China’s economic growth slows as US and European demand remains weak


China's economic growth in the first quarter of 2012 dipped to a slower than expected 8.1%, down from 8.9% the previous quarter and the slowest rate in three years. While most economists had projected 8.3% growth, weak demand from the US and Europe coupled with the reluctance of Chinese consumers dented gross domestic product. Furthermore, the World Bank cut its projections for Chinese growth in 2012 to 8.2% from 8.4%

While Asian markets still showed gains, European markets were down across the board.

By early afternoon today, London's FTSE had fallen 0.66%, the German DAX had tumbled 1.13% and the French CAC 40 had depreciated 1.63%. The euro fell 0.44 to $1.3126, while the British pound depreciated 0.19% to $1.5927.

Overnight, Australian stocks ( EWA , quote ) climbed 0.97%. Despite the dip in China's GDP, Australian miners got a boost with the rise in oil and commodities prices overnight. BHP Billiton stock climbed 1.68%, and Rio Tinto shares jumped 2.31%

Tokyo's Nikkei ( EWJ , quote ) rose 1.19%. Despite Sony CEO Kazuo Hirai's announcement this week that he would cut 10,000 jobs over the next year, the electronics firm's stock plummeted 5.50%.

Elsewhere in the region, Singaporean shares ( EWS , quote ) climbed 0.33% and in China, the Shanghai Composite ( YAO , quote ) got a boost of 0.35%. Seoul's KOSPI ( EWY , quote ), meanwhile, climbed 1.12%.

The Chinese yuan fell 0.07% to 6.3022 to the dollar, while the Japanese yen appreciated 0.21% to 81.01 against the greenback.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , International , Stocks

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