Stock indices across the Asia-Pacific region edged lower as investors braced for China’s pivotal fourth-quarter GDP release and weighed ongoing geopolitical developments involving Greenland. Market participants are closely monitoring key economic indicators for signs of recovery in the world’s second-largest economy.
- CSI300 declined 0.7%, SHCOMP dropped 0.9% ahead of China’s Q4 GDP release
- U.S. dollar index (DXY) rose to 105.3, reflecting risk aversion
- AUDUSD fell 0.3% to 0.6521; EURCNY stable at 7.24
- Copper futures down 0.5% on China demand concerns
- Markets awaiting Q4 GDP data with expectations for growth above 5.0%
- Geopolitical developments in Greenland contributing to regional uncertainty
Asian equity markets opened lower Thursday, with the CSI300 index falling 0.7% and the SHCOMP shedding 0.9%, reflecting cautious sentiment ahead of China’s release of its fourth-quarter GDP data. Traders are assessing a range of economic metrics, including industrial output, retail sales, and fixed-asset investment, with expectations pointing to a modest rebound in growth. The broader regional sentiment was also influenced by developments in Greenland, where recent diplomatic overtures between Nordic nations and the U.S. sparked speculation over strategic resource access and military positioning. The U.S. dollar index (DXY) rose 0.4% to 105.3, indicating a flight to safe-haven assets amid uncertainty. Meanwhile, the AUDUSD pair dipped 0.3% to 0.6521, while EURCNY held steady at 7.24, suggesting cautious positioning in global FX markets. Commodities, particularly base metals and energy, saw mixed moves, with copper futures down 0.5% on weakening China demand outlook. Investors are particularly focused on the final GDP figure, which could confirm whether China’s post-pandemic recovery is gaining momentum. A growth rate above 5.0% would be viewed positively, while any reading below 4.8% could trigger broader risk-off behavior. Financials and consumer goods stocks were among the weakest performers, with major banks and auto manufacturers under pressure. The market’s reaction underscores the global dependence on China’s economic trajectory. As the world’s largest exporter and importer, China’s demand for raw materials and manufactured goods directly affects commodity prices, trade flows, and corporate earnings across Asia and beyond.