Stock Market Update: Asian Shares Slip As China Says Economy Hit 5% Growth Target In 2024

Bangkok: Shares were mostly lower in Asia on Friday after China reported that its economy grew at a 5 per cent annual pace last year, hitting government target but slowing from the year before. U.S. futures edged higher, and oil prices also climbed. Strong exports and policies aimed at spurring more consumer spending and investment helped drive a boom in manufacturing, which jumped nearly 6 per cent from a year earlier, the Chinese government reported. Share benchmarks in China showed a scant reaction, given that the 5 per cent annual growth matched the government target for “about 5 per cent” growth in 2024. In quarterly terms, the economy grew 5.4 per cent in October-December.

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Economists are forecasting a further slowing of growth this year and beyond, and President-elect Donald Trump's threats to raise U.S. tariffs on Chinese goods have added to Beijing's challenges as it faces a raft of moves by Washington to limit access to advanced technology, such as computer chips used in artificial intelligence. Hong Kong's Hang Seng index slipped 0.1 per cent to 19,509.68, and the Shanghai Composite index fell 0.1 per cent to 3,231.30. In Tokyo, the Nikkei 225 index lost 1 per cent to 38,193.05, while the Kospi in Seoul shed 0.3 per cent to 2,521.46. Australia's S&P/ASX 200 edged 0.1 per cent lower to 8,316.70. Taiwan's Taiex fell 0.1 per cent, even though computer chip maker Taiwan Semiconductor Manufacturing Corp., or TSMC, reported Thursday that its profit in the last quarter jumped 57 per cent. The world's biggest semiconductor manufacturer — which has found itself in the middle of a trade and technology rift between the U.S. and China — said its results were propelled by the artificial intelligence boom.

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Its stock that trades in the United States rose 3.9 per cent on Thursday. Early Friday, its Taiwan-traded shares were up 3.9 per cent. The Sensex in India advanced 0.4 per cent. In other dealings early Friday, US benchmark crude oil rose 43 cents to USD 79.11 per barrel. Brent crude, the international standard, was up 33 cents at USD 81.62 per barrel. The U.S. dollar rose to 155.42 Japanese yen from 155.22 yen late Thursday. The euro was unchanged at USD 1.0306. On Thursday, U.S. stock indexes drifted lower Thursday following a mixed set of earnings reports from Morgan Stanley, UnitedHealth Group and other big companies. The S&P 500 slipped 0.2 per cent to 5,937.34. Gainers outnumbered losers but drops for some influential stocks like Tesla outweighed advances. 

Asian shares slip as China hits target.

Tesla fell 3.4 per cent on information that it is offering discounts on its Cybertruck, the latest sign that Elon Musk's company is struggling to attract buyers as sales of its electric vehicle models drop for the first time in a dozen years. The Dow Jones Industrial Average dropped 0.2 per cent to 43,153.13, and the Nasdaq composite fell 0.9 per cent to 19,338.29. The relatively modest moves for stocks came a day after they shot higher on hopes that an encouraging report on inflation might convince the Federal Reserve to deliver more cuts to interest rates this year. Treasury yields were also more placid in the bond market following mixed economic reports on Thursday. One report showed growth for sales at U.S. retailers was not as strong last month as economists expected. Another said more U.S. workers filed for unemployment benefits last week, and a third said manufacturing in the mid-Atlantic area unexpectedly roared back to growth.

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Taken together, the trio of reports suggests the U.S. economy is nowhere near a recession but may be showing some signs of slowing that could keep pressure off inflation. Markets have been lurching down and up in recent weeks as economic reports force traders to revamp their expectations about what the Federal Reserve may do with interest rates in 2025. UnitedHealth Group tumbled 6 per cent. The insurer reported a stronger profit than expected, but its revenue for the latest quarter came up shy of forecasts. It was the company's first financial report since the shooting of one of its executives outside a New York City hotel early last month.