Global inflation worries are not bypassing investors in Asia either.
(Photo: dpa)
Frankfurt Investors in Asia continue to fear the consequences of rising inflation. “We believe the risk of stagflation is increasing in China as it is in the rest of the world,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “The ambitious goal of carbon neutrality puts sustained pressure on raw material prices that is passed on to the downstream companies.”
Due to high raw material costs, power outages and delivery bottlenecks, Chinese industrial companies raised their prices more sharply than expected in September. The producer price index rose by 10.7 percent compared to the same month of the previous year and thus faster than ever since data collection began in October 1996.
In China, real estate companies also came under pressure after other property developers warned of payment defaults. With more than 300 billion dollars in debt, real estate developer China Evergrande failed to make interest payments on its international bonds for the third time in three months, and thus scared off investors.
The crisis in the industry caused the rating agency S&P Global to downgrade the two industry heavyweights Greenland Holdings and E-house. At the same time, the analysts warned that they could lower their ratings further.
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The index of the most important companies in Shanghai and Shenzen lost 0.5 percent. The Shanghai stock exchange was stable. In Tokyo, the Nikkei index rose 1.5 percent to 28,551 points. As before on Wall Street, tech stocks were the most sought-after. Tokyo Electron was the strongest stock in the Nikkei with a price increase of around five percent, Advantest shares rose around four percent.
More: US stock exchanges make up for losses – tech stocks in demand