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Asian shares struggled on Monday ahead of China data that is likely to amplify the case for serious stimulus even as Beijing seems deaf to the calls, while rising Treasury yields pressured sky-high valuations on tech stocks and underpinned the dollar.
Geopolitics was an added worry after a Russian warship on Sunday fired warning shots at a cargo ship in the southwestern Black Sea, heralding a new stage of the war that could impact on oil and food prices.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased another 0.2 percent, after shedding 2 percent last week. Japan’s Nikkei was off 0.1 percent, though exporters have drawn support from the weak yen.
Chinese blue chips also lost 3.4 percent last week amid a string of disappointing economic news, culminating in a dire report on new bank loans in July.
Figures on retail sales and industrial output are due Tuesday and analysts assume they will underwhelm, keeping downward pressure on the yuan.
Adding to concerns about the deteriorating health of the country’s debt-laden property developers was news two Chinese listed companies had not received payment on maturing investment products from Zhongrong International Trust Co.
China’s Country Garden, the country’s top private property developer, is also set to suspend trading of its 11 onshore bonds from Monday.
