slowing. |
Japan's benchmark Nikkei 225 was up 0.4% at 20,461.76 after the central bank's decision to leave interest rates unchanged. | |
The Bank of Japan wrapped up its two-day meeting on monetary policy on Wednesday. | |
In Australia, the S&P/ASX 200 index was up 1% to 5,632.20 - leading the region's gains on the China data. | |
China is Australia's biggest export market. | |
South Korean shares were up after data showed that its unemployment rate for June was unchanged from the previous month at 3.9%. | |
The country's benchmark Kospi index was up 0.4% at 2,067.77 points. | |