Recession concerns are weighing on stock markets in Asia

Hong Kong Disappointing economic data from China at the start of the week unsettled the markets in Asia on Tuesday. In view of the weak industrial production and meager retail sales in China, investors feared a loss of demand in the second largest economy.

The Nikkei Index, which comprises 225 stocks, closed almost unchanged at 28,869 points. The broader Topix index fell 0.2 percent to 1,981 points. The Shanghai stock exchange was almost unchanged at 3274 points at the close of trading. So did the index of the most important companies in Shanghai and Shenzhen, which closed at 3274 points.

Analysts at Rabobank stated: “The risks of a global recession have suddenly become much clearer. On the other hand, for some they have always been clear. And does anyone think that if the central bank turns around at this stage, it will make it less likely?” China’s central bank braced itself against the economic slowdown in the wake of the corona crisis with a surprise cut in key interest rates on Monday.