China reports better-than-expected macroeconomic figures

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The stock exchange meters in the Asian region showed a mixed picture on Monday. Investors processed a series of macroeconomic figures from China. Growth in the second largest economy in the world was higher than expected in the fourth quarter. Industrial production also increased more than expected in December. However, sales in the country were lower than hoped. Last Friday, American retail sales also showed a decline as a result of the stricter COVID measures.

The main index in Shanghai increased by 1% in the meantime, and the Hang Seng index in Hong Kong won 0.8%. The Chinese economy grew by 6.5% in the fourth quarter. Across 2020, growth was 2.3%. China is thus the only large country that managed to avoid a contraction in the year of Coronas. Economic growth has been the slowest in the last 44 years. In 2019, the Chinese economy grew by 6.1 percent.

In Tokyo, the Nikkei dropped 1 percent at 28.242, 21 points. The Japanese chip companies were particularly under pressure. According to Reuters, the Trump government has informed a number of suppliers of the Chinese Technology Group Huawei, including chip maker Intel, that certain licences to sell products to Huawei are being withdrawn. Huawei is blacklisted by the United States because of “close ties with the Chinese government and the army”.

The Kospi in Seoul dropped 1.8%. The South Korean Technology Group Samsung lost 3%. Jay Y. Lee, president of Samsung, was sentenced by a court in Seoul to two and a half years in prison for his role in a long-term bribery scandal in the country.

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