Disappointing Chinese economic news puts pressure on Asian bourses

SYDNEY - Asian stocks dipped yesterday as Chinese economic data disappointed and investors pondered whether a marked flattening in the US yield curve might ultimately be a harbinger of a slowdown there.

China’s retail sales rose 10 percent year on year in October, while industrial output grew 6.2 percent.

Both came in under market forecasts and nudged down the Australian dollar, which is often used as a liquid proxy for bets on China. The immediate damage was limited in stocks, with the blue-chip CSI300 index off 0.4 percent and EMini futures for the S&P 500 down 0.1 percent.

MSCI’s broadest index of AsiaPacific shares outside Japan dipped 0.1 percent after two sessions of declines, while Australia fell 0.8 percent.

Japan’s Nikkei managed to recoup 0.5 percent after four sessions of losses.

Investors were waiting for any signs of compromise on US tax policy, after US Senate Republicans last Thursday unveiled a plan that would cut corporate taxes a year later than a rival bill from the House of Representatives.

Also on the menu of possible market-moving events are no fewer than 13 central bank speakers, including the heads of the US, European, British and Japanese central banks.

On Wall Street, a sharp drop in General Electric shares was offset by gains in high dividend-paying sectors including consumer staples and utilities.