Blow for China as economy slides back into deflation Business

Thanks for joining me. China edged back into deflation territory as the world’s second largest economy was hit by weaker consumer demand during public holidays.

The consumer price index fell 0.2pc in October, declining in large part as a result of a 30.1pc plunge in the price of pork.

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What happened overnight 

Asian share markets rallied, even as global investors again sold off the troubled mainland Chinese property sector.

Australian shares were up 0.3pc, while Japan’s Nikkei stock index rose 1.5pc.

Hong Kong’s Hang Seng Index reversed an early gain and was down 0.3pc in the afternoon while China’s bluechip CSI300 Index was 0.1pc higher.

China’s troubled property sector is being closely watched after most major stocks rallied on Wednesday following a Reuters report that Ping An Insurance Group had been asked by the Chinese authorities to take a controlling stake in Country Garden Holdings .

A spokesperson for Ping An said the company had not been approached by the government and denied the report.

The Hang Seng Mainland Properties Index shed 3.7pc and the Hang Seng Properties Index, which covers Hong Kong developers, was down 0.7pc.

On Wednesday, the S&P 500 rose 0.1pc and the Nasdaq Composite added 0.1pc. This extended their winning streaks to eight and nine consecutive sessions respectfully. The Dow Jones Industrial Average fell 0.1pc.

The two-year Treasury yield, which reflects interest rate expectations, rose two basis points to 4.938pc, while the yield on the benchmark 10-year note slid 6.2 basis points to just above 4.50pc.

Oil prices enjoyed a small bounce but made little impact on the losses of nearly seven percent seen in the previous two days caused by demand worries and easing fears over the Middle East crisis. 

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This notice was published: 2023-11-09 06:47:38

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