It is no secret that countries around the world are struggling to cope with issues related to coronavirus pandemic. Unfortunately, it is hard to determine, how long it will take to stabilize the global economy. Moreover, investors are closely monitoring the situation as they want to know what is going on with the economy of China. It was a tough day for Chinese stocks on Friday.
Recently, China’s National Bureau of Statistics released information regarding industrial profits. Interestingly, profits surpassed expectations. Last month, the country’s industrial output added 3.9% year-on-year. Notably, it was the first expansion in 2020 from China. Analysts expected the industrial output to increase by 1.5%.
Nevertheless, retail sales declined by 7.5% in April. Hopefully, China was able to restart its economy following lockdown measures. The coronavirus pandemic had a huge impact on the local economy as well as on the global economy. People should take into account that the world’s second-largest economy had to tackle numerous challenges due to the coronavirus pandemic.
Governments across the globe are willing to do whatever it takes to support the economy. Private and state organizations should work together to avert the worst-case scenario.
Stocks in Asia and the economy of China
Last week on Friday stocks in Asia reflected on the news connected with industrial profits. As stated above, industrial profits exceeded expectations. People should take into account that, it will take time but the economy will get back on track.
The Shanghai Composite slightly fell to around 2,868.46. In the meantime, the Shenzhen Composite added 0.159% to about 1,808.56.
In Japan, Nikkei 225 added 0.62% to 20,037.47. Moreover, the Topix index gained 0.5% to end its trading day at 1,453.77.
South Korea’s Kospi index gained 0.12% to close at 1,927.28.
Furthermore, Australia’s S&P/ASX 200 rose 1.43% to 5,404.80 as shares of major miner BHP added 3.46%.