China on Thursday reported that the country’s GDP grew by 3.2% in the second quarter of this year as compared to a year ago. That was higher than expectations of a 2.5% growth in the April to June quarter by economists in a Reuters poll. Meanwhile, retail sales in June fell 1.8% on-year, falling short of expectations of a 0.3% growth by analysts in a Reuters poll.
Data releases out of China have been watched by investors for clues on the country’s economic recovery from the coronavirus.
Commenting on the Chinese GDP print, JPMorgan Asset Management’s Marcella Chow wrote in a note: “Looking forward, we expect to see continuous improvement in the upcoming quarters as domestic economic activities largely resume.”
“Along with the increase in government-driven infrastructure investment, consumption might become a new growth driver,” Chow said. “Since domestic households have accumulated huge amount of bank deposits for precautionary savings during the economic slowdown and pandemic, fast recovery might be seen in consumption when their confidence improves.”
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.132 after touching an earlier low of 95.999.
The Japanese yen traded at 106.95 per dollar after strengthening sharply from levels above 107.1 yesterday. The Australian dollar changed hands at $0.6987 following a rise from levels below $0.696 seen earlier in the trading week.
Oil prices dipped in the afternoon of Asian trading hours, with international benchmark Brent crude futures down 0.57% to $43.54 per barrel. U.S. crude futures also shed 0.73% to $40.90 per barrel.
— CNBC’s Arjun Kharpal contributed to this report.
Source: CNBC