South Korea’s KOSPI index fell 1.7% amid regional market jitters, leading losses across Asia-Pacific as traders await China’s November retail sales, fixed asset investment, and industrial output figures. Markets are bracing for signs of economic momentum or further weakness in the world’s second-largest economy.
- KOSPI fell 1.7% to 2,783.45, leading Asia-Pacific losses
- China’s November retail sales expected to grow 3.8% YoY
- Fixed asset investment forecast at 3.5% growth, down from 3.9%
- Industrial output anticipated at 4.9% growth, slightly below October’s 5.2%
- CNY weakened to 7.2650, AUDUSD fell to 0.6412
- Industrial, consumer goods, and real estate sectors under pressure
South Korea’s benchmark KOSPI index dropped 1.7% to close at 2,783.45, marking its sharpest decline in three weeks and the worst performer in the Asia-Pacific region. The sell-off was driven by heightened anxiety ahead of China’s release of key November economic indicators, including retail sales, fixed asset investment, and industrial production. Investors are closely monitoring these data points for evidence of whether China’s post-pandemic recovery is gaining traction or faltering amid persistent deflationary pressures and weak consumer demand. The expected release of November retail sales, which analysts forecast to rise 3.8% year-on-year—down from October’s 4.4%—has sparked concern over tepid domestic consumption. Fixed asset investment, projected to grow 3.5% in November (slower than 3.9% in October), signals cautious capital spending. Industrial output, anticipated to expand 4.9%—a slight dip from 5.2% in October—adds to worries about demand for manufactured goods. These figures are pivotal for assessing the effectiveness of Beijing’s recent stimulus measures. The broader regional impact is evident: China’s CSI 300 index dipped 1.3%, while the Shanghai Composite (SHCOMP) declined 1.1%. The Chinese yuan (CNY) weakened slightly against the dollar, closing at 7.2650, while the AUDUSD pair dipped to 0.6412, reflecting broader risk aversion. Sectors sensitive to China’s demand—industrial, consumer goods, and real estate—led the declines, with major exporters like Samsung Electronics and Hyundai Motor seeing double-digit losses in early trading. Market participants remain on high alert, as China’s economic trajectory continues to influence commodity prices, currency flows, and regional equity valuations. With the data expected within the next 25 minutes, volatility is expected to spike further, particularly in equities linked to Chinese supply chains and export-driven economies.