Worries about the world's two largest economies drag down Asian stocks

Investors monitor stock indexes in Jiangsu province, China. (Photo: THX/TTXVN)

In the trading session on May 19, Asian stock markets fell, as Chinese economic data showed that the domestic economy is still facing difficulties.

In Japan, the Nikkei 225 index fell 0.67% to 37,498.98 points.

In China, the Shanghai Composite Index fell 0.01% to 3,367.04 points; while the Hang Seng Index of the Hong Kong market fell 0.17% to 23,306.36 points.

China's industrial output and retail sales growth slowed in April, official data showed on May 19, as the trade war threatened to slow growth in the world's second-largest economy.

In addition, concerns about America's erratic economic policies have deepened after Moody's downgraded the credit rating of the world's largest economy.

Concerns about the US's $36 trillion debt have also increased as Republicans seek to pass a sweeping tax cut package that could add another $3 trillion to $5 trillion to the debt over the next decade.

The market is forecasting the US Federal Reserve will cut interest rates by only 53 basis points this year, lower than the forecast of more than 100 basis points a month ago.

A host of Fed officials are scheduled to speak this week, including New York Fed President John Williams and Fed Vice Chairman Philip Jefferson.

In currency markets, the euro rose 0.1% to $1.1180 per euro, while the dollar fell 0.3% to 145.19 yen per dollar.

In an interview published over the weekend, European Central Bank (ECB) President Christine Lagarde said the recent decline in the dollar reflects a loss of confidence in US policies and this could benefit the euro.

In Vietnam, at the end of the morning session on May 19, the VN-Index increased by 1.58 points to 1,302.97 points; while the HNX-Index decreased by 0.84 points to 217.85 points./.

Source: VNA/Vietnam+

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