BEIJING: Chinese stocks fell the most in a week after trade data signalled a deepening slowdown in the nation’s economy and sinking crude prices dragged on oil companies. The yuan, meanwhile, headed for its lowest close in four years.
The Shanghai Composite Index dropped 1.9pc to 3,470.07 at the close. Energy and material producers were the worst-performing industry groups after oil plunged to the lowest level in more than six years.
The CSI 300 Index retreated 1.8pc. The Hang Seng China index fell 1.9pc, dragged down by insurers, while the Hang Seng Index slipped 1.8pc. August 27.
China’s exports fell for a fifth month and a slump in imports extended to a record 13 months, suggesting six interest rate cuts and expedited fiscal spending are failing to boost growth.
Inflation data tomorrow is forecast to show producer price deflation deepened in November.
Meanwhile, the yuan weakened even after figures Monday showed the nation’s foreign-currency stockpile shrank to $3.44 trillion as the central bank sold dollars to prop up the currency.
“Overall, today’s data underscored the continued weakness we are seeing in global trade,” said Bernard Aw, a strategist at IG Asia Pte. in Singapore.
“The overnight plunge in oil prices warranted greater attention. Much of the sell-off this morning was attributed to weakness in the energy and material sectors.”
