Sentiment among Japanese manufacturers stabilized to the least pessimistic in more than a year; China’s economy picked up speed in the fourth quarter.
Economic data out of Asia on Monday suggests the region may be stabilizing, creating a less pessimistic outlook for early 2021, but with coronavirus infections still rising in the area, there is evidence that consumers are still feeling a little cautious about spending.
Sentiment among Japanese manufacturers stabilized in January to the least pessimistic in more than a year from the impact of COVID-19, but service firms grew gloomier just as new lockdowns hit most of the population, the Reuters Tankan poll found.
The Reuters Tankan sentiment index for manufacturers rose to minus 1 from minus 9 in the previous month, while the service-sector index fell to minus 11 from minus 4 in December, according to the December 24 – January 13 survey.
China’s economy picked up speed in the fourth quarter, with growth beating expectations as it ended a rough coronavirus-stricken 2020 in remarkably good shape and remained poised to expand further this year even as the global pandemic raged unabated.
Gross Domestic Product (GDP) grew 2.3% in 2020, official data showed on Monday, making China the only major economy in the world to avoid a contraction last year as many nations struggled to contain the COVID-19 pandemic.
GDP expanded 6.5% year-on-year in the fourth quarter, data on the National Bureau of Statistics showed, quicker than the 6.1% forecast by economists in a Reuters poll, and followed the third quarter’s solid 4.9% growth.
China’s property investment rose more slowly in 2020 from a year earlier although the rate of growth remained robust, official data showed on Monday.
Real estate investment in China rose 7.0% in 2020 from a year earlier, accelerating from a 6.8% gain in the first 11 months of the year, the National Bureau of Statistics (NBS) said in a statement. But the growth rate was down from 9.9% in 2019.
China’s industrial output rose at a faster-than-expected rate of 7.3% in December from a year ago, data showed on Monday, expanding for the ninth straight month as the vast manufacturing sector, aided by strong exports, continues its post-COVID recovery.
China’s Retail Sales edged up 4.6% last month from a year earlier, missing analysts’ forecast for 5.5% growth, in contrast to 5.0% growth in November.
Fixed Asset Investment increased 2.9% in 2020 on year, compared with a forecast 3.2% increase and a 2.5% growth in the first 11 months of the year.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.