Australian Markets Trim Losses on China Economic Data

Marcus Jacob
20 Jan, 2014
New York City

Australian stocks reacted to better than expected economic data from China and trimmed early losses. China

[R]4:30 PM Sydney – Australian stocks reacted to better than expected economic data from China and trimmed early losses. China’s economy in the fourth quarter expanded at 7.8% and retail sales in December soared 13.6% and industrial production surged 9.7% in the month.[/R]

Australian market indexes trimmed losses from the morning decline of 0.8% after China reported faster than expected economic growth and retail sales.

Economy in China expanded at 7.7% annual rate in the December quarter after expanding at 7.8% in the September quarter, National Bureau of Statistics said in Beijing.

Retail sales in China surged 13.6% in December from a year ago after rising 13.7% in November, statistics agency said.

Industrial production increased 9.7% in December matching the increase in November and fixed assets investment rose 9.7% from a year ago month.

Australian dollar declined 87.79 U.S. cents and dropped to a three and a half year low and stock trading turnover slipped to 591 million shares worth $3.2 billion.

The ASX 200 index slid 10.90 to close at 5,295 and the broader All Ordinaries fell 8.80 to 5,307.60.

Stocks in Review

Rio Tinto rose 16 to $66.49. BHP added 11 cents to $38. Woodside Petroleum Limited slipped 32 cents to $38.80.

Westpac slumped 23 cents to $31.60.

Decmil Group Limited climbed 4.7% to $2.02 after the engineering and construction group secured contract for the design and construction of the Woodstock Marble Bar Road with Atlas Iron Limited worth $34 million.

Paladin Energy Ltd rose 0.9% or 56.5 cents after the uranium producer plans to sell 25% stake in Langer Heinrich in Namibia to a state-owned China National Nuclear Corp. for $190 million.

Telstra Corporation Ltd slid 0.2% to $5.23 after the telecommunication company acquired a Melbourne-based provider of network and security consulting and integration services called O2 Networks with a staff of 100.